India's two-wheeler industry experienced a robust May, with major manufacturers reporting significant sales growth fuelled by strong domestic demand for premium motorcycles and scooters, strategic inventory replenishment, and a notable recovery in export markets.
Key Points
- India's two-wheeler manufacturers reported broad-based growth in May, driven by channel inventory replenishment, resilient domestic demand for premium segments, and recovering exports.
- Major players like TVS Motor, Royal Enfield, Hero MotoCorp, and Honda Motorcycle & Scooter India recorded double-digit growth in domestic dispatches.
- Exports emerged as a significant growth driver, with Hero MotoCorp, TVS Motor, and Bajaj Auto reporting substantial increases in overseas shipments.
- The premium motorcycle segment continued its strong performance, with Royal Enfield's domestic sales rising 24 per cent year-on-year.
- Electric two-wheeler (e2W) retail sales also demonstrated robust year-on-year growth, indicating a shift in consumer preference.
India’s two-wheeler (2W) 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.
Domestic Demand and Inventory Boost
Analysts said wholesale volumes continued to outpace retail sales, aided by inventory replenishment at dealerships.
Arun Agarwal, vice president, Fundamental Research at Kotak Securities, said domestic 2W wholesale volumes saw double-digit growth, supported by channel inventory replenishment.
Retail sales of internal combustion engine (ICE) 2W grew at a slower pace due to a high base effect from a year ago, while electric (e2W) retail sales continued to post strong year-on-year growth.
Strong Export Performance
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 (Y-o-Y) to 33,284 units from 18,704 units a year ago.
TVS Motor’s 2W exports rose 48 per cent to 158,546 units, while Bajaj Auto, traditionally India’s largest 2W 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 Y-o-Y to 9,116 units from 13,609 units a year earlier.
Premium Segment and E2W Growth
TVS Motor led the industry’s growth trajectory, with domestic 2W dispatches rising 24 per cent Y-o-Y to 384,565 units in May 2026 from 309,287 units a year ago.
Its overall motorcycle sales, including exports, rose 30 per cent to 273,802 units, while scooter sales increased 32 per cent to 220,740 units.
E2W sales grew 56 per cent to 43,632 units.
Premium motorcycles continued to remain a bright spot for the industry.
Royal Enfield’s domestic sales rose 24 per cent Y-o-Y to 94,115 units in May from 75,820 units in the year-ago period.
“We are carrying our momentum in 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.
Hero MotoCorp reported a 10 per cent increase in domestic wholesales to 536,784 units, attributing it to strong demand in the Deluxe 125cc, premium motorcycle and scooter segments, all of which recorded double-digit growth.
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