Synopsis: CRISIL expects India’s two-wheeler volumes to exceed 29 million in FY27, led by rural demand, exports and premiumisation, including companies that have recorded volume growth of up to 20 percent
India’s two wheeler industry is expected to grow 7 to 9 percent in fiscal 2027, with volumes crossing 29 million units, according to CRISIL Ratings. Domestic demand will drive about 80 percent of sales, helped by easing inflation, improving rural incomes, lower financing costs, and better affordability after GST cuts.
Exports are projected to expand faster than domestic sales for a third straight year, aided by recovery in Africa, Latin America, and other emerging markets. Premium motorcycles and higher scooter penetration are expected to lift realisations, supporting revenue growth even as manufacturers manage moderate commodity cost pressures through pricing actions and operating efficiencies.
Higher volumes and better product mix are likely to keep operating margins stable for major manufacturers. Stronger cash generation should support planned capital expenditure, electric vehicle investments, and dealer network expansion. Overall, the sector’s credit outlook remains stable, with healthy balance sheets, improving demand visibility, and steady profitability expected across leading companies next fiscal. The following are the stocks that could benefit from this growth
Hero MotoCorp
The company is India’s largest two-wheeler manufacturer and a global leader in commuter motorcycles. The company has a strong rural and semi-urban presence, an extensive dealer network, and growing exports. It focuses on fuel-efficient models, premium offerings, and expanding its electric vehicle portfolio through strategic investments.
Hero MotoCorp sold about 5.6 lakh units of two-wheelers in January 2026, showing a 26 percent YoY growth from 4.4 lakh units, moreover in this month the company saw about 5 lakh VAHAN registrations, this was supported by strong domestic demand, rural recovery, premium models expansion, and gradual export momentum improvement.
Bajaj Auto
Bajaj Auto is another leading Indian two- and three-wheeler manufacturer with a strong export footprint. Known for popular brands like Pulsar, it dominates the sports and premium commuter segments. The company benefits from robust international sales, strategic partnerships, and a growing electric mobility presence.
Bajaj Auto sold more than 4 lakh units of two-wheelers in January 2026, posting a YoY growth of more than 21 percent from 3.3 lakh units. This came after export recovery offset weak domestic demand, while premium motorcycles and EVs supported overall performance.
TVS Motor
TVS Motor Company is a major Indian two-wheeler manufacturer with a diversified product portfolio spanning commuter bikes, premium motorcycles, and electric scooters. The company has strengthened its global reach through exports and partnerships, while investing heavily in innovation, performance segments, and electric mobility solutions.
TVS Motor sold about 5 lakh units of two-wheelers in January 2026, recording more than 28 percent YoY growth from less than 4 lakh units of January 2025, driven by strong scooter demand, EV expansion, export recovery, and steady premium motorcycle sales momentum.
Eicher Motors
The brand Royal Enfield is owned by Eicher Motors who is the parent company of one the key players in India’s premium motorcycle segment. Royal Enfield drives strong domestic and export growth with its mid-size bikes. The company focuses on premiumization, global expansion, and new platform launches to strengthen its market position.
In January 2026, Royal Enfield sold more than 1 lakh bikes, marking a 14 percent YoY increase from last year’s 91,000 units. Domestic sales were around 94,000 units, up by 16 percent YoY, while exports reached 10,500 units, growing 5 percent YoY.
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