TL;DR
The Indian two-wheeler market is experiencing a significant shift towards premium and higher-capacity motorcycles (125cc and above), driven by increased affordability and changing consumer preferences.
The Indian motorcycle market is witnessing a notable shift in consumer preferences, with an increasing number of buyers opting for higher-capacity and premium models. This trend is driven by improving affordability, evolving lifestyle aspirations, and supportive policy measures. Motorcycles with engine capacities of 125cc and above have significantly increased their market share, accounting for approximately 26% of total motorcycle volumes during the first ten months of FY2026, up from around 22.1% in FY2020.
The mid-premium category, encompassing bikes between 125cc and 350cc, experienced the highest jump, with a 29.8% year-on-year increase in January 2026. This segment saw sales rise from 2.39 lakh units in December 2025 to 3.10 lakh units in January 2026. Even the premium segment (bikes above 350cc) registered growth, with January sales rising by 7.2%. This structural shift towards premiumization is expected to influence future product strategies and market competition within the two-wheeler industry.
