TL;DR
India's two-wheeler market is rapidly premiumizing, with a surge in demand for scooters and motorcycles above 125cc, and a notable decline in the sub-125cc segment.
The Indian two-wheeler market is undergoing a significant shift towards premium segments, with a notable acceleration in premiumization across both motorcycles and scooters. A recent report by Yes Securities highlights sustained consumer upgrade demand and favorable pricing dynamics as key drivers, leading to a projected continued decline in the share of sub-125cc vehicles.
Scooter penetration has reached a new peak of 36% in Year-to-Date FY26, a figure that rises to 38.4% when adjusted for unreported electric two-wheeler volumes. This growth is fueled by rapid urbanization, limited public transport options, and robust demand from e-commerce and delivery services. In the motorcycle segment, while performance was subdued in the past four years, there's now a decisive shift towards higher engine capacities, particularly for premium motorcycles exceeding 300cc.
The 350cc segment, in particular, has emerged as a crucial growth engine, reaching an all-time high share of 5.7% in overall two-wheeler sales and 36% within the premium motorcycle category in YTD FY26. This trend, supported by aspirational demand and a steady stream of new model launches, signifies a lasting market shift towards higher-value segments.
