Indian Two Wheeler Market FY 2025

The Indian two-wheeler market reached 19.1 million units and a value of USD 21.141 billion in FY 2025. The industry grew by 7% CAGR from FY 2021 to FY 2025, excluding Electric 2W. The scooter segment showed a 13% CAGR, and the motorcycle segment had a 5% CAGR from FY 2021 to FY 2025.

The Indian Scooter and motorcycle market is growing because scooters and motorcycles are affordable, have low running costs, require little upfront investment, have low EMIs, are in Demand in quick commerce, are easy to drive in heavy traffic, especially during peak hours, and are easy to park.

Entry-Level Bikes Remain Dominant in Indian Two-Wheeler Market:

The entry-level segment will still be the largest in the Indian two-wheeler market in FY 2025 because first-time buyers are price-sensitive. Other reasons are that entry-level two-wheelers have attractive mileage, are preferred in the rural market, and have low maintenance costs.

Due to increased disposable income and the primary commute vehicle, second-time buyers prefer executive and Lifestyle Motorcycles.

Royal Enfield is the market leader in the LifeStyle segment because its brand is strong in buyers’ minds.

Indian Two-Wheeler Trends FY 2025: Honda Leads, Hero Slips:

Honda’s vehicle sales revenue overtook Hero MotorCorp’s Sales revenue in FY 2025. This is one of the milestones that Honda Two Wheeler India achieved. Honda achieved this because it has a mixed product portfolio. Honda has a significant presence in the Value Plus segment, and Hero has a stronghold in the Economy segment.

Market Share Trend FY 2021 to FY 20205:

Hero has continuously lost market share since FY 2009, when its share was 60%. In the last 16 years, it has lost around 50%, down to 29% in FY 2024. Honda, which had a market share of 6% in FY 2009, has reached a 28% market share.

TVS Motors, Yamaha, and Royal Enfield increased market share because they adopted different strategies to win buyers’ confidence.

Competitor Landscape: Motorcycle and Scooter

Honda is gaining market share and growth in the Motorcycle and Scooter segments because the company does not compromise on component or part quality, Production process, or Equipment quality.

Honda also sets a benchmark in the Industry in after-sales support by providing proper training to technicians, supply chain management, quality checks, and customer satisfaction.

The other reasons are that Honda has high product reliability, performance, and resale value.