India Sees Robust Growth in Two-Wheeler Sales for Q2 FY25

The Indian two-wheeler market experienced strong double-digit growth year-on-year in the second quarter of FY25, while three-wheelers reported high single-digit increases, according to a report released on Wednesday. Wholesale volume trends across segments were mixed, with two-wheelers outperforming other categories.

Original Equipment Manufacturers (OEMs) displayed varied revenue growth and profit margins during the July-September period, reinforcing the dominance of two-wheelers in the market.

The report from BNP Paribas India indicates a cautiously optimistic outlook for passenger vehicles (PVs), despite a slight decline in volumes. It notes that the weakness in commercial vehicles (CVs) is viewed as a temporary setback, as the sector appears to be entering a new upcycle.

Challenges for PVs included a marginal decline in volume and subdued CV sales, attributed to prolonged monsoon conditions and a slowdown in infrastructure activities leading to low fleet utilisation.

In the two-wheeler segment, Honda Motorcycle and Scooter India (HMSI) gained the most retail market share, while Hero MotoCorp Ltd (HMCL) experienced the largest loss in Q2 FY25. In the passenger vehicle sector, Mahindra & Mahindra saw the greatest market share gain, while competitors Maruti Suzuki India Ltd and Hyundai faced losses.

The report projects high single-digit to strong double-digit revenue growth for two-wheelers, while forecasting flat to high single-digit revenue declines for passenger vehicles, with the exception of Mahindra .

Key factors to monitor include management commentary regarding elevated PV inventory levels, rising discounts, and expectations for festive demand.

The report also highlights global auto demand weaknesses, noting a potential risk that Jaguar Land Rover (JLR) may lower its FY25 guidance, possibly deferring next year’s projections.

Latest data from the Society of Indian Automobile Manufacturers (SIAM) shows that domestic sales of passenger vehicles reached 315,689 units in September, slightly down from 316,908 units in the same month last year.