The two-wheeler industry in India is expected to sustain a steady volume growth rate of around seven to nine percent in FY2024-25 as far as the domestic market as well as the export markets are concerned. 

The growth in FY2024-25 is expected to be driven by higher electric vehicle (EV) penetration in the market, according to a report released by CareEdge Ratings. A big catalyst in higher EV penetration in the market is going to be the Electric Mobility Promotion Scheme 2024 (though only till July 2024 and likely to get an extension), expectation of interest rate cuts in second half of FY2024-25, strong demand for new model launches, recovery in exports from its low base of FY2023-24 and favourable monsoon which would improve rural consumer sentiment and income levels. 

Pointing out at a combination of factors behind the growth of two-wheelers in such as traction in EV volumes, wider range of models and new launches, the report highlights a robust double-digit growth pace in each of the two quarters that ended on March 2024 on a year-on-year basis in FY2023-24, the report states the restriction in the automotive segment growth in the first half of FY2023-24 was on account of the increase in vehicle prices post the implementation of the phase-II of the BS VI emission norms, higher interest rates and stressed rural incomes. Sales revived in the second half of the respective fiscal on the back of festive season demand and uptick in rural sentiments.

“Post-covid, sales volume of two-wheelers had consistently declined during FY20, FY21 and FY22 before starting to recover from FY23, with sales momentum continuing in FY24 as well. CareEdge Ratings anticipates two-wheeler sales volume growth to continue in FY25 and it would be more driven by improved domestic sales, higher EV sales, launch of CNG powered two-wheelers and good traction in executive and premium segment motorcycles.” said Hardik Shah, Director, CareEdge Ratings.

In FY2022-23, the Indian two-wheeler industry recorded sales of 19.51 million units, an eight percent growth compared to the previous fiscal year’s 18.01 million units. In FY2023-24, the industry continued its upward trajectory, achieving 9.8 percent growth with a total sales volume of 21.43 million units. However, this was still short of the peak sales volume recorded in FY19 when annual sales volume had reached 24.46 million units, as per the report.

In FY2023-24, the domestic two-wheeler industry witnessed total sales volume of 17.97 million units, reflecting a growth rate of 13 percent. Exports volume experienced a decline of five percent even though it recovered from the low of FY2022-23. The decline in exports was attributed to challenges in the African markets, which traditionally accounted for a significant portion of India’s two-wheeler exports. 

EVs propel two-wheeler growth 

The overall volume growth in FY2022-23 and FY2023-24 was supported by the increasing demand for electric two-wheelers, according to the CareEdge Ratings report. In FY2022-23, electric two-wheeler sales reached approximately 0.73 million units, accounting for 4.54 percent of total two-wheeler sales (compared to 1.87 percent in the previous year), reflecting a remarkable year-on-year growth of 188 percent albeit on a low base. 

Continuing the positive trend, electric two-wheeler sales grew by around 30 percent in FY2023-24 surpassing volume of 0.94 million units. The demand for electric two-wheelers is driven by a shift in consumer preferences towards options that offer lower fuel costs, reduced maintenance, and lower servicing requirements compared to internal combustion engine (ICE) models. The government’s FAME II programme – till FY2023-24 – has made EV ownership more affordable, thereby contributing to volume growth.

The Indian Government’s newly introduced Electric Mobility Promotion Scheme 2024 (EMPS 2024) has continued to bolster electric two-wheeler sales in FY2024-25 – that is until July 2024. Despite the higher initial cost of electric two-wheelers, consumers are increasingly making the switch to EVs, the report pin points.

Segment wise, motorcycles have consistently dominated the market, contributing to majority of the two-wheeler sales. Sales volumes of motorcycles grew by eight percent in FY2023-24 and that of scooters grew by 13 percent during the respective period. This segment-wise growth trend is expected to continue in FY2024-25. 

With motorcycles continuing to be popular due to their superior fuel efficiency, cost-effectiveness, and versatility, scooters have also gained traction among urban commuters. 

Image for representative purpose only.

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Honda Motorcycle & Scooter India, a leading two-wheeler manufacturer, has reported wholesales of 568,164 units in September, which was 3 percent lower than 583,633 units sold last year.

The company’s domestic sales came at 505,693 units, down 6 percent, as compared to 536,391 units, while exports came at 62,471 units, up 32 percent YoY.

For H1 FY2026 (April–September 2025), HMSI's cumulative total sales reached just under three million units at 2.99 million units. This comprised 2.67 million units in the domestic market and 311,517 units exported globally.

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Hero MotoCorp, the world’s largest two-wheeler manufacturer, has reported its wholesales for September 2025 and YTD FY2026.

The company sold a total of 687,220 two-wheelers in September, which marked a 7.87 percent as compared to 637,050 units last year. This included 626,217 motorcycles, up 4.8 percent YoY and 61,003 scooters, up 54 percent YoY. On the exports front, the company shipped 39,638 units, as compared to 20,344 units last year.

The strong monthly performance contributed to steady growth, a trend rooted in the strategic diversification of the product portfolio, including 12 new scooters and motorcycles launched since the last festive season. The month’s dispatch performance coincided with a major milestone: Hero MotoCorp became the first Indian company to surpass the 125 million cumulative two-wheeler production mark.

Hero MotoCorp stated that positive momentum is visible across the business. Showroom and dealership footfalls have more than doubled compared to the festive season last year, driven by the festive spirit and new GST benefits, with significant traction observed in the high-volume commuter segment.

The company’s electric vehicle business, Vida, powered by Hero, continued its strong growth trajectory, recording 12,736 VAHAN registrations in September 2025. This performance, led by the recently launched Vida VX2 Evooter, resulted in a sharp YoY EV market share rise from 4.7 percent to 12.2 percent, underscoring growing consumer trust in the brand. The company noted that demand for Vida currently remains ahead of supply in several key markets, indicating robust traction for its EV business this festive season.

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Suzuki Motorcycle India (SMIPL), one of the leading two-wheeler manufacturers, has reported strong sales for September 2025, buoyed by the start of the festive season and recent tax reforms.

The two-wheeler subsidiary of Suzuki Motor Corporation, Japan, recorded total sales of 123,550 units, marking 25 percent over the 99,185 units sold in September 2024.

Domestic sales were the primary growth driver, with SMIPL registering a robust 37 percent YoY growth with 105,886 units sold in September, up from 77,263 units in the same month last year.

Deepak Mutreja, Vice-President – Sales & Marketing, Suzuki Motorcycle India, said, “September has been a remarkable month for SMIPL. The festive cheer translated into strong demand driving 37 percent growth in our domestic sales. The recent GST reduction has further added to customer enthusiasm, by making our two-wheelers even more affordable. We are optimistic that this momentum will continue through the festive season and beyond, enabling us to serve a larger customer base with our trusted motorcycles and scooters.”

Further complementing the sales performance, SMIPL recorded its highest ever spare parts sale of INR 881 million for the third consecutive month, registering a 17 percent YoY growth.

While domestic sales soared, exports saw a reduction. SMIPL exported 17,664 units in September 2025, compared to 21,922 units exported during September 2024.

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Royal Enfield has announced its highest-ever monthly sales figure, with 124,328 motorcycles sold globally in September 2025. This marks a significant 43 percent growth compared to the 86,978 units sold in the same month last year.

Domestic sales drove the record performance, reaching 113,573 units in September 2025, which marked a 43 percent increase over the 79,325 units sold domestically last year.

B. Govindarajan, Managing Director, Eicher Motors and Chief Executive Officer, Royal Enfield, said, “It has been an incredible start to the festive season for us at Royal Enfield, we have registered our best ever monthly sales volume and have crossed 100,000+ retail volumes for the month. To make sure that our customers take home their favourite Royal Enfield motorcycle this festive season, we have put in considerable effort.”

"In the month of September, we announced the upgraded Meteor 350 which has received a promising response from our community. All our new and existing motorcycles continue to perform well, we are confident of the growth momentum and are looking forward to a great year ahead,” he added.

For H1 FY2026, the company's total sales volume reached 591,903 motorcycles, reflecting a 30 percent growth over the 454,780 units sold in the previous year. This includes 521,482 units in the domestic market, registering a 27 percent growth compared to the 410,843 units sold in the corresponding period last year.

On the exports front, the company also saw a major boost, with 10,755 motorcycles shipped in September 2025, a 41 percent  increase from 7,653 units in September 2024. For H1 FY2026, exports surged by 60 percent, reaching 70,421 units.

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