Two-Wheeler Sales Cross 10 Million Mark In H1; GST 2.0 To Help Achieve Record Sales in FY26?

The sales report for the first half of FY25-26 is out and it’s a mixed bag for the segment and the manufacturers. While overall sales see a rise of 0.7%, when one deep dives into segments, some worrisome trend unravels. In the first half of FY25-26, a total of 1,02,36,639 two-wheelers were sold in the country (compromising scooters, motorcycles and mopeds). In comparison, 1,01,64,980 units were retailed in H1 of FY24-25. The above sales performance has been the best since 2020 but in 2018 and 2019 overall sales were significantly higher. 

Scooters Lead The Charge

Demand for scooters has been increasing at a steady pace as its versatile nature and ease of use especially for urban commuting is fuelling its popularity. In fact in September, 2025, overall scooter sales stood at a record 7.33 lakh units. In the first half of FY25-26, total scooter sales stood at 37,21,709 units which is a significant 6.42% jump compared to the same time period last year. Scooters have been not only popular in the ICE segment but also dominating proceedings in the EV space as well with almost 95% market share. 

While scooter sales have improved, Honda’s scooter sales have fallen by 9% thereby affecting its overall sales. This should ring some warning bells for the Japanese brand as its scooter sales have been solid but its EV offerings have faltered. The biggest gainer in the scooter segment is Hero MotoCorp (32% sales increase), a brand which has traditionally struggled to make an impact in the scooter space, however, the new Xoom series and the Destini have been warmly accepted by consumers and even the Vida VX2 is gaining traction.

TVS with its news Jupiter 110 has tasted great sales success and also recently introduced the NTorq 150, its strategy of updating popular products and introducing new scooters has paid dividends in the form of 27% sales growth. Suzuki too has performed well with an 11% jump in scooter sales but its compatriot Yamaha has witnessed a 6% sales drop and so did Bajaj with its Chetak electric scooter. However for Bajaj, the sales drop is courtesy the impact of the rare earth material shortage which affected production. 

Motorcycles Hit A Rough Patch

On to the other end of the spectrum, motorcycle sales slid by 2% and the major reason for this is Hero MotoCorp and Honda. The two biggest players of the Indian two-wheeler market witnessed motorcycle sales dropping by 4% respectively, which had a huge impact as they commanded 62% of the overall sales. Even Bajaj Auto hasn’t had a good outing as sales fell by 8%, the above is very concerning for the brand as it’s a motorcycle-focused brand and despite launching new products, sales momentum hasn't picked up. Even the Bajaj Freedom CNG bike has been a failure despite the benefits of lower running costs, the scarcity of CNG pumps have had an impact on its sales. 

The Japanese duo of Suzuki and Yamaha aren't competing in the commuter segment, and have witnessed a sales drop of 37% and 18% respectively. Suzuki’s motorcycle portfolio has been stagnant over the past few years and for Yamaha despite introducing new products sales momentum hasn’t picked up. Maybe the introduction of the Yamaha XSR 155 might help it to improve sales in the second half of the year. 

Among all the sales drop, TVS has managed to improve motorcycle sales by 9% as it retailed 6.83 lakh units. The TVS Apache series have performed very well and so did the TVS Raider. In general, the 125 cc segment has been performing strongly as it offers a good balance of performance, mileage and styling. Royal Enfield had a stellar year as sales ballooned by an impressive 27%. The Classic 350 continues to lead the charge, but the Hunter 350 played a crucial role in improving sales with its affordable pricing and accessible nature. Even the 650 Twin despite its premium pricing have been the leaders of the segment in a dominant manner. 

GST’s Ray Of Hope

However it should be noted that the above sales are largely without the GST cut and this will have a big impact on the overall sales in the second half of the FY year. The above is even more crucial for motorcycles as the price drop is higher and the GST reduction could revive the falling motorcycle sales especially in the commuter segment. Even scooters have seen a price drop and FY25-26 could end with record scooter sales. 

Yes, bikes above 350 cc have become more expensive, but given how small the market share is for this displacement of bikes, overall impact on two-wheeler sales will be minor. So whether or not GST reductions will give motorcycles a huge boost and can overall two-wheeler sales come close to the 2018 and 2019 sales remains to be seen but the overall market sentiment does look positive.

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