New Delhi, Feb. 20 -- India's two-wheeler industry is projected to grow 7-9 per cent in fiscal 2027, with volumes reaching around 29 million units, according to a Crisil report.

The domestic market will remain the main growth driver, supported by improved affordability post-GST rationalisation, while exports are expected to outpace domestic growth for the third consecutive year.

According to the report, the revenue growth is expected to largely be volume-led, with premiumisation providing incremental support. Operating margins are expected to hold around 16 per cent, as operating leverage offsets higher commodity costs. Strong profitability should fund planned capital expenditure of ~Rs 6,000 crore in FY27 while maintaining low leverage...