Premium Motorcycle Sales Surge in India: Winners and Losers in the Market

New Delhi: Sales of premium and high-capacity motorcycles in India are witnessing a steady rise, driven in part by recent GST rate cuts. While entry-level bikes still dominate the overall market, the trend is gradually shifting toward higher-capacity models.

Rising Demand for High-Capacity Bikes
Consumers are increasingly moving away from budget motorcycles toward premium bikes. In the first ten months of this financial year, sales of motorcycles with engine capacities of 125cc and above rose by 26%. Typically priced from ₹80,000, these bikes have seen increased demand as buyers respond to the GST reduction implemented by the government in September last year. According to SIAM (Society of Indian Automobile Manufacturers) data cited by ET, the market for premium bikes had a 24.4% share in FY2025, which is growing this year. CRISIL noted that the GST rate change has contributed to a strong recovery in motorcycle sales.

Winners and Losers in the Changing Market
Although 125cc entry-level motorcycles still account for 73% of total sales, demand for bikes in the 150cc–350cc range is steadily increasing. The share of higher-capacity models rose from 23% in FY2025 to 25% in the current financial year, fueled by falling prices and changing consumer preferences.

Companies benefiting the most from this shift include Royal Enfield and TVS Motor. According to Jefferies Research, Royal Enfield, known for its Bullet and Hunter models, increased its 125cc+ market share from 27% in FY2020 to 32% in the first nine months of 2026. TVS Motor’s share also rose from 15% to 19%. In contrast, Bajaj Auto experienced a decline, with its market share dropping from 32% to 22% during the same period.

This trend indicates a significant shift in consumer preference toward premium motorcycles, highlighting opportunities for manufacturers who focus on high-capacity models while challenging those relying heavily on entry-level segments.