TL;DR
India's two-wheeler market experienced a record boom in October 2025 with 1.85 million registrations, driven by GST rate cuts on sub-350cc motorcycles and robust festive season demand.
The Indian two-wheeler market witnessed a significant surge in October 2025, recording 1.85 million unit registrations—the highest monthly tally this year. This robust growth is attributed to the combined impact of the recent GST rate rationalization (GST 2.0) and strong festive season demand, which has revitalized consumer sentiment across both urban and rural regions.
Industry experts indicate that the government's decision to reduce GST on motorcycles up to 350cc from 28% to 18% under the GST 2.0 framework played a crucial role. This tax cut effectively lowered prices, encouraging more consumers to make purchases ahead of Diwali. Manufacturers like Hero MotoCorp reported a 5% rise in wholesale volumes, while Honda Motorcycle and Scooter India (HMSI) saw a 3% increase. TVS Motor Company recorded a healthy 12% rise, particularly driven by strong scooter sales.
Bajaj Auto's dispatches climbed 5%, and Royal Enfield, known for its mid-capacity motorcycles, posted the sharpest growth at 43%, with 113,000 units. Analysts confirm that the combination of GST cuts, new model introductions, and festive offers has considerably boosted consumer confidence. While the overall auto sector showed mixed trends, two-wheelers, three-wheelers, and commercial vehicles demonstrated strong growth, even as passenger car sales saw a year-on-year slip.
