TL;DR
India's two-wheeler market surpassed 20 million registrations in 2025, growing by 7% year-on-year, primarily driven by strong scooter sales and the positive impact of GST reductions.
India's two-wheeler market recorded a significant milestone in 2025, with registrations crossing the 20.2 million unit mark, indicating a robust year-on-year growth of approximately 7%. This growth comes after 18.92 million units were registered in 2024, highlighting the segment's consistent expansion.
Scooters played a pivotal role in driving this growth, with manufacturers like TVS Motor and Suzuki reporting strong double-digit gains, largely due to their extensive scooter portfolios. These two companies, along with Royal Enfield, were the only Original Equipment Manufacturers (OEMs) to register growth between January and November 2025.
A key factor contributing to this surge was the GST 2.0 restructuring, which reduced taxes on motorcycles and scooters up to 350cc from 28% to 18%. This tax relief, combined with above-normal monsoons and strong rural demand, particularly during the festive season, propelled the market to achieve all-time high registrations.
