Citi raised its fiscal 2027 forecast for India’s two-wheeler volume growth to 9% from 7%, NDTV Profit and Business Upturn reported, after first-half volumes exceeded its expectations.
The Society of Indian Automobile Manufacturers (SIAM) reported domestic sales of 6.43 million two-wheeler units from July through September 2026, up 15.2% from a year earlier. Sales from April through September 2026 totaled 12,086,812 units. SIAM said the July-September figure was a record for a second quarter.
SIAM said more replacement demand and greater affordability under India’s GST 2.0 changes helped lift sales. An easier comparison with the previous year also contributed. Scooter sales rose 27.7% from a year earlier, while motorcycle sales increased 7.4%.
NDTV Profit reported that Citi raised its share-price target for Eicher Motors to 9,500 rupees from 8,850 rupees and retained its Buy rating. The outlet said Citi raised its Hero MotoCorp target to 7,200 rupees from 6,670 rupees, also keeping Buy. Its reported target for TVS Motor rose to 3,500 rupees from 3,100 rupees, but the Sell rating remained in place.
The outlet said Citi increased its Royal Enfield volume estimates by 3% to 7% for fiscal 2027 through 2029. It identified Eicher as Citi’s preferred two-wheeler manufacturer and Endurance Technologies as its preferred auto-parts company.
The reported outlook combines stronger sales expectations with concern about profitability. NDTV Profit and Business Upturn said Citi pointed to rural conditions, new products and retail purchases as supports for volumes, while citing commodity costs and competition as pressures on manufacturers’ margins. NDTV Profit said high valuations, capacity costs and weaker recent market-share performance weighed on Citi’s view of TVS Motor.
SIAM expects festival buying to support demand in the near term, though it said year-over-year growth rates may ease as sales are compared with a stronger period last year.
