The Indian two-wheeler (2W) industry has scripted a strong comeback in calendar year 2025. For the first time since the pandemic slowdown, domestic sales have crossed the 2 crore (20 million) mark, closing the year at approximately 20.50 million units.
This translates to a 4.9%–7% year-on-year growth, depending on whether registration or dispatch data is considered. While still marginally below the all-time peak of 21 million units in 2018, the industry has clearly entered a fresh growth cycle heading into 2026.
Table of Contents
1. Domestic Sales: A Policy-Led Recovery
The biggest turnaround came in the second half of 2025, driven largely by GST 2.0 reforms.
GST 2.0 Impact
- GST on motorcycles and scooters up to 350cc reduced from 28% to 18%
- Improved affordability for middle-class and first-time buyers
- Immediate price correction across commuter and premium segments
Key Domestic Trends
- Urban Growth Leads: Cities and tier-2 towns drove most of the volume
- Scooters Grow Faster: Scooter demand grew quicker than motorcycles in urban markets
- Festive Record: October–December (Q3) became the strongest quarter ever, with 5.70 million units sold
- Rural Stability: Good monsoons and farm income kept rural demand steady, though urban India led growth
2. Exports: India’s Global Two-Wheeler Boom
Exports were the standout performer of 2025.
Export Highlights
- 4.94 million units exported – an all-time high
- 24.2% year-on-year growth
- Strong recovery in:
- African markets
- South Asia
- Latin America
India continues to strengthen its position as the global hub for affordable motorcycles and scooters.
3. Brand-Wise Snapshot: Winners & Momentum
| Manufacturer | 2025 Volume | Market Status |
|---|---|---|
| Hero MotoCorp | 57.5 lakh | Market leader; modest ~2% growth |
| TVS Motor Co. | 39.8 lakh | Fastest growth at 15.7% |
| Honda (HMSI) | — | Gap with Hero widened to 8.51 lakh units |
| Royal Enfield | 10+ lakh | Expected to cross 1 million annual sales |
| Suzuki | — | Strong double-digit growth (Access, Burgman) |
TVS emerged as the growth champion, while Royal Enfield continued to dominate the mid-capacity premium segment.
4. Major Market Shifts in 2025
Move Beyond 110cc
- Strong pivot toward 125cc+ motorcycles
- Premium scooters gained traction in cities
Alternative Fuels & Convenience
- Growing interest in CNG two-wheelers
- Automatic and AMT-style convenience becoming more important
Premiumisation Trend
- Rising demand for:
- Adventure motorcycles
- 300cc–500cc middleweights
- Market gradually moving away from pure “commuter-only” focus
2026 Outlook: Can India Beat the 2018 Record?
With:
- Strong export momentum
- Expected repo rate cuts
- Income tax relief boosting disposable income
- Multiple EV and ADV launches lined up
2026 could finally see India surpass its 2018 peak of 21 million two-wheelers.
Entry-level electric scooters and premium motorcycles are expected to be the biggest growth drivers going forward.
GadiGarage Verdict
Crossing 2 crore two-wheeler sales isn’t just a recovery milestone — it signals a structural reset for the Indian market. With better pricing, stronger exports, and shifting buyer preferences, the industry is entering a healthier, more diversified phase.
So, what are you watching in 2026 — electric scooters finally overtaking 110cc commuters, or the continued rise of premium motorcycles?
Tell us your thoughts in the comments below!
