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EV & Mobility

2W OEMs brace for slowdown as rural demand weakens, price hikes hit entry-level sales

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2W OEMs brace for slowdown as rural demand weakens, price hikes hit entry-level sales

2W OEMs brace for slowdown as rural demand weakens, price hikes hit entry-level sales

A weaker festive-season showing and sustained input cost inflation cloud the H2 outlook for ICE two-wheelers, while EV demand continues to outstrip supply at the top three OEMs.

Hero MotoCorp, TVS and Bajaj Auto expect two-wheeler sales growth to moderate in H2 FY27.

Electric two-wheeler demand is outpacing supply, prompting capacity expansion across all three OEMs.

PLI incentives are improving EV economics, with Bajaj and TVS qualifying for higher benefits.

Rural demand concerns and limited affordability could further weigh on entry-level motorcycle sales in the coming quarters.​

The going has been good so far, with India’s biggest two-wheeler OEMs reporting a healthy double-digit growth in sales in the first six months of the fiscal year. The sales grew despite earlier doomsday predictions about a moody monsoon severely affecting rural sentiment, rampant supply chain woes, and rising input costs expected to arrest the sales filip. The forecast for the remaining six months of the fiscal year, however, appears to be more sombre. Hero MotoCorp , TVS Motor Company and Bajaj Auto have said, after their September-quarter results announcements, that growth will likely moderate in the second half of fiscal 2027. Advt

The extent of moderation may be rather sharp, with Hero and TVS anticipating single-digit growth percentages in Q3, down from nearly 18-20 per cent in Q2. During Q2 and Q3 of FY26, the rollout of a lower GST regime had triggered a massive wave of pent-up consumer demand, boosting retail sales and creating a large base effect.


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