Sun Feb 22 09:26:26 UTC 2026: ### Headline: TVS Motor CEO Predicts Strong Two-Wheeler Industry Growth Fueled by GST Rate Cut and Infrastructure Development

The Story:

TVS Motor Company CEO K.N. Radhakrishnan projects a robust future for the Indian two-wheeler industry, anticipating an 8-9% Compound Annual Growth Rate (CAGR) in the long term. This optimistic forecast stems from the positive impact of the GST rate cut, increased government spending on infrastructure, and overall economic growth. Radhakrishnan expects the first half of the next fiscal year to be particularly strong due to the continued benefits of the GST reduction, with potential Q4 growth exceeding 15%.

The CEO highlighted improved road connectivity in rural and urban areas, coupled with challenges in public transportation, as key drivers for personal mobility, particularly two-wheelers. He also emphasized the affordability and utility of two-wheelers for the significant self-employed population in India. While FY26 saw initial growth of only 2%, Radhakrishnan anticipates the year will conclude with around 9% overall growth.

Key Points:

  • TVS Motor Company CEO K.N. Radhakrishnan forecasts 8-9% CAGR for the two-wheeler industry in the long term.
  • The GST rate cut, implemented on September 22, 2025, is a major growth driver.
  • Improved road connectivity and challenges in public transport are boosting personal mobility demand.
  • Two-wheelers are particularly appealing to the self-employed population due to affordability and utility.
  • Q4 growth is projected to exceed 15%, with overall FY26 growth expected around 9%.

Key Takeaways:

  • Government policies like the GST rate cut are significantly impacting the automotive sector.
  • Infrastructure development plays a crucial role in driving demand for personal transportation.
  • The affordability and practicality of two-wheelers make them a key mode of transport for a large segment of the Indian population.
  • The two-wheeler industry is expected to see robust growth in the coming fiscal year.
  • The self-employed demographic is a significant consumer base for the two-wheeler market.

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