New Delhi, Jan. 29 -- The two-wheeler (2W) industry has seen a slowdown in growth over recent months, however, analysts expect the sector to expand at a high-single-digit rate in FY26, according to HSBC Global research report.

The past decade's compounded annual growth rate (CAGR) of the two-wheeler segment remains below 3 per cent, making it one of the slowest-growing segments in the automobile industry.

Electrification in the 2W segment has been progressing slowly, despite substantial government incentives. HSBC noted that urban demand for economy motorcycles has been impacted the most due to the rising popularity of electric scooters.

These e-scooters are becoming more favourable in urban areas, where better roads, improved charging...