Two-wheeler sales to sustain growth momentum in FY26: TVS Motor

The domestic two-wheeler industry is expected to sustain growth momentum this fiscal, aided by income tax relief, enhanced spending on infrastructure and expectations of a normal monsoon, TVS Motor Company CEO KN Radhakrishnan has said.

Overall, two-wheeler registrations rose 8 per cent to 1,88,77,812 units in FY25 compared to 1,75,27,115 units in 2023-24.

"Overall growth momentum in the domestic market, we are expecting, is likely to be like last year," Radhakrishnan told analysts in a call.

He noted that the first quarter of the fiscal year could be moderate in terms of sales, but May and June are expected to be robust, with both months having many marriage days.

Radhakrishnan stated that the country's GDP is estimated to grow by around 6.5 per cent in FY26.

This is primarily driven by the increase in consumption and improvement in the agricultural sector, he stated.

Elaborating on the positive factors, Radhakrishnan said the reduction in the benchmark repo rate of 50 basis points in the last three months has translated into lower EMI for consumers.

"It is going to help enhance the affordability for two-wheelers across the board. Another major impetus (announced in the Union Budget) is income tax rebate under the new tax regime, which is hiked from Rs 7 lakh to Rs 12 lakh," he stated.

Besides, consistent infrastructure improvement by the government will vitalise the economy and improve the quality of life in the mid- and long-term, Radhakrishnan said.

"We are expecting a normal monsoon, which is going to also improve the rural sentiment and economy," he noted.

The company also expects a positive sentiment with an uptick in the replacement cycle this year, he added.

In FY25, the overall two and and three-wheeler sales of TVS Motor Company grew by 13 per cent to 47.44 lakh units against 41.91 lakh units in 2023-24.