Two-wheeler makers end FY26 strong on rural recovery, premium demand

Two-wheeler makers post strong FY26 growth led by rural recovery, scooter demand and premium motorcycles, though FY27 outlook may soften amid global headwinds

Makers of two-wheelers in India ended FY26 on a strong note, reporting healthy growth in domestic wholesales, driven by a recovery in rural demand, robust scooter sales, and sustained traction in premium motorcycles.

 

Sales in March further reinforced the momentum, with most original equipment manufacturers posting double-digit growth, indicating a steady pickup in consumption.

 

Industry experts said that while volumes remained strong, underlying shifts in product quality and electrification were shaping the market’s trajectory. Against this, the outlook may dampen.

 

“Two-wheelers have recorded their highest sales in FY26. Significant progress has been made on quality, specifications, and electrification and while these aspects do not fully reflect in sales numbers, they do show up in value. Against this backdrop, even good performance in FY27 may appear muted, especially with geopolitical and economic headwinds expected in the coming fiscal,” added Anurag Singh, managing director, Primus Partners.

 

TVS Motor Company emerged as one of the top performers, registering a 23 per cent increase in sales at 5.6 million units.

 

The company’s domestic sales rose 25 per cent year-on-year in March to 498,134 units, led by strong demand for scooters and a sharp rise in sales of electric vehicles.

 

The company, based in South India, narrowed the gap with Honda Motorcycle & Scooter India.

 

The final pecking order cannot be estimated because Bajaj Auto is yet to release its numbers.

 

Honda Motorcycle & Scooter India reported an annual growth rate of 8 per cent, with domestic sales reaching 5.7 million units.

 

However, the company saw a strong annual closing, with domestic volumes in March jumping 29 per cent to 512,303 units, reflecting improved demand across categories.

 

Hero MotoCorp retained top slot as it closed FY26 with domestic volumes of over six million units, marking an increase of around 7 per cent compared to 5.6 million units last financial year.

 

Dispatches in March stood at 552,505 units, driven by continued strength in the entry-level 100-125cc segment, scooters, and growing traction in its electric-mobility business.

 

High-end bike maker Royal Enfield clocking its highest ever annual sales continued to benefit from sustained demand in the mid-size motorcycle segment, with domestic sales growing 23 per cent to 1.1 million units in FY26.

 

In March, the company recorded a 14 per cent increase in domestic volumes at 100,406 units, supported by its expanding portfolio and growing rider ecosystem.

 

B Govindarajan, chief executive officer, Royal Enfield, said: “We delivered our second consecutive year of over one million motorcycle sales, crossing 1.2 million units, our highest ever annual performance. This year we also achieved our best ever festival-season sales and highest ever volumes across both domestic and international markets.”

 

The company’s focus will be on building the international business, which remains a focus area where it is deepening its presence by building their operations in potential markets such as Brazil. 

 

Suzuki Motorcycle India posted a 12 per cent rise in domestic sales to 1.1 million units for the full year.

 

Performance in March remained largely flat at 105,397 units this year, compared to 105,976 units.

 

The industry’s performance in FY26 highlights a broadbased recovery in domestic demand, with rural markets, scooters and premium motorcycles acting as key growth drivers, while March sales signal a continued momentum heading into the new financial year.

 

However, the pace of growth in FY27 will likely depend on macroeconomic stability, rural income trends, and global factors.