After ending FY25 with a 6% growth in motorcycle registrations despite quarterly volatility, India’s two-wheeler market is expected to maintain a steady 5–7% growth range in FY26, according to Rakesh Sharma, Executive Director, Bajaj Auto. The electric scooter segment, however, is set to outpace the overall industry with projected growth of 20–25%, he added.
“In motorcycles, the financial year 2025, with its ups and downs, finally ended with about a 6% growth in terms of registrations,” Sharma said during Bajaj Auto’s Q4 earnings call. “We think that the coming year will be more or less in this range of 5–7%.”
Mid-Segment Motorcycles Will Lead Growth
Bajaj Auto monitors Vahan portal registration data to track market trends rather than relying on wholesale billing numbers. While Q4 FY25 saw a slight decline of 2% in motorcycle registrations, Sharma noted that this was consistent with the year's pattern of fluctuation. “Growth may not be very evenly distributed through quarters or months. It will have its ups and downs, exactly like FY25,” he cautioned.
The 125cc motorcycle segment, which now makes up 53-54% of industry volumes, is expected to drive growth in FY26. “We think it will grow at twice the industry rate,” Sharma said, noting that demand in the 100cc commuter category may remain flat.
Strong Momentum for Electric Scooters
On electric two-wheelers, Bajaj Auto expects the e-scooter industry to sustain strong double-digit growth in FY26. “The e-scooter industry—we expect it to continue to grow between 20–25% in FY26,” Sharma stated.
Bajaj’s own Chetak e-scooter emerged as the top-selling electric two-wheeler in Q4 FY25, reinforcing the company’s bullish outlook for the segment.