TVS Motor Company has projected moderate single-digit growth for India’s two-wheeler industry in FY27, despite strong momentum in scooters, electric vehicles, and premium motorcycles. The forecast follows a strong FY26, during which the industry recorded 21.71 million unit sales, surpassing pre-pandemic levels.
- TVS expects good single-digit industry growth in FY27
- Scooters, EVs, and premium segment to drive demand
- Rising input costs and supply chain disruptions remain concerns
TVS Motor outlook for FY27
Commuter segment expected to face the most pressure from inflation
Speaking on the outlook, CEO K. N. Radhakrishnan said demand is expected to remain strong across most segments, but highlighted key challenges.
“We are expecting good single-digit growth in the industry this year. There are challenges in terms of gases and inflation. Thanks to the product range, demand is very robust. Scooter growth momentum will continue, EVs will be very good, the premium segment will also grow, the challenge will be in the economy category, where our proportion will be very small,” he said.
The cautious outlook comes after a strong FY26, when two-wheeler volumes grew 26.4 percent year-on-year. Motorcycle sales rose 6.6 percent to 13.06 million units, while scooters grew 18.5 percent to 8.12 million units, driven by urban demand and increased EV adoption. The mid-year GST reduction also played a key role in improving affordability, particularly in the entry-level segment.
Radhakrishnan also pointed to several headwinds that could impact growth. “In this financial year, we are looking at the continuation of the GST benefits. There are some headwinds in terms of the ongoing West Asia conflict. There are challenges in terms of commodity prices – steel, aluminium, and crude oil derivatives. And there are pressures on input costs, as well as some supply chain disruption,” he said.
However, he noted that supply conditions are gradually improving. “Supply-chain issues are improving; things are becoming better. This month is going to be better,” he added.
Industry executives have indicated that retail demand has remained steady despite concerns around geopolitical tensions, helped by relatively stable fuel prices. However, manufacturers remain cautious, as any sharp rise in crude prices could impact demand in the commuter motorcycle segment.
TVS expects scooters, electric vehicles, and premium motorcycles to remain the key growth drivers in FY27, while the economy motorcycle segment could face pressure if inflation remains elevated or fuel costs increase. The company’s relatively limited presence in this segment is likely to shield it from potential downside risk.
Kiran Murali & Darshan Nakhwa
