Gabriel India Limited 2W sales outpace market; PV growth trails

Gabriel India Limited, referred to as GIL, reported 25.4% year-on-year growth in two- and three-wheeler suspension sales in H1 FY27, above the 19.5% increase in two-wheeler industry production. Its passenger-vehicle sales rose 7.3%, versus 21% passenger-vehicle industry growth, showing different momentum across its largest suspension segments.

How did GIL’s suspension segments perform in H1 FY27?

GIL’s 2W/3W segment, including aftermarket sales, grew 25.4% year on year in H1 FY27 and was its largest reported business, contributing 66% of total sales. The company reported a 33% market share in the segment and attributed growth to strong demand from key customers including TVS, Honda Motorcycle and Scooters India and Yamaha.

Passenger-vehicle, or PV, sales increased 7.3% in H1 FY27, contributing 21% of total sales, while GIL reported a 20% market share. Commercial-vehicle, or CV, sales, including aftermarket and railways, rose 12.8% and contributed 12% of sales; this segment had a reported 88% market share. The balance of sales contribution represented trading revenue.

GIL’s combined 2W/3W growth exceeded the 19.5% two-wheeler production increase but was below 30.5% growth in three-wheeler production. The comparison is not fully like for like because GIL’s segment includes aftermarket revenue, while the Society of Indian Automobile Manufacturers, or SIAM, figures cited in the presentation measure industry production. GIL’s CV growth also trailed the 24.7% industry increase.

Why did GIL’s 2W/3W sales grow faster than two-wheeler production?

GIL said strong demand from key customers drove its 25.4% 2W/3W sales increase in H1 FY27. Within the two-wheeler industry, scooter production rose 31.4% year on year, compared with 13.6% growth for motorcycles and 20.8% for mopeds. These figures show that scooter production grew faster than the 19.5% overall two-wheeler production rate.

GIL disclosed start of production, or SOP, with Classic Legends and Piaggio, and letters of intent from River Mobility, Ultraviolette and Piaggio. These programmes sit alongside its established 2W/3W customer list of TVS, Honda Motorcycle and Scooters India and Yamaha. The presentation does not quantify revenue from individual SOPs or letters of intent.

Electric two- and three-wheelers were another disclosed exposure. GIL reported 61% market share in electric two-wheelers, or E2Ws, in H1 FY27, while electric two- and three-wheelers together generated 11% of 2W/3W segment revenue. The presentation identifies TVS, Ola and Ather as 2W/3W electric-vehicle players, but gives no separate sales value for those customer relationships.

Why did GIL’s passenger-vehicle sales trail industry growth?

GIL’s PV sales trailed the industry because its 7.3% growth was mainly supported by traction in small cars, while industry growth was led by utility vehicles. SIAM data showed PV production growth of 21% in H1 FY27, comprising 25.2% growth in utility vehicles, 14.2% in cars and 9.3% in vans. GIL described its PV supplies to original equipment manufacturers, or OEMs, as consistent.

The difference between GIL’s 7.3% PV sales growth and the industry’s 21% increase was 13.7 percentage points in H1 FY27. GIL nevertheless reported that utility vehicles and SUV-coupes represented 66% of its PV business sales, and that its share of business in total utility-vehicle sales was 24%. Its listed PV customers included Maruti Suzuki India, Mahindra & Mahindra and Skoda Volkswagen.

The presentation does not explain why GIL’s 66% utility-vehicle mix did not yield growth closer to the 25.2% industry rate for utility vehicles. It also does not split GIL’s PV sales change among utility vehicles, cars, vans and aftermarket activity. The disclosed data therefore establish the growth gap but not a specific underlying cause beyond the stated small-car traction.

What is GIL doing in the suspension aftermarket?

GIL is adding products and extending distribution in its suspension aftermarket. In H1 FY27, it launched wiper blades for passenger cars and three-wheelers and introduced 100 stock-keeping units, or SKUs. Management identified B- and C-class towns as a major focus and named Latin America, Australia and Africa as markets for export growth.

Aftermarket sales increased from Rs 38.76 crore in FY23 to Rs 48.70 crore in FY26, which GIL described as a 7.9% compound annual growth rate, or CAGR. H1 FY27 sales were Rs 23.91 crore. Shox and struts comprised 87% of aftermarket product mix, while allied products comprised 13%, keeping suspension products as the predominant category.

GIL expanded its business-partner count by 44, from 829 in FY26 to 873 in H1 FY27, while the retailer base remained at 30,000 in both periods. The 100 SKU launches in H1 FY27 were below 249 in full-year FY26 and 301 in FY24, although the presentation gives no comparable H1 FY26 figure. Aftermarket accounted for 45% of year-to-date export composition, compared with 55% for OEM business.

Conclusion

GIL’s H1 FY27 data show that its largest suspension segment, 2W/3W, grew 25.4% and outpaced the 19.5% two-wheeler production increase. PV and CV sales did not match their respective industry growth rates: PV sales rose 7.3% against 21% industry growth, while CV sales increased 12.8% against 24.7%.

The next disclosed execution points are SOPs with Classic Legends and Piaggio, letters of intent from River Mobility, Ultraviolette and Piaggio, and the development of E2W/E3W revenue, which was 11% of 2W/3W segment sales in H1 FY27. In PVs, the relevant measures will include GIL’s 66% utility-vehicle mix and its 24% share of business in utility-vehicle sales.