Premium Motorcycle Market Share Rises 500 Basis Points in Six Years

The market share of premium motorcycles in India has increased by 500 basis points over six years, rising to 19% in fiscal 2025 from 14% in fiscal 2019, according to a new report by Crisil Intelligence. The volume of premium motorcycles (engine capacity greater than 150cc) grew to 2.3 million units from 1.9 million units during the same period.

The growth in premium motorcycle sales occurred despite an overall decline in the motorcycle market, which contracted from 13.6 million units in fiscal 2019 to 12.3 million units in fiscal 2025. The broader two-wheeler market also declined to 19.9 million units from 21.2 million units over the same period.

Premium motorcycle sales exceeded pre-Covid levels by 22% in fiscal 2025, while overall two-wheeler sales remained at 94% of pre-pandemic levels and motorcycle sales at 90%.

The expansion is driven by both demand and supply factors. On the demand side, buyers with stable incomes have maintained purchasing power and shown preference for premium products. The supply side has seen significant expansion in model availability, with the number of premium motorcycle models increasing to 35 in fiscal 2025 from 23 in fiscal 2019.

"The demand-side spurs for premium motorcycles include a growing preference for these products from buyers with healthy incomes who maintained their purchasing power even during the pandemic," said Pushan Sharma, Director at Crisil Intelligence. "On the supply side, it is the expanded range of options available to consumers."

The performance contrasts sharply with economy motorcycles, which saw their market share decline to 46% in fiscal 2025 from 62% in fiscal 2019. Volume in this segment fell to 5.6 million units from 8.4 million units, primarily due to weak rural demand and price increases.

Economy motorcycle prices increased by 65-70% due to the transition from Bharat Stage IV to BS VI emission standards, implementation of safety norms, and commodity price inflation. Rural incomes have not kept pace with these price increases, resulting in weak demand in this segment.

"Weak rural demand poses a major hurdle for entry level motorcycles," said Mohit Adnani, Associate Director at Crisil Intelligence. "Rural incomes have not increased in lockstep with the steep 65-70% hike in prices of economy models to pass on the increase in costs due to the transition from Bharat Stage (BS) IV to BS VI standards, implementation of safety norms, and the commodity super cycle."

As a result, sales of economy motorcycles recovered to only 67% of pre-pandemic levels in fiscal 2025.

Crisil Intelligence projects the market share of premium motorcycles will continue growing to approximately 22% by fiscal 2030. The growth is expected to be supported by favorable macroeconomic trends, increasing disposable incomes, rising global exposure among consumers, and India's youthful demographic profile.

The analysis categorizes motorcycles into three segments: economy (engine capacity below 110cc), executive (110-150cc), and premium (above 150cc). The data is sourced from the Society of Indian Automobile Manufacturers.

The trend reflects a broader shift toward premiumization across various consumer sectors in India, as consumers with higher disposable incomes increasingly opt for products with enhanced features and performance capabilities.