Hey everyone! As we cruise past the halfway mark of 2025, it’s the perfect time to pull over and take a good look at what’s really happening in the dynamic Indian motorcycle market. This isn’t just about raw numbers; it’s about understanding the pulse of the market, how economic shifts are playing out, and what Indian riders are truly looking for in their next two-wheeler.
Table of Contents
Key Takeaways
- Mixed Bag of Sales: While overall two-wheeler sales saw a modest year-on-year growth (around 6% for June 2025 compared to June 2024), month-on-month figures show some expected dips due to monsoon onset and shifting dynamics.
- EV Segment Surging: Electric two-wheelers are recording significant growth, with over 1 lakh units sold in June 2025, despite subsidy adjustments. Traditional players like TVS and Bajaj are now leading this charge, while previous frontrunners face challenges.
- Premiumization Trend Continues: The demand for motorcycles above 150cc is surging, defying the overall market’s modest growth. Riders are increasingly opting for higher-end models, fueled by rising disposable incomes and aspirational buying.
- Rural vs. Urban Divide: The commuter segment, heavily reliant on rural demand, faces headwinds due to stagnant rural incomes and price hikes, contrasting with robust urban and premium sales.
The first half of 2025 has been a fascinating ride for India’s two-wheeler industry. Data from industry sources, including provisional SIAM figures for mid-2025, indicate a market in transition. While overall domestic two-wheeler sales are recovering from post-pandemic stagnation, clocking a roughly 6% year-on-year growth for June 2025, the picture gets more nuanced when you look closer.
The Great Divide: Commuters vs. Premium Bikes
The biggest story this year is the widening gap between segments. The commuter motorcycle segment, the backbone of Indian two-wheeler sales, continues to face challenges. Weak rural demand, coupled with price increases (up to 65-70% since BS IV to BS VI transition), means that entry-level models are struggling to recover pre-pandemic volumes. Manufacturers like Hero MotoCorp, while maintaining market leadership through sheer scale and rural penetration (Hero sold over 5.25 lakh units in June 2025, a 6.9% YoY increase), are seeing their traditional stronghold tested.
On the flip side, the premium motorcycle segment (150cc and above) is absolutely roaring. Crisil Intelligence reports that premium bikes now represent over 50% of ICE bike sales and their market share has surged to 19% in fiscal year 2025 (from 14% in FY2019). This surge is driven by increasing disposable incomes, a growing young population with global exposure, and a plethora of new, attractive models from brands like Royal Enfield (which saw a 16.4% YoY increase in June 2025 with ~77k units sold) and Bajaj (with its Pulsar and Dominar series). Riders aren’t just buying bikes for utility; they’re buying for lifestyle and aspiration.
The Electric Revolution Accelerates (with new leaders)
The electric two-wheeler (E2W) segment is no longer a niche – it’s a major growth engine. June 2025 saw E2W sales cross the remarkable 1 lakh unit mark, a robust 32% year-on-year growth. What’s even more interesting is the leadership shift. TVS Motor (TVS iQube) has emerged as the frontrunner, consistently topping sales charts (25,274 units in June, 80% YoY growth), closely followed by Bajaj Auto (Chetak, 23,004 units, 154% YoY growth).
Former market leader Ola Electric, however, has seen a significant decline, losing market share as traditional OEMs leverage their wider networks, established trust, and evolving product portfolios. New entrants and agile players like Ather Energy and River Mobility are also making strong inroads, demonstrating that innovation and customer experience are critical in this rapidly evolving space, even with adjusted government subsidies (like the EMPS 2024 plan, which lowered subsidies per kWh compared to FAME 2).
New Launches and Policy Impact
2025 has seen a consistent stream of new model launches, particularly in the mid-capacity and premium segments, catering to the “premiumization” trend. Brands like Royal Enfield are teasing new 650cc models and even an electric Himalayan, indicating a proactive approach to evolving preferences. Bajaj has refreshed its Pulsar lineup, and TVS continues to strengthen its Apache series.
Policy-wise, while the government continues to support electric vehicle adoption, adjustments to subsidy schemes (like EMPS 2024 replacing FAME 2 with reduced per-kWh incentives) have influenced pricing and consumer sentiment, especially for new EV entrants. The implementation of OBD2 Phase B norms from April 1, 2025, has also led to slight price increases across the ICE segment, further pressuring the budget-conscious consumer.
Looking Ahead
The Indian motorcycle market in mid-2025 is a tale of two halves: a challenging landscape for mass-market commuters and a thriving, aspirational premium and EV segment. As economic stability improves, disposable incomes rise, and the shift towards cleaner mobility gains momentum, the industry is poised for continued transformation. The manufacturers who can balance their traditional strengths with agile innovation in the EV and premium segments will be the ones that truly ride ahead.
Frequently Asked Questions
Q1: What are the best-selling motorcycle segments in India right now?
A1: Currently, the commuter segment (100-125cc) still accounts for the largest volumes, primarily driven by mass-market sales. However, the premium segment (150cc and above) and electric scooters/motorcycles are experiencing the fastest growth in terms of consumer preference and sales value.
Q2: How is the electric motorcycle segment performing in 2025?
A2: The electric two-wheeler segment is performing robustly in 2025, recording over 1 lakh unit sales in June alone. While earlier players faced shifts, legacy manufacturers like TVS and Bajaj are now leading the charge, indicating strong consumer acceptance for electric mobility, despite changes in government subsidies.
Q3: Are there any new policies impacting motorcycle sales in India?
A3: Yes, the government’s Electric Mobility Promotion Scheme (EMPS 2024) has replaced the FAME 2 subsidy, adjusting the incentives for electric two-wheelers. Additionally, the implementation of Onboard Diagnostics 2 (OBD2) Phase B norms from April 2025 has led to marginal price increases for internal combustion engine (ICE) vehicles.
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