Purpose: The purpose of this paper is to explore the rationale for the lack of growth in the two-wheeler service sector despite an exponential growth in the number of two-wheelers on Indian roads. Design/methodology/approach: The data of a premier manufacturer were gathered to develop a system dynamics model. Policy experimentation was carried out after validating the model. Findings: The results corroborate that a mere increase in the number of facilities is inadequate for sustainable growth. Improving service quality is vital for sustainable growth of the service sector. Practical implications: The system dynamics model unveils facts that otherwise would remain obscured. It is very useful for real-world managers in carrying out policy experimentation to understand the effect of one variable on the other. Managers can design effective policies only through double-loop learning. Originality/value: The complexity of the system increases as the business grows. Managers need to adopt double-loop learning to achieve true growth in capacity, revenue, and the bottom line. The paper demonstrates the essence of double-loop learning in the two-wheeler service sector.