TL;DR
India's two-wheeler market is increasingly premiumized, with declining sub-125cc share and growing demand for higher-capacity motorcycles (>300cc) and 125cc scooters.
India's two-wheeler industry is undergoing a significant shift towards premiumization, with both motorcycles and scooters witnessing increased demand for higher-end models. This trend, highlighted in reports as of January 2026, is driven by sustained consumer upgrade demand, favorable pricing dynamics, and improving consumer sentiment across the country.
The share of sub-125cc segments is expected to continue its decline, reinforcing premiumization as a long-term structural trend within the Indian two-wheeler market. Particularly, premium motorcycles in the >300cc category are emerging as a key growth engine, fueled by aspirational demand and a steady stream of new model launches. The 350cc segment, a strong indicator of this premium shift, has reached an all-time high share of 5.7% in overall two-wheeler sales and 36% within the premium motorcycle category in year-to-date FY26.
Scooter penetration has also reached a peak of 36% in year-to-date FY26, surpassing previous highs and signaling a lasting market shift towards scooters, especially 125cc models in metros and Tier-1 cities due to their feature-rich offerings. Manufacturers and consumers are adapting to this evolving market dynamic, prioritizing features, performance, and brand value.
