The domestic two-wheeler industry reported a sharp 35% year-on-year rise in February, aided by a weak comparison base last year and improved demand conditions following the Goods and Services Tax (GST) Reduction announced in the second half of 2025.
Total industry volumes rose to 1.77 million units in February 2026, compared with 1.31 million units a year earlier. February 2025 had seen a pronounced slowdown as manufacturers and dealers adjusted inventories after the transition to OBD-2B emission norms, alongside aggressive pricing resets, muted consumer sentiment and constrained retail financing.
Among major manufacturers, Hero MotoCorp posted a 45% increase in domestic dispatches to 516,968 units from 357,296 units a year ago. Honda Motorcycle & Scooter India reported a 34% rise to 513,190 units, while TVS Motor Company grew 32% to 365,471 units. Bajaj Auto recorded a 27% increase to 186,164 units.
Mid-segment category
In the mid-segment category, Royal Enfield posted a 13% rise in sales to 91,248 units, while Suzuki Motorcycle India saw volumes climb 38% to 101,071 units.
Managing director of Eicher Motors and CEO of Royal Enfield, said the company continues to see sustained demand across markets. He added that Eicher Motors has approved an investment of Rs 958 crore for a brownfield expansion at Royal Enfield’s Cheyyar facility in Tamil Nadu.
The expansion is expected to raise annual production capacity to 2 million units from the current 1.46 million units over the next 18 months.
Vice president for sales and marketing at Suzuki Motorcycle India, said the company’s February performance reflected continued customer support and dealer engagement.
“Through continuous engagement with riders and communities, we create more opportunities for customers to experience Suzuki two-wheelers in real-world conditions. We will continue to prioritise customer engagement and deliver products and services that add meaningful value in everyday mobility,” he said.
Impact of GST rate cut
The GST rate cut which came into effect in September 2025 has also supported demand by improving affordability. The tax on motorcycles with engine capacity up to 350 cc was reduced from 28% to 18%, lowering prices for entry-level motorcycles and scooters. Improved financing flows and better inventory alignment at dealerships have further aided the recovery.
While February’s numbers point to a clear rebound, industry executives said that part of the growth reflects last year’s subdued base. Sustained momentum, they said, will depend on rural demand trends, credit availability and broader macroeconomic stability in the coming months.
