SIAM Auto Sales Data Of FY25 Reveals 9.1 Per Cent Year-on-Year Growth Of Two-Wheeler Sales

The Indian two-wheeler market has demonstrated robust performance in FY25. The market achieved sales of 19.6 million units and registered a healthy growth rate of 9.1 per cent compared to the previous fiscal year. This positive momentum can be attributed to improved rural demand and renewed consumer confidence across the country.

Scooters have emerged as a particularly strong segment, driving overall market growth thanks to better rural and semi-urban connectivity, along with the introduction of newer models featuring enhanced capabilities. 

Honda recorded an 81% sales surge in March 2024, crossed the 8 million sales mark in East India, and saw its popular Activa model exceed 4 million sales in Gujarat alone. The company has narrowed the gap with market leader Hero MotoCorp to just 60,000 units—the closest margin ever recorded between the two rivals. While Suzuki achieved its best-ever financial year performance in India, surpassing the 100,000 sales mark. Suzuki's Access 125 scooter also celebrated crossing 6 million sales.

Within the domestic market, several key trends have emerged. Commuter motorcycles have seen renewed interest which was mainly spearheaded by Hero MotoCorp again. The Indian two-wheeler giant registered an impressive 34.7 per cent sales at the start of last year, plus a further impressive 18 per cent growth during the festive season.  Even, the premium motorcycle segment outperformed from last year wherein the industry registered double-digit growth. This was particularly evident in Royal Enfield’s sales last year. After an aggressive product launch strategy in 2024, the brand finally crossed the 1 million annual sales mark for the first time. 

Another major development in this segment was the increase in the adoption of electric vehicles. Electric two-wheelers now represent over 6 per cent of total two-wheeler sales in FY25. This is pretty impressive considering the subsidy rate was reduced last year with the introduction of the new PM E-Drive scheme. Riding high on this trend are legacy manufacturers Bajaj Auto and TVS Motor Company. Both are leading the electric two-wheeler race in the country, pushing Ola Electric down to third for the past couple of months. 

Export performance was also equally impressive last year. SIAM reports that two-wheeler exports grew by 21.4 per cent year-on-year, reaching 4.2 million units. This export growth was fuelled by the introduction of new models, expansion into fresh markets, economic stability returning to African regions, and sustained demand from Latin America. For example, Ultraviolette Automotive heading to Europe, and Bajaj Auto establishing a new factory in Brazil. 

Looking ahead, the two-wheeler market is poised for further growth with several exciting developments on the horizon. Hero MotoCorp still has a couple of launches pending this year which includes the likes of the Hero Karizma XMR 250 and the bigger XPulse 421. Honda finally debuted in the EV space with the new QC1 and Activa e:, and both are expected to further boost the sales of the Japanese company. Similarly, Suzuki is also gearing up to launch its first electric scooter, the e-Access too. However, market volatility, along with potential challenges from below-average monsoon rainfall and farm production, could impact future growth. But by how much and will that affect sales significantly, is something that remains to be seen.