The Indian two-wheeler industry experienced a bumpy start to FY2026, with overall motorcycle sales declining by 9.2% year-on-year (YoY) in the first quarter ending June 2025. According to the Society of Indian Automobile Manufacturers (SIAM), this downturn is primarily due to inventory corrections and shifting market dynamics, with a notable consumer trend moving away from budget commuter bikes towards more premium and performance-oriented models.
Sub-200cc Commuter Bikes See Steep Decline
The entry-level 100cc commuter segment, long dominated by reliable and fuel-efficient models, saw a significant 13% YoY drop, with 13,06,541 units sold in Q1 FY2026 — a decline of nearly 2 lakh units compared to the previous year.
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Hero MotoCorp, the market leader, sold 10,91,460 units (HF Deluxe, Passion, Splendor), but even this strong showing marks an 8.63% decline YoY.
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Bajaj Auto, with 94,618 units (Platina 100), witnessed a sharp 24% dip.
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Honda Motorcycle & Scooter India fared the worst among top players, seeing a massive 55% drop, selling only 49,318 Shine 100 bikes.
The slightly larger 100-125cc commuter category, often preferred for city commutes, also declined by 6% YoY, down to 8.6 lakh units. However, Honda bucked the trend, recording an 11% increase with 4,32,580 units of the Shine 125 and SP 125, retaining its lead in this segment.
In contrast:
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Bajaj Auto’s sales (2,11,559 units) dipped 6%, including the Pulsar 125 and the Freedom CNG bike.
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Hero MotoCorp faced a severe 39% decline, with only 1,10,282 units sold across its Glamour, Super Splendor, and Xtreme 125R models.
125-150cc Segment Hit Hardest
The 125-150cc motorcycle category experienced the steepest drop, plummeting 37% YoY to 1,10,299 units in Q1 FY2026.
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Bajaj Auto, despite leading the segment with 47,054 Pulsar models, was down 44%.
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Yamaha, the second-largest player with 37,228 FZs sold, saw a 7% dip.
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Honda’s Unicorn, once a strong performer, suffered a 49% sales drop, registering just 26,017 units.
150-200cc Bikes Gain Popularity
Interestingly, the 150-200cc segment showed resilience, declining only 2% YoY with total sales of 3,27,744 units. This reflects a growing trend of consumers upgrading to sportier, more powerful bikes.
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TVS Motor led the charge with a 13% increase, selling 1,36,118 Apache models, and capturing a 41% market share.
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Bajaj Auto grew 14% YoY, selling 74,431 units across its Pulsar, Avenger, and KTM line-up.
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Honda followed with 68,546 units sold (likely driven by the Hornet 2.0 and SP160), up 15% YoY.
Meanwhile:
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Yamaha saw a 48% drop with 36,467 MT-15 and R15 units sold.
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Hero MotoCorp experienced a sharp 41% decline, delivering only 8,834 units (Xpulse 200 and Xtreme 160).
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Suzuki’s Gixxer 150 sales also fell 10%, to 3,022 units.
200-250cc Category Shows Promise
The 200-250cc motorcycle segment showed signs of revival, growing 8% YoY to 38,157 units. A major contributor to this growth is the TVS Ronin, which clocked 14,530 units — a massive 157% rise compared to the same period last year.
TVS’s improved Ronin offerings, including fresh colours and feature updates, are resonating well with buyers. Despite this, Bajaj Auto’s combined portfolio in this category (Pulsar, Dominar, Avenger, Husqvarna, KTM) continues to dominate in volume with 21,513 units, albeit down 17% YoY.
Royal Enfield Dominates 250-350cc Segment
The 250-350cc premium bike segment surged 13% YoY with 2,20,038 units sold in Q1 FY2026. Unsurprisingly, Royal Enfield accounted for 95% of these sales, delivering a robust 2,08,659 units of its 350cc lineup, up 14% YoY.
This impressive performance cements Royal Enfield’s dominance in the mid-size motorcycle market, further solidifying its cult following and consistent demand.
What’s Next for the Two-Wheeler Market?
Despite a challenging Q1, the outlook for the rest of FY2026 remains cautiously optimistic, according to SIAM. Factors that may contribute to a recovery in the coming months include:
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The upcoming festive season, which traditionally boosts sales.
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An above-average monsoon, expected to aid rural incomes — a key driver for entry-level and commuter bike segments.
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Improved consumer sentiment and broader economic recovery could also steer momentum.
Key Takeaways
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Commuter segments (100cc to 125cc) are facing demand saturation and declining rural sales.
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Premium bikes (150cc and above) are gaining traction, driven by aspirational buyers upgrading their preferences.
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TVS and Royal Enfield are emerging as clear winners in the premium and mid-size segments respectively.
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The industry is shifting toward higher performance models, with demand patterns evolving faster than anticipated.
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