India’s Two-Wheeler Sales Report – December 2025: A Strong Finish to the Year

The Indian two-wheeler industry closed December 2025 on a distinctly positive note, marking one of the strongest year-end performances since the post-pandemic recovery began. After several quarters of uneven demand driven by inflation, higher interest rates, and rural stress, December emerged as a month of consolidation and growth. Improved consumer sentiment, better financing availability, targeted discounts by manufacturers, and a gradual revival in rural demand all combined to push volumes higher across most major original equipment manufacturers (OEMs).

December 2025 also carried strategic importance for the industry. It not only reflected festive-season carryover demand but also acted as a barometer for how Indian consumers were responding to pricing, fuel costs, and the expanding electric two-wheeler ecosystem. Overall, the month demonstrated that two-wheelers continue to remain the backbone of India’s personal mobility market.

Overall Market Performance

Industry estimates indicate that total two-wheeler sales in India during December 2025 were in the range of 13–14 lakh units, reflecting a healthy year-on-year growth compared to December 2024. This growth was broad-based, cutting across motorcycles, scooters, and mopeds, though scooters and premium motorcycles showed relatively stronger momentum.

Several factors supported this performance. Seasonal discounts and year-end schemes attracted urban buyers, while improved agricultural cash flows and government spending helped revive rural purchasing power. Additionally, stabilization in commodity prices allowed manufacturers to avoid major price hikes, keeping entry-level models affordable.

Performance of Major Manufacturers

Among market leaders, Hero MotoCorp delivered a robust performance in December 2025. The company recorded total sales of over 4.5 lakh units, with domestic volumes forming the bulk of its dispatches. A notable highlight was the sharp rebound in scooter sales, which grew faster than motorcycles. Hero’s renewed focus on product refreshes and dealer-level incentives helped it regain traction in semi-urban and rural markets.

TVS Motor Company emerged as one of the strongest performers of the month. Its total two-wheeler sales crossed 4.6 lakh units, supported by strong demand in both domestic and export markets. TVS also benefited from rising acceptance of its electric scooter portfolio, which contributed meaningfully to volumes. The company’s balanced presence across commuter motorcycles, scooters, premium bikes, and electric vehicles gave it a competitive edge during December.

In the mid-premium and premium motorcycle segment, Royal Enfield continued its upward trajectory. December 2025 sales crossed one lakh units, reflecting sustained demand for 350cc and higher-capacity motorcycles. Strong order books, lifestyle branding, and steady export demand helped Royal Enfield maintain momentum even as overall industry growth was driven primarily by mass-market products.

Bajaj Auto posted moderate but stable growth during the month. While domestic motorcycle demand remained steady, Bajaj benefited significantly from exports, which accounted for a large share of its total two-wheeler volumes. Its focus on value-driven motorcycles and strong presence in overseas markets helped offset softer domestic demand in certain regions.

Segment-Wise Trends

Motorcycles continued to dominate the Indian two-wheeler market in December 2025, accounting for the majority of sales volumes. Entry-level commuter motorcycles in the 100–125cc category saw stable demand, particularly in rural and semi-urban markets. However, growth in this segment was relatively measured compared to scooters and premium motorcycles.

Scooters were among the biggest gainers of the month. Urban demand, rising participation of women riders, and growing preference for automatic transmission vehicles boosted scooter sales significantly. Both internal combustion engine (ICE) scooters and electric scooters contributed to this growth.

The electric two-wheeler segment showed notable expansion in December 2025. Registrations of electric scooters crossed the two-lakh-unit mark for the month, underlining steady adoption despite reduced subsidies under earlier policy frameworks. Improved charging infrastructure, better battery warranties, and increasing fuel costs continued to make electric scooters an attractive alternative for urban commuters.

Rural vs Urban Demand Dynamics

Urban markets remained the primary growth driver in December 2025, supported by higher disposable incomes, better financing options, and replacement demand. Year-end bonuses and promotional schemes further boosted showroom footfalls in metro and tier-1 cities.

Rural demand, while improving, showed a more gradual recovery. Good monsoon distribution and stable crop prices supported sentiment, but higher living costs kept discretionary spending in check. Nevertheless, December marked an improvement over previous months, indicating that rural demand may strengthen further in early 2026.

Exports and Global Outlook

Exports played a crucial role in supporting overall two-wheeler sales in December 2025. Indian manufacturers continued to benefit from demand in Africa, Latin America, and parts of Southeast Asia. Competitive pricing, reliable supply chains, and product durability helped Indian brands maintain their export momentum despite global economic uncertainties.

Challenges Ahead

Despite the strong December performance, challenges remain. Rising fuel prices, potential interest rate volatility, and regulatory changes related to emissions and safety norms could impact affordability in the coming months. Additionally, competition in the electric two-wheeler space is intensifying, putting pressure on margins.

Outlook for 2026

The December 2025 sales data suggests that the Indian two-wheeler industry is entering 2026 with renewed confidence. Continued recovery in rural demand, expanding EV adoption, and stable macroeconomic conditions could support steady growth. Manufacturers with diversified portfolios and strong distribution networks are likely to outperform peers.

Conclusion

December 2025 proved to be a strong and reassuring month for the Indian two-wheeler industry. With broad-based growth across manufacturers and segments, the industry demonstrated its resilience and adaptability. As India moves into 2026, two-wheelers are expected to remain central to the country’s mobility landscape, balancing affordability, efficiency, and evolving consumer preferences.

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