2-wheeler vehicle retail sales growth touches 20% in Aug

New Delhi: Two wheeler retail sales remained healthy in the month of August, with retail growth of 18–20 per cent year on year supported by the Onam festival and a low base, a report said on Thursday.

The report from Yes Securities said organic inquiries rose 10-12 per cent, with healthy traction across urban and rural markets. Premium ICE and EVs remain the key growth drivers, with OEMs ramping up supplies ahead of the festive season, the report said.

Passenger vehicle retail was also healthy, with 11–13 per cent year on year growth and a 20 per cent boost from the Onam festival, while urban markets outperformed rural ones. Inventories remained lean at roughly four weeks despite healthy dispatches, although waiting periods remained elevated for key alternate fuel models.

Medium and heavy commercial vehicle demand stayed firm, with an impending November 2026 ban on BS4 vehicles entering Delhi NCR expected to provide replacement tailwinds. Dealer inventories remain optimal at 20-22 days, the report noted, adding that tractor sales remained at a healthy double digit. The firm said that channel partners, especially from urban/tier 1/tier 2 cities, indicated very strong pull for the EV volumes, continuing even in August.

“Model mix remains healthy as top-end variants are seeing stronger acceptance as consumers increasingly value technology, performance and features beyond just cost savings,” the report noted.