The Indian motorcycle market saw a challenging start to FY2026, with overall sales dropping by 9.2% year-on-year in the first quarter, as commuter bike sales declined while premium segments showed relative strength.
Commuter Bikes Face Headwinds
The motorcycle industry experienced a significant sales dip in Q1 FY2026, largely attributed to inventory correction. Of the twelve motorcycle segments, six reported a year-on-year sales decline, particularly impacting the entry-level categories.
The frugal 100cc commuter bike segment, a traditional volume driver, dropped by 13% year-on-year. Leading players like Hero MotoCorp, Bajaj Auto, and Honda Motorcycle & Scooter India all saw their sales numbers fall in this crucial segment.
Similarly, the 100-125cc executive commuter category experienced a 6% decline. While Honda managed to buck the trend with an 11% increase in its Shine 125 and SP125 models, Bajaj Auto (including various Pulsar 125 models and the Freedom CNG bike) and Hero MotoCorp reported reduced dispatches in this category.
The sharpest drop was seen in the 125-150cc bike segment, which plummeted by a substantial 37%. Bajaj Auto’s Pulsar models, Yamaha’s FZs, and Honda’s Unicorn all registered significant year-on-year sales decreases, indicating a clear shift in buyer preference.
Premium Segments Ride High
In contrast to the commuter market, larger displacement segments showed more resilience. The 150-200cc motorcycle segment only saw a modest 2% decline, suggesting that more buyers are upgrading to these higher-performance bikes.
TVS Motor Co was a major beneficiary in this space, with its Apache models seeing a 13% sales increase and commanding a 41% market share. Bajaj Auto and Honda also reported positive growth in this segment, while Yamaha’s MT-15 and R15 sportbike sales saw a significant drop.
The 200-250cc category grew by 8% year-on-year, primarily fueled by the strong demand for the TVS Ronin. After a slow start, the Ronin’s sales surged by an impressive 157%, now accounting for 38% of this sub-segment’s sales, indicating its growing popularity.
The 250-350cc category also performed well, up 13% year-on-year. This growth was largely driven by Royal Enfield, which sold over 208,000 units of its 350cc models and maintained a commanding 95% share of the category’s total sales, further solidifying its dominance.
Looking Ahead: A Cautiously Optimistic Outlook
Despite the challenging first quarter, the Society of Indian Automobile Manufacturers (SIAM) remains cautiously optimistic for the rest of the fiscal year. They anticipate a gradual recovery, supported by several positive indicators.
The upcoming festive season is expected to boost demand, especially for new two-wheelers. Additionally, an above-normal monsoon forecast is likely to aid rural income recovery, which is crucial for stimulating sales of entry-level vehicles.
- Indian motorcycle sales declined by 9.2% in Q1 FY2026 due to inventory correction and changing market trends.
- Entry-level commuter bike segments (under 150cc) experienced significant sales drops, with the 125-150cc category seeing the sharpest decline at 37%.
- Premium motorcycle segments (150cc and above) showed growth or minimal decline, with TVS Ronin seeing a 157% surge and Royal Enfield maintaining its 95% market dominance in the 250-350cc segment.
The industry hopes that improved rural demand and the festive season will pave the way for a stronger performance in the latter half of the fiscal year. For more insights, also see: Honda Activa market share drops as TVS Jupiter sales increase in Q1 FY2026
