Indian Motorcycle Industry Faces Challenging Start to FY2026

After a solid performance in FY2025, the Indian motorcycle industry has entered FY2026 on a weaker note, with sales declining 9.2% year-on-year in the April–June quarter, according to data from the Society of Indian Automobile Manufacturers (SIAM).

The industry dispatched 2.90 million motorcycles to dealerships in Q1 FY26, down from 3.19 million units in the same period last year. The decline is largely attributed to inventory correction and weakening demand in the affordable commuter motorcycle segment, which continues to form the backbone of two-wheeler sales in India.

This slump has also dragged down overall two-wheeler wholesales — including scooters and mopeds — to 4.67 million units, reflecting a 6.2% decline year-on-year.

Commuter Segment Bears the Brunt

The sharpest impact was seen in the 75–100cc commuter category, where dispatches fell 13% to 1.3 million units. Hero MotoCorp — the market leader — saw its sales dip 8.63%, while Bajaj Auto suffered a sharper fall of 24%. Honda Motorcycle & Scooter India (HMSI) recorded the steepest decline among major players in this segment at 55%.

In the 100–125cc segment, which typically includes models like Honda's Shine, overall dispatches declined 6% to 860,333 units. Notably, the Shine defied market trends, recording 11% growth and further solidifying its position as Honda’s bestselling motorcycle.

The 125–150cc category, which bridges commuter and entry-level sporty offerings, saw the steepest contraction of 37%, falling from 174,934 units last year to 110,299 units this quarter.

Premium Segments Hold Ground, TVS and Royal Enfield Shine

Higher-capacity motorcycles fared better in comparison, indicating a gradual consumer shift toward aspirational, feature-rich bikes:

• The 150–200cc segment dipped just 2% to 327,744 units. TVS Motor Company led the charge, with its Apache RTR series growing 13% to 136,118 units, giving it a commanding 41% market share in the segment.
• The 200–250cc category registered 8% growth to 38,157 units, propelled by the strong performance of the TVS Ronin, which saw a 157% spike to 14,530 units.
• The 250–350cc category posted the highest growth of 13%, reaching 220,038 units. Royal Enfield dominated with a staggering 95% market share, driven by sustained demand for the Classic 350 and Meteor 350.

These trends suggest that while price-sensitive buyers are pulling back, premium motorcycle segments remain resilient, fueled by aspirational buying and brand loyalty.

Most OEMs See Downturn; Hope Rests on Festive Season and Rural Demand

Of the ten major motorcycle manufacturers in India, seven reported lower sales during the quarter. Industry leaders have cited a dip in rural demand, where budget bikes remain the vehicle of choice. However, there is cautious optimism going forward.

According to SIAM, a strong monsoon season could aid rural income recovery, directly benefiting demand for commuter motorcycles. Moreover, the Reserve Bank of India’s recent rate cuts — totaling 100 basis points over the last six months — are expected to ease retail finance, making two-wheeler loans more affordable.

The industry is now looking to the July–September quarter, which includes the festive season, traditionally a strong period for sales.

FY2025 Context

This slowdown follows a relatively positive FY2025, when the motorcycle segment clocked 12.25 million unit sales, marking 5.1% growth for the full year. While momentum has faltered in early FY2026, industry watchers believe the upcoming quarters — supported by favourable macroeconomic cues and product refreshes — could steady the ship.

“The industry is undergoing a cyclical correction, particularly in the commuter segment, but we expect gradual revival in rural markets and a push from premiumization to offset some of the short-term weakness,” an SIAM official noted.

With the motorcycle market facing pressure at the entry level and opportunity at the top end, manufacturers are recalibrating strategies across segments, hoping that festive demand, economic stability, and easing loan terms will help the industry regain traction in the months ahead.