TVS Motor CEO Predicts 8-9% CAGR for Two-Wheeler Industry Growth

The two-wheeler market is about to grow strongly, having a CAGR of 8-9 percent in the long term. KN Radhakrishnan, CEO of TVS Motor Company, has indicated that the government investment in infrastructure, reduced GST rate and the general growth of the economy will cause this growth.

Radhakrishnan noted that the sales would experience high growth in the first half of the coming fiscal year as the impacts of the GST rate cut will still be felt in the industry.

On the positive side of the two-wheeler sector, he indicated that 8 per cent to 9 per cent as a CAGR, one can look at it on a long-term basis. These gains should be realized in the Q4 performance and further enhanced by the GST cut, which will take effect on September 22, 2025.

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One of the reasons behind this optimism is that road connectivity in rural, urban and semi-urban regions has been enhanced and the issues of public transportation continue to pose a problem. Furthermore, the self-employed category that comprises a good percentage of the Indian population is also best fitted with two-wheelers because they are affordable and convenient in providing mobility to them.

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Radhakrishnan predicted that the market of two-wheelers will grow in FY27 and the reduction in the GST rate will not only favor the two-wheelers but also other industries. He projects a possible growth rate of above 15 per cent in the fourth quarter, which is one of the best performances observed in the industry.