Two-wheeler makers post strong May sales on resilient domestic demand

Inventory replenishment, resilient demand for premium models and stronger exports helped India's leading two-wheeler manufacturers record healthy growth in May

India's two-wheeler makers reported broad-based growth in May, driven by channel inventory replenishment, resilient demand for premium motorcycles and scooters, and a recovery in exports.

 

Four of the country's largest manufacturers — TVS Motor Company, Royal Enfield, Hero MotoCorp and Honda Motorcycle & Scooter India (HMSI) — posted double-digit growth in domestic dispatches during the month, while Bajaj Auto and Suzuki Motorcycle India reported single-digit gains.

 

Analysts said wholesale volumes continued to outpace retail sales, aided by inventory replenishment at dealerships. Arun Agarwal, vice-president, fundamental research, Kotak Securities, said domestic two-wheeler wholesale volumes registered double-digit growth, supported by channel inventory replenishment. Retail sales of internal combustion engine (ICE) two-wheelers grew at a slower pace due to a high base effect from the previous year, while electric two-wheeler retail sales continued to post strong year-on-year growth.

   

Exports also remained a key growth driver for the industry in May, with most manufacturers reporting healthy gains in overseas shipments. Hero MotoCorp's exports surged 78 per cent year-on-year to 33,284 units from 18,704 units a year earlier. TVS Motor's two-wheeler exports rose 48 per cent to 158,546 units, while Bajaj Auto, traditionally India's largest two-wheeler exporter, recorded a 30 per cent increase to 183,676 units. Suzuki Motorcycle India reported a 5 per cent rise in exports to 22,216 units from 21,117 units in May 2025. Royal Enfield was the exception, with exports declining 33 per cent year-on-year to 9,116 units from 13,609 units a year earlier.

 

TVS Motor led the industry's growth trajectory, with domestic two-wheeler dispatches rising 24 per cent year-on-year to 384,565 units in May 2026 from 309,287 units a year earlier. The company's overall motorcycle sales, including exports, rose 30 per cent to 273,802 units, while scooter sales increased 32 per cent to 220,740 units. Electric vehicle sales grew 56 per cent to 43,632 units.

 

Premium motorcycles continued to be a bright spot for the industry. Royal Enfield's domestic sales rose 24 per cent year-on-year to 94,115 units in May from 75,820 units in the corresponding month last year.

 

"We are carrying our momentum into FY27 with continued growth in Q1, despite the prevailing macro headwinds. This month was exciting for us as we strengthened our product portfolio with the launch of the Bullet 650," said B Govindarajan, chief executive officer, Royal Enfield.

 

Govindarajan added that the company had announced plans for a new manufacturing facility in Andhra Pradesh to support its long-term growth ambitions and continued expansion in international markets.

 

Hero MotoCorp, the country's largest two-wheeler manufacturer, reported a 10 per cent increase in domestic wholesales to 536,784 units. The company attributed the growth to strong demand in the Deluxe 125cc, premium motorcycle and scooter segments, all of which recorded double-digit growth.

 

HMSI also posted double-digit growth, with domestic sales rising 10 per cent year-on-year to 459,611 units from 417,250 units a year ago.

 

Bajaj Auto and Suzuki Motorcycle India reported relatively modest gains in the domestic market. Bajaj Auto's domestic two-wheeler sales increased 9 per cent to 209,528 units from 191,412 units in May 2025.

 

Suzuki Motorcycle India recorded its highest-ever monthly domestic sales, with dispatches rising 2 per cent year-on-year to 110,028 units from 107,780 units in the year-ago period.