The domestic production of the two-wheeler segment dropped to about 1.83 crore in FY21 as against the production of about 2.10 crore in FY20, financial services credit rating company Infomerics Valuation and Rating said in a report.

According to the Industry Outlook Automobile Industry report, the Indian automobile industry is valued at more than INR 8 lakh crore. Its turnover contributes approximately 7.1 percent of overall GDP, 27 per cent of industrial GDP and 49 per cent of manufacturing GDP. 

With the pandemic causing havoc in the automobile industry, the numbers have plummeted in FY21 for both production and sales, compared to the figure in FY20.

The study said two-wheeler is the most significant contributor to the automobile sector. It contributes about four-fifth to the overall industry, followed by passenger vehicles, contributing approximately 13 per cent to the industry.

Following some positive steps from the government, the automobile industry emerged as the top sector during the first four months of FY2021-22 with a 23 per cent share of the total FDI equity inflow, the study pointed out. The reforms by the government in FDI policy, investment facilitation and improving ease of doing business are some of the reasons for the increased FDI inflow, it said.

Along with enhancing FDI, the government has floated INT 25,938 crore worth of new production-linked incentive (PLI) scheme for the auto sector. The PLI Scheme for Automobile and Auto Components Industry will lead to a new investment of more than INR 42,500 crore, incremental production of over INR 2.3 lakh crore for five years. It is also expected to create additional employment opportunities for more than 7.5 lakh jobs.

The government also extended the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric vehicle (FAME) scheme by two years to 31 March 2024. Besides, the Central government approved the INR 76,000 crore scheme to boost semiconductor and display manufacturing.

However, the study pointed some significant challenges for the industry in future. It said there was a mismatch between funds allocated and disbursed. The Union government has only disbursed about 10 per cent (about INR 820 crore) of the total subsidies out of INR 8,596 crore earmarked under the FAME-II scheme. EV makers pointed out that the aggressive localisation criteria for qualifying for FAME-II were a reason for the limited disbursal under the scheme. The semiconductor shortage has also been adversely affecting the industry. The automotive component industry, which had a turnover of INR 3.40 lakh crore (USD 45.9 billion) for the April 2020-March 2021 period, posted a de-growth of 3 per cent, compared with the turnover in the previous year.

The report said the restructuring of Ford’s Indian operations caused massive anxiety for dealers and customers. The future of about 170 Ford dealers with a combined investment of INR 2000 crore and about 40,000 employees is uncertain, the study pointed out.

Some foreign original equipment manufacturers (OEMs) who exited in the last four years include General Motors in 2017, MAN Trucks in 2018, United Motor Cycles in 2019 and Harley Davidson in 2020. Accordingly, the FADA sought to introduce legislation, viz., Automobile Dealers Protection Act, to create an enabling environment for automobile dealers. Industry body FADA also indicated that it was the worst festive season in the decade, with overall vehicle registrations falling 18 per cent in 2021 as against the festive season in 2020.

However, the report highlighted that the EV segment and the sector growth is optimistic and is also likely to get an impetus by the government’s series of incentives.

Besides, the report is not very optimistic about the overall industry in the short term due to the semiconductor shortage and infrastructure challenges on the EV front.

The industry faces challenges from other factors like triple-digit fuel prices and the sudden exit of big companies. The report suggested that the industry needs to work on the semiconductor issue and try to develop native capacities, adding that the government needs to work in tandem and consider reducing fuel prices. (MT)

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Pune-headquartered two-wheeler and three-wheeler major Bajaj Auto has announced its wholesales for June 2026.

The company recorded total sales of 463,202 units last month, which was 28 percent higher compared to 360,806 units in June 2025. This includes 389,395 two-wheelers, up 30 percent YoY, as compared to 298,484 units a year ago.

Interestingly, while the company’s domestic sales grew by 12 percent to 166,956 units, its exports saw 49 percent YoY growth to 222,439 units.

Three-wheeler sales for last month came at 42,881 units (+10 percent YoY) in the domestic market and 30,926 units in the export market (+33 percent YoY).

For Q1 FY2027, the domestic two-wheeler sales came at 586,547 units, up 11 percent YoY, as against 529,344 units a year ago. Exports on the other hand saw a robust 52 percent YoY growth to 636,005 units, as against 419,447 units last year.

Three-wheeler sales in the domestic market grew by 13 percent YoY to 119,531 units, while exports grew 69 percent YoY to 96,168 units.

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Chennai-headquartered two-wheeler and three-wheeler major TVS Motor Company has announced its wholesales for June grew by 47 percent to 590,003 units, as compared to 402,001 units sold last year.

Sales for two-wheelers came at 565,417 units, which includes 411,014 units in the domestic market, while exports came at 154,403 units. In the domestic market, scooter sales came at 247,950 units, while motorcycles accounted for 267,096 units.

Electric two-wheelers saw a substantial jump from 14,400 units sold in June 2025, to 48,537 units sold last month.

On the other hand three-wheeler sales came at 24,586 units, up 51 percent YoY.

For Q1 FY2027, the company recorded sales of 1.63 million units. Two-wheeler sales reached 1.56 million units, while three-wheeler sales totalled 67,000 units. The company's international business accounted for 468,000 units and electric two-wheelers sales reached 130,000 units for the quarter.

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Chennai-headquartered mid-sized motorcycle major Royal Enfield has reported its wholesales for June 2026.

The company sold 114,032 motorcycles last month, which marked a 27 percent YoY growth compared to 89,540 motorcycles sold in June 2025. This includes 102,930 units in the domestic market, up 34 percent YoY, while exports declined by 12 percent YoY to 11,102 units.

During the month, the company commenced customer deliveries of the Flying Flea C6 in Bengaluru.

B Govindarajan, Managing Director, Eicher Motors and Chief Executive Officer, Royal Enfield, said, “June 2026 was a milestone month for us as we began customer deliveries of the Flying Flea C6 from Bengaluru. The response to the FF.C6 continues to be highly encouraging and we will steadily roll out Flying Flea in other regions over the next few months. Our overall sales continued their growth trend with strong traction for our updated product portfolio across markets. During the month, we further strengthened our community initiatives with the inaugural Himalayan Basecamp: Ladakh Edition and the 22nd edition of the Himalayan Odyssey. Looking ahead, we remain optimistic about sustaining our momentum in the upcoming months.”

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Hero MotoCorp, the world’s largest two-wheeler manufacturer, has reported its wholesales for June 2026.

The company sold 541,159 units, down 2 percent YoY, as against 553,963 units last year. This includes 478,701 units in the domestic market, down 7 percent YoY, while exports came at 62,458 units, up 51 percent YoY

For Q1 FY2027, the company dispatched 1.68 million units, recording 23 percent YoY growth, 1.36 million units last year. Domestic wholesales came at 1.57 million units, up 21 percent YoY, while exports grew by 63 percent to 64,413 units.

VIDA, the electric mobility unit, recorded 21,812 registrations in June 2026, marking 185 percent YoY growth and an 8 percent increase compared to May 2026.

The company attributed retail sales growth in the domestic market driven by the scooter portfolio, while motorcycle demand remained constant.

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