Mumbai: India’s two-wheeler industry is poised to surpass pre-Covid sales levels in the financial year 2025-26, with an expected volume growth of 8-9 per cent, according to a CareEdge Ratings report released on Monday.

Key tailwinds such as easing inflation, higher disposable income driven by a full income tax rebate for individuals earning up to Rs 12 lakh per annum and a more accommodative monetary policy -- highlighted by the cumulative 100 bps rate cut by the RBI since February 2025 with recent 50 bps rate cut announced in June 2025 -- are set to boost consumer sentiment and affordability.

A favourable monsoon could further strengthen the growth prospects, setting the stage for the industry volumes to surpass pre-Covid levels.