
Two-wheeler sales poised to accelerate by 9 pc in FY 26: Report
India's two-wheeler industry
is poised to surpass pre-Covid sales levels in the
financial year 2025-26
, with an expected volume growth of 8-9 per cent, according to a
CareEdge Ratings
report released on Monday.
Key tailwinds such as easing inflation, higher disposable income driven by a full income tax rebate for individuals earning up to Rs 12 lakh per annum and a more accommodative monetary policy -- highlighted by the cumulative 100 bps rate cut by the RBI since February 2025 with recent 50 bps rate cut announced in June 2025 -- are set to boost consumer sentiment and affordability. A favourable monsoon could further strengthen the growth prospects, setting the stage for the industry volumes to surpass pre-Covid levels.
CareEdge Ratings notes that during the past three years, ending FY25, the Indian two-wheeler industry maintained healthy volume growth of 8 per cent, 10 per cent, and 11 per cent in FY23, FY24, and FY25, respectively.
Volume growth in FY25 was supported by a substantial 21 per cent
export recovery
and a 9 per cent rise in domestic volumes. The export recovery was due to stabilisation in key markets affected by inflation, high interest rates, and currency issues in earlier years. Domestic volumes were supported by a substantial uptick in rural demand and sustained urban demand, the report states.
Madhusudhan Goswami, assistant director at CareEdge Ratings said, "CareEdge Ratings anticipates that the two-wheeler industry is set to vroom past the pre-Covid levels in FY26 with healthy volume growth of approximately 8-9 per cent, aided by export volumes accelerating at 12-14 per cent and
domestic sales volumes
maintaining a steady 6-8 per cent rise."
"This growth trajectory will be driven by strong export demand, rising adoption of electric vehicles (EVs), easing inflation, and a revival in rural sentiment, supported by expectations for a favourable monsoon and improved income levels. Additionally, the cumulative 100 bps rate cut by the RBI since February 2025, with the recent 50 bps rate cut announced last week, is expected to enhance affordability and boost demand," he added.
In FY25, rural areas accounted for 58.30 per cent of total retail registrations, marginally up from 57.9 per cent in FY24. While FY25 wholesale volumes of 23.81 million units remain just below the FY19 peak, the industry is steadily closing the gap. Though recovering from post-Covid challenges and price sensitivity, entry-level motorcycles have consistently improved since FY23. A shift in consumer preference towards scooters and executive motorcycles has also reshaped the market, signalling evolving demand patterns, the report added.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Mint
30 minutes ago
- Mint
AI-native startups edge out SaaS in investor playbooks as tech shift accelerates
India's venture capital ecosystem is undergoing a pivotal shift in 2025, with investors increasingly backing artificial intelligence (AI)-native startups over traditional software-as-a-service (SaaS) players. Between January and 4 June, AI-focused startups raised $454 million across 65 deals, slightly surpassing SaaS firms, which drew $432 million over 52 deals, according to data from Venture Intelligence. While some overlap exists as SaaS companies adopt AI features, the trend points to a deeper reset in investor priorities. 'AI-led startups are commanding 3–4x valuation premiums over traditional SaaS businesses, thanks to their potential for faster scalability and deeper, more transformative use cases," said Abhinav Chaturvedi, partner at Accel. Also read: 10 Indian AI startups and products to watch out for Blurring boundaries However, to stay competitive with pure-play AI startups, many SaaS companies are now streamlining operations and aggressively investing in artificial intelligence, according to multiple industry executives. This trend is pushing established SaaS companies to retool quickly. 'If SaaS companies don't integrate AI, they are unlikely to survive the next 2–3 years," said Nitin Bhatia, managing director at DC Advisory. 'We're seeing the switch happen where pure-play SaaS startups don't exist anymore. AI is becoming a fundamental part of what they offer—whether it's to enhance customer experience or product capabilities." This transition is also shaping the investment strategies of venture capital firms such as Stellaris Venture Partners, Bessemer Venture Partners, and Accel, who see the convergence of AI and SaaS playing out across their portfolios. Accel's Chaturvedi pointed to SaaS portfolio companies like Chargebee, which is exploring newer monetisation models like usage-based pricing, and BrowserStack and Testsigma, which are embedding AI to automate testing—showing how legacy players are not just adapting but helping shape this transformation. Some of the largest AI-linked fundraises this year include Netradyne's $90 million, SpotDraft's $54 million, and Infinite Uptime's $35 million rounds, according to Venture Intelligence data. The narrowing gap between AI and SaaS deal volumes underscores growing investor appetite for pure-play AI models. Deal data reflects this shift: in 2024, there were 193 SaaS deals versus 145 AI deals. A year earlier, SaaS saw 159 deals compared to just 96 in AI. While SaaS still leads in terms of overall capital raised, AI startups are quickly gaining ground with more focused, domain-specific solutions. Also read: Meta in talks to invest nearly $10 billion in artificial intelligence startup Scale AI Even within traditional SaaS portfolios, companies are recalibrating. 'Our existing SaaS portfolio companies are investing aggressively in AI capabilities. From Whatfix in the digital adoption space to Factors in marketing automation, most of our portfolio companies are already using AI to add features, increase convenience and reduce cost for their customers," said Ritesh Banglani, founding partner at Stellaris Venture Partners. According to Banglani, more than 80% of Stellaris' B2B SaaS deal flow is now led by AI-centric solutions. 'This shift will transform every process within an enterprise from marketing and sales to accounting and finance," he added. A generational shift Industry veterans believe the shift marks a generational reset for Indian software startups. SaaS inflows have dried up, Zoho founder Sridhar Vembu said last week, attributing it to rising investor appetite for AI and growing profitability pressure on SaaS firms. He noted that artificial intelligence is now superseding traditional SaaS models in funding priority. Still, the broader outlook for SaaS remains strong—with a caveat. In August, Bessemer Venture Partners projected that the Indian SaaS market could generate three times more revenue by 2030 compared to today, driven in large part by the infusion of AI. In 2025, Indian SaaS is expected to clock $25 billion in annual recurring revenue. Bessemer also expects India to see a similar shift as the global SaaS wave of the late 2010s—with AI software exports playing a bigger role in the $400 billion global services market. As the Indian startup ecosystem matures, the once-clear boundaries between SaaS and AI are dissolving—with capital, innovation and talent increasingly flowing toward platforms that can do both. Also read: Boom in AI fuels a flurry of startups


Time of India
32 minutes ago
- Time of India
Che_JM_Significant Rise in Shift to Non-Farm Sector Jobs in TN
Chennai: Tamil Nadu is seeing a significant shift from employment in the agriculture sector. A survey conducted between 2012 and 2024 revealed a decline in agricultural dependence and a rise in non-farm jobs due to increased access to higher education and the availability of non-farm employment. While 40% of the population relied on agriculture in 2012, this share dropped considerably. By 2024, it decreased by nearly 20%. In terms of gender distribution, 81% of men are engaged in non-agricultural work. For women, the corresponding figure is 71%. Villages selected for the study were chosen based on their rural non-farm employment rates. Tirunelveli, Thoothukudi, Tenkasi, and Virudhunagar reported relatively higher rates. In contrast, Thanjavur and Pudukottai showed lower rates of rural non-farm employment. The study found that agriculture was the primary occupation in only one village. This indicated that agriculture is no longer the sole occupation for households in rural Tamil Nadu. Non-agriculture is evolving beyond a peripheral activity. It is no longer considered a 'residual' activity, as some studies previously suggested. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Good News: You May Be Richer Than You Think Undo In 2012, 43% of workers were engaged in agricultural work. This figure sharply declined to 22% within a decade. Conversely, the percentage of workers engaged in non-agricultural work increased significantly, rising from 57% to 78% during the same period. Agriculture still provides livelihood for many rural workers, but the shift towards secondary and tertiary sectors is accelerating over the years. Younger workers, aged 15–34, are increasingly transitioning away from agriculture and seeking opportunities in non-farm jobs. Construction is a dominant sector for male workers. Manufacturing remains a significant non-agricultural activity for female workers. This trend is consistent across all age groups. The average annual earning of a non-agricultural labourer is estimated to be Rs 1.39 lakh. In comparison, an agricultural labourer earns an average of Rs 37,577. A self-employed worker in agriculture earns approximately Rs 99,400 annually. The report highlighted disparities in earnings based on caste. "The earnings of non-agricultural labourers belonging to different castes seem to be in alignment with the prevalent caste hierarchy: labourers belonging to Scheduled Castes, in general, earn the lowest," the report said. Mobility for employment is a common phenomenon, with more than half of non-agricultural workers migrating for job opportunities. State Planning Commission Vice-Chairman J Jeyaranjan said the high duration of employment and higher wages in non-farm sectors are significant factors. These advantages neutralise the uncertainties associated with agriculture. "Agriculture has become supplementary now. Non-farm employment has become primary income due to growing importance. The major problem in agriculture is seasonality, and employment for 120 days a year," Jeyaranjan told TOI. EOM// MSID:: 121733500 413 |


Economic Times
32 minutes ago
- Economic Times
Deploy Bull Call Spread in GAIL to play a bullish bet
GAIL shares have been trading at Rs 193.64, nearing a potential breakout from a Cup and Handle pattern on the daily to analysts, the stock has formed a strong bullish candle with rising volumes. This indicates growing buying interest and building pressure near the neckline of the pattern. 121745454'A decisive close above Rs 195 will confirm the breakout and could open the gates for a fresh rally in the coming sessions,' said GAIL shares have been trading at Rs 193.64, nearing a potential breakout from a Cup and Handle pattern on the daily to analysts, the stock has formed a strong bullish candle with rising volumes. This indicates growing buying interest and building pressure near the neckline of the pattern. 121745454'A decisive close above Rs 195 will confirm the breakout and could open the gates for a fresh rally in the coming sessions,' said GAIL shares have been trading at Rs 193.64, nearing a potential breakout from a Cup and Handle pattern on the daily to analysts, the stock has formed a strong bullish candle with rising volumes. This indicates growing buying interest and building pressure near the neckline of the pattern. 121745454'A decisive close above Rs 195 will confirm the breakout and could open the gates for a fresh rally in the coming sessions,' said GAIL shares have been trading at Rs 193.64, nearing a potential breakout from a Cup and Handle pattern on the daily to analysts, the stock has formed a strong bullish candle with rising volumes. This indicates growing buying interest and building pressure near the neckline of the pattern. 121745454'A decisive close above Rs 195 will confirm the breakout and could open the gates for a fresh rally in the coming sessions,' said FONT SIZE SAVE PRINT COMMENT