India’s two-wheeler market has delivered a strong performance in 2025, with total registrations crossing the 2 crore mark for the first time since the pandemic recovery phase. According to data from the Vahan portal, 2.02 crore two-wheelers were registered during the year, marking around 7 percent year-on-year growth over 2024.
For context, registrations stood at 1.892 crore units in 2024, underlining the steady rebound in consumer demand across both urban and rural markets.
Registrations Outpace Factory Dispatches
Between January and November 2025, registrations reached 1.897 crore units, while factory dispatches during the same period were lower at 1.808 crore units, translating to a modest 1.6 percent growth in wholesale volumes. This divergence suggests healthy retail demand, with OEMs maintaining cautious production and inventory levels.
As of December 30, registrations had already touched 2.02 crore units, and the final tally for 2025 is expected to edge slightly higher, as vehicle registration data typically trails actual retail sales by two to three days.
GST 2.0 Provides a Mid-Year Boost
A key catalyst for demand in the second half of 2025 was the GST 2.0 restructuring, which reduced the tax rate on motorcycles and scooters up to 350cc from 28 percent to 18 percent. The tax cut significantly improved affordability, particularly in the mass and mid-capacity segments.
Adding to this momentum were above-average monsoons, improved farm incomes and strong rural demand. The festive season further amplified volumes, with the industry reportedly recording all-time-high retail sales during key festive months.
Scooters Drive Market Expansion
Scooters emerged as the primary growth engine in 2025. Manufacturers with scooter-focused portfolios posted strong double-digit gains, helping offset relatively muted growth in entry-level motorcycles.
Among OEMs, TVS Motor and Suzuki stood out with robust scooter-led growth. Alongside them, Royal Enfield was the only major motorcycle-focused brand to record consistent growth during the January–November period. Royal Enfield’s annual volumes are also expected to cross the 1 million unit milestone in 2025.
Hero–Honda Gap Widens
The competitive landscape at the top also saw a notable shift. The sales gap between Hero MotoCorp and Honda widened to 8.51 lakh units during January–November 2025, compared to 6.89 lakh units in the same period last year.
This change reflects differing strategies: Hero focused on strengthening its presence in the 125cc-plus motorcycle and scooter segments, while Honda continued expanding its commuter motorcycle portfolio, aiming to defend volumes in the mass market.
Outlook for 2026
With structural tax reforms, improving rural sentiment and a growing preference for scooters, the two-wheeler industry appears well-positioned heading into 2026. While wholesale growth may remain measured, retail demand trends suggest that 2-crore-plus annual registrations could become the new normal for India’s two-wheeler market.
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