India Two Wheeler Industry Set for 8–9 Percent Long Term Growth, Says TVS Motor CEO KN Radhakrishnan

GST Rate Cut, Infrastructure Push to Drive Sector Momentum​

New Delhi, February 22: India’s two wheeler industry is poised for sustained long term expansion, with growth potential of 8 to 9 percent CAGR, according to TVS Motor Company CEO KN Radhakrishnan.

Speaking about the sector’s outlook, Radhakrishnan expressed confidence that structural tailwinds such as the GST rate cut, increased government infrastructure spending, and overall economic expansion will continue to fuel demand.

“Overall, I am confident that an 8 percent to 9 percent CAGR can be considered on a long term basis,” he said while responding to queries on growth prospects for the next fiscal year following a strong third quarter performance.

Strong First Half Expected in FY27​

Radhakrishnan indicated that the first half of the upcoming fiscal year is expected to remain very strong in terms of sales growth. He highlighted that the benefits of the GST rate cut, implemented on September 22 last year, will continue to flow into the industry.

He noted that the impact of the tax reduction will be visible in the fourth quarter and carry forward into the next fiscal year.

“The first half of the next fiscal year is also going to be very good because the benefits will accrue to the industry,” he said.

While refraining from providing a precise forecast, he added that robust growth in the two wheeler segment is likely even in FY27.

Rural Connectivity and Self Employed Segment to Support Demand​

Explaining the optimism, Radhakrishnan pointed to improved road connectivity across rural, urban, and semi urban areas. With public transport systems still facing challenges, personal mobility solutions such as two wheelers are expected to remain in demand.

He also underscored the importance of the self employed segment in India’s population structure. According to him, two wheelers offer an affordable and practical mobility solution for this group, with nearly 50 percent of self employed individuals relying on them for commuting and livelihood needs.

Q4 Growth Could Cross 15 Percent​

Radhakrishnan expressed strong confidence about the current quarter, stating that fourth quarter growth in the two wheeler industry could be upwards of 15 percent, describing it as one of the strongest growth rates seen in recent times.

He also observed that the GST rate cut has not only supported the two wheeler segment but has benefited consumers across multiple sectors in the ongoing fiscal year.

FY26 Growth Likely Around 9 Percent​

For FY26 as a whole, he acknowledged that the first half was relatively subdued, with growth of around 2 percent. However, he expects the full year to close at approximately 9 percent growth.

With improving economic conditions, sustained infrastructure development, and supportive policy measures, the Indian two wheeler industry appears positioned for steady expansion in the coming years.