TL;DR
India's two-wheeler market is increasingly shifting towards premium models, with a notable rise in demand for higher engine capacity motorcycles and scooters.
The Indian two-wheeler industry is experiencing a significant shift towards premium models, with an accelerated trend of premiumization observed across both motorcycles and scooters. This development is driven by sustained upgrade demand, favorable pricing dynamics, and improving consumer sentiment, as highlighted in a report by Yes Securities. The report anticipates a continued decline in the share of sub-125cc vehicles as consumers increasingly opt for higher-end options.
Within the motorcycle segment, there's a decisive move towards higher engine capacities, particularly with premium motorcycles in the >300cc category emerging as a key growth engine. The 350cc segment, for instance, has reached an all-time high share of 5.7% in overall two-wheelers and 36% in premium motorcycles for the year-to-date FY26, a substantial increase from FY15. Scooterization has also peaked, with a penetration of 36% in YTDFY26, signaling a lasting market shift. The report suggests that strong demand from an upgrade base will continue to fuel the upper premium segment.
