New Delhi, August 27: India’s two-wheeler retail market recorded strong momentum in August, with sales estimated to grow 18–20% year-on-year, supported by the Onam festival and a favourable low-base effect, according to a Yes Securities report.

The report said consumer interest remained robust, with organic enquiries rising 10–12% and healthy traction across both urban and rural markets. Premium internal-combustion-engine (ICE) models and electric two-wheelers emerged as key growth drivers as manufacturers increased supplies ahead of the upcoming festive season.

The strong performance reflects changing consumer preferences, with buyers increasingly showing interest in technology, performance and feature-rich models rather than focusing solely on affordability. The report also highlighted particularly strong demand for EVs among customers in urban and Tier-1 and Tier-2 markets.

Demand was not limited to two-wheelers. Passenger vehicle retail sales were estimated to rise 11–13% year-on-year, while Onam provided an additional boost, particularly in urban markets. Dealer inventories remained relatively lean at around four weeks, indicating that manufacturers are entering the festive period with controlled stock levels.

The report also pointed to a sharp increase in interest in alternative-fuel vehicles, with CNG and EV enquiries and bookings rising more than 30%, driven partly by new product launches. EV waiting periods for high-demand brands remained elevated at around three to four months, compared with roughly one to 1.5 months for ICE models.

With the festive season approaching, the sustained retail momentum could provide a further boost to India’s automobile industry, supporting manufacturers, dealers and the broader automotive supply chain.