Two-wheeler sales accelerate in September on GST 2.0 benefits, festive demand

The two-wheeler segment recorded a handsome performance in September 2025.

The two-wheeler segment received a significant boost from the Goods and Services Tax (GST) rate rationalisation and festive season demand, with Hero MotoCorp, TVS Motor Company, Bajaj Auto, Royal Enfield and Suzuki Motorcycle India reporting a growth in their domestic wholesales in September 2025.

However, Honda Motorcycle & Scooter India registered a decline in wholesales in the domestic market during the month. For reference, wholesales indicate the dispatches from companies to dealerships.

Domestic Two-Wheeler Wholesales

For Hero, the two-wheeler volumes rose 5% year-on-year (y-o-y) at 6,47,582 units in September 2025. In an official statement, the company said: "The combination of the festive spirit and the new GST benefits has led to a sharp rise in bookings and enquiries. Showroom and dealership footfalls have more than doubled compared to the festive season last year, with significant traction observed in the high-volume commuter segment."

The company's electric brand, Vida, recorded 12,736 Vahan registrations, which resulted in its electric two-wheeler market share rising to 12.2% in September 2025 from 4.7% in the same month last year. "Demand for Vida remains ahead of supply in several key markets, indicating robust traction for the company's electric vehicle (EV) business this festive season," the company noted.

While Honda's two-wheeler wholesales dropped 5.72% y-o-y at 5,05,693 units in September 2025, those of TVS grew 11.96% y-o-y at 4,13,279 units during the month.

The EV volumes of TVS jumped 8.18% y-o-y to 31,266 units in September 2025 from 28,901 units in September 2024 as the popular iQube electric scooter continued its growth trajectory. However, magnet availability continues to pose challenges at a time when the company has introduced its second electric scooter, the Orbiter.

The two-wheeler wholesales of Bajaj climbed 5.34% y-o-y at 2,73,188 units in September 2025. While Royal Enfield recorded a jump of 43.17% y-o-y at 1,13,573 units in volumes, Suzuki clocked 1,05,886 units, logging a growth of 37.05% y-o-y during the month.

"It has been an incredible start to the festive season for us. We have registered our best-ever monthly sales volume and have crossed 1,00,000 retail volumes for the month. To make sure that our customers take home their favourite Royal Enfield motorcycle this festive season, we have put in considerable effort. In the month of September 2025, we announced the upgraded Meteor 350, which has received a promising response from our community. All our new and existing motorcycles continue to perform well. We are confident of the growth momentum and are looking forward to a great year ahead," said B Govindarajan, Managing Director - Eicher Motors and Chief Executive Officer - Royal Enfield.

"September 2025 has been a remarkable month for us. The festive cheer translated into strong demand, driving 37% growth in our domestic sales. The recent GST reduction has further added to customer enthusiasm by making our two-wheelers even more affordable. We are optimistic that this momentum will continue through the festive season and beyond, enabling us to serve a larger customer base with our trusted motorcycles and scooters," said Deepak Mutreja, Vice President - Sales and Marketing, Suzuki Motorcycle India.

In GST 2.0, two-wheelers with an engine capacity of up to 350cc are in the 18% slab, while those above 350cc are in the 40% slab. Earlier, two-wheelers attracted a GST of 28% with no compensation cess on models with an engine capacity of up to 350cc and a 3% compensation cess on those above 350cc, resulting in the total tax incidence of 28% to 31%.

With the GST slabs rejigged and the removal of compensation cess on automobiles in the new regime, two-wheelers with an engine capacity of up to 350cc have become cheaper, while models above 350cc have witnessed a price hike.

However, nothing has changed for EVs, including electric two-wheelers, as they were and still are in the 5% slab.