The Federation of Automobile Dealers Associations (FADA) reported that two-wheeler retail sales reached a record 18.28 lakh units in June 2026, marking the highest-ever June performance for the segment. Retail volumes grew 21.22% year-on-year from 15.08 lakh units in June 2025, although sales slipped marginally by 0.89% compared with May's 18.45 lakh units, reflecting the impact of a delayed and uneven southwest monsoon on rural demand.
According to FADA, the month also marked an important milestone for India's two-wheeler market as electric vehicles accounted for 10.60% of total retail registrations, crossing the double-digit threshold for the first time. EV penetration stood at 9.25% in May 2026 and 7.34% in June 2025, indicating a steady acceleration in electric adoption over the past year. Petrol-powered motorcycles and scooters continued to dominate the market with an 89.33% share, while CNG-powered models remained negligible at 0.07%.
Urban Markets Offset Rural Monsoon Slowdown
While the overall monthly decline was modest, FADA's regional analysis showed a clear divergence between urban and rural markets. Urban two-wheeler registrations increased 4.25% month-on-month and 22.37% year-on-year, whereas rural registrations declined 4.55% sequentially despite posting a healthy 20.34% annual increase. The association attributed the rural softness to the late onset of the southwest monsoon, which delayed purchase decisions in rain-fed agricultural regions. Urban markets, by contrast, continued to benefit from relatively stable demand and improved vehicle availability.
The urban-rural retail mix also shifted slightly during the month. Rural markets accounted for 56.3% of total two-wheeler registrations in June, down from 58.5% in May, while the urban contribution rose to 43.7%. Although rural India continues to represent the larger share of demand, the month highlighted the sensitivity of entry-level motorcycle sales to monsoon progress and agricultural activity.
OEM Rankings Remain Stable as EV Brands Gain Ground
FADA said dealer feedback pointed to continued demand for entry-level motorcycles and scooters despite the sequential slowdown. Dealers also reported that supply conditions improved after geopolitical tensions in West Asia eased, allowing manufacturers to replenish inventories more effectively during the month. The association noted that price hikes implemented by OEMs from June 1, typically in the range of 2-3%, had a limited impact on bookings.
The June performance also capped a strong opening quarter for FY2027. During April-June 2026, two-wheeler retail sales reached 56.78 lakh units, compared with 49.74 lakh units in the corresponding period last year, representing growth of 14.15%. The category remained India's largest contributor to overall vehicle retail volumes, accounting for nearly three-fourths of total registrations during the quarter.
OEM-wise, Hero MotoCorp retained its leadership position with retail sales of 4.72 lakh units and a market share of 25.82%, followed closely by Honda Motorcycle & Scooter India at 4.53 lakh units with a 24.76% share. TVS Motor Company remained the third-largest player with 3.59 lakh registrations and a 19.65% share, while Bajaj Auto retailed 1.88 lakh units to account for 10.29% of the market. Suzuki Motorcycle India, Royal Enfield and Yamaha followed with market shares of 5.75%, 5.17% and 3.70%, respectively.
Electric Two-Wheelers Cross a Key Milestone
Among electric two-wheeler manufacturers, Ather Energy emerged as the largest player in retail registrations with 31,230 units and a 1.71% share of the overall market. Ola Electric retailed 16,150 units during the month, while Greaves Electric Mobility, River Mobility and BGauss also recorded year-on-year growth in retail volumes. Collectively, the data reflects the increasing contribution of electric brands to overall two-wheeler registrations, even as traditional ICE manufacturers continue to dominate total volumes.
Looking ahead, FADA expects improving rural cash flows following better monsoon coverage and the ongoing shift towards electric and fuel-efficient models to support demand through July. However, the association cautioned that rainfall deficiencies in certain regions, additional price revisions and financing turnaround times remain factors that could influence retail momentum during the early part of the festive season. Dealer sentiment nevertheless remains positive, with over half of respondents expecting growth in July and more than two-thirds anticipating market expansion during the July-September quarter.