Sales of motorcycles and scooters by India’s top six manufacturers showed only modest growth in January compared to the same period last year. This was largely due to companies reducing stock levels and weaker demand for older models manufactured in 2024.
A total of 1.44 million two-wheelers were sold in January, reflecting a slight YoY increase of 2.3%. The growth was primarily fueled by demand from rural areas, which performed slightly better than urban markets.
Newly launched models such as the TVS Jupiter, Royal Enfield Bear 650, and Hero Xtreme 250R were among the best-performing products in January. Looking ahead, major manufacturers like Hero MotoCorp, Bajaj Auto, TVS Motor, and Honda are expected to boost production of their electric two-wheelers, which could contribute to stronger sales in the coming months.
According to Chirag Jain, an analyst at Emkay Securities, there is potential for growth driven by replacement demand over the next 2-3 years. He also pointed out that exports are showing signs of improvement.
TVS Motor Company’s Director and CEO, KN Radhakrishnan, mentioned in an analyst call last week that the rural segment is finally showing a positive response after a long period of sluggish demand. However, he also noted that economic pressures and challenges in the moped segment remain concerns. While purchasing power is increasing, other factors continue to impact the market.
Company-Wise Performance
- Hero MotoCorp, India’s largest two-wheeler manufacturer, saw a slight 2% YoY decline in sales, with 4,20,000 units sold in January. Despite this, the company launched five new models across different segments, including the Xtreme 250R, Xpulse 210, Destini 125, Xoom 125, and Xoom 160.
- Honda Motorcycle and Scooter India (HMSI), the second-largest player in the market, came very close to overtaking Hero MotoCorp, with just 9,500 units separating the two companies. HMSI recorded sales of 4,02,000 units in January.
- Bajaj Auto, India’s fourth-largest but most valuable two-wheeler company, experienced an 11% YoY decline in sales, with 1,71,000 units sold. The company has been reducing dealership stock over the past few months while preparing for upcoming product launches.