Two-Wheeler Sales Surpass Pre-COVID Peak in FY26, EVs Shine

The two-wheeler industry witnessed a YoY growth of 13.40 percent as 2.14 crore units were sold in FY26, revealed FADA data

The two-wheeler industry ended FY26 with overall retail volumes of 2.14 crore units and YoY growth of 13.40 percent, as per the data shared by Federation of Automobile Dealers Associations (FADA). The retail body termed FY26 as a “two phase” year as demand between April and August 2025 remained muted due to pre-GST 2.0 uncertainty while the period from September to March witnessed a decisive upward shift due to improved affordability and lifted sentiment as GST 2.0 kicked in. The two-wheeler sales surpassed its pre-COVID peak.

Coming to March 2026 sales, more than 19.51 lakh two-wheelers were sold during the month with a YoY growth of 28.68 percent as compared to March 2025. Interestingly, one out of every ten two-wheelers sold in March 2026 was an EV. The market share of all-electric models rose up to 9.79 percent in the whole two-wheeler segment last month, which is the highest till date.

Reflecting on FY 2025-26 Auto Retail performance, FADA President Mr. C S Vigneshwar said: “Two-Wheelers reclaimed their pre-COVID peak, retailing over 2.14 crore units and growing 13.40% — a recovery that had been long awaited and was finally unlocked by the combination of GST-led affordability, improved rural cash flows, and a broadening product portfolio that catered to both entry-level and aspirational segments.”

The rural regions outnumbered urban circuits in March 2026 as the former grew by 26.49 percent as compared to latter’s growth rate of 23.82 percent, making March one of the rare months where rural growth decisively exceeded urban growth across most major categories. This is a validation of the widening geographic spread of auto retail demand in India and the role that improved rural incomes, better connectivity, and expanding personal mobility are playing in shaping the market.

In FY26, the electric models had a market share of 6.54 percent in the two-wheeler segment, up from 6.09 percent in FY25. Several leading brands such as TVS Motor Company, Bajaj Auto and Ather Energy recorded their highest-ever monthly volumes in March 2026 at 49,453 units, 46,246 units and 35,688 units, respectively. Hero Vida also posted its highest-ever monthly sales in March 2026 with over 21,000 units sold.

Ola Electric also bounced back to register sales of more than 10,000 units in March 2026. The top two brands namely TVS and Bajaj grabbed more than 50 percent of the overall market share in the electric two-wheeler industry. Ather Energy also improved its market share while Hero Vida’s market share crossed double digits for the first time.