 "Two wheelers")
After a tepid start to 2025-26 (FY26), two-wheeler (2W) majors posted double-digit year-on-year growth in May. Leading 2W manufacturers like Bajaj Auto, Eicher Motors (Royal Enfield), TVS Motor Company, Hero MotoCorp, and Suzuki Motorcycle India all recorded an increase in domestic sales compared to May 2024. Meanwhile, Honda Motorcycles & Scooters India (HMSI) reported a muted performance for the month.
“The 2W market grew in May due to the convergence of rural sentiment, pre-monsoon demand, and higher export allocations,” said Nikhil Dhaka, vice-president, Primus Partners.
Analysts estimate a 4-7 per cent rise in FY26, driven by product innovation, supportive policy frameworks, and growing mobility needs in emerging markets. While challenges such as price sensitivity and financing constraints may arise in some segments, the overall outlook remains positive.
The relative slowdown in April was in line with expectations, as major players like Hero, Bajaj, and HMSI posted double-digit domestic sales declines, hit by weak rural demand and price hikes following new On-Board Diagnostics Phase 2B (OBD-2B) norms. While brands like Enfield, TVS, and Suzuki saw modest gains, dealers remain cautious amid rising regulatory costs, soft rural sentiment, and intensifying competition from electric 2Ws.
Reviving its performance after months of declining sales, Bajaj posted a 2 per cent increase in domestic sales for May, selling 191,412 units compared to 188,340 in May 2024.
Analysts believe Bajaj benefited from strong wedding season demand in rural markets. The company’s refreshed portfolio in the 125cc+ motorcycle segment also gained traction among urban commuters.
TVS extended its growth streak with a 14 per cent rise in May sales, moving 309,287 units versus 271,140 in May 2024. Motorcycle sales surged 22 per cent, from 173,627 to 211,505 units, while scooter sales climbed 15 per cent to 166,749 units, up from 145,305 last May.
Enfield followed with a 19 per cent jump, selling 75,820 units in May 2025 compared to 63,531 a year earlier.
Hero posted a modest 2 per cent gain, with domestic sales of 488,997 units this May, up from 479,450 last year.
Suzuki Motorcycle India, the two-wheeler arm of Suzuki Motor Corporation, Japan, recorded a 17 per cent increase, selling 107,780 units in May 2025 against 92,032 in May 2024.
In contrast, HMSI’s sales fell 7 per cent to 417,256 units from 450,589 a year ago.
Exports for all manufacturers remained robust, with most recording double-digit growth.
The calendar year has seen fluctuations. In January, companies like Enfield, TVS, and Suzuki posted higher domestic sales, while Hero and Bajaj registered muted growth — a trend ascribed more to tactical factors like inventory and discounting strategies than structural shifts.
February continued this mixed trend, with Enfield and TVS growing, but Hero, Bajaj, and Suzuki showing flat performance. Analysts observed that the commuter segment, despite high volumes, is reaching maturity, with value growth now driven by consumer upgrades. March saw a stronger showing, with most major players — except Bajaj — recording double-digit growth.
The Federation of Automobile Dealers Associations’ outlook for the 2W segment remains cautiously optimistic, with recent growth in retail volumes signalling a stable demand environment. Rural sentiment is expected to stay positive, backed by a successful rabi harvest, strong crop yields, healthy reservoir levels, and a favourable monsoon forecast. The wedding season is also likely to continue supporting demand in these areas.
In urban markets, demand is expected to hold firm, driven by model launches. However, challenges such as high financing costs and price hikes due to OBD-2B regulations may continue to act as headwinds in certain pockets.
