Two-wheeler retail sales in India rose 19.69 percent year on year to 17,14,610 units in August 2026, according to the Federation of Automobile Dealers Associations (FADA). The segment recorded its best-ever August, although volumes declined 5.70 percent from July, when dealers retailed 18,18,289 two-wheelers. August 2025 volumes stood at 14,32,537 units.
FADA said August marked a new peak for two-wheeler retail, with demand supported by rural markets and affordability following the GST 2.0 changes. However, the month-on-month decline reflected the seasonal monsoon lull, rainfall in some regions and the inauspicious Shravan/Aadi period cited by dealers.
Rural markets continued to account for a slightly larger share of two-wheeler retail than urban markets. Rural two-wheeler registrations increased 20.25 percent YoY, compared with 19.07 percent growth in urban markets. On a sequential basis, however, rural retail fell 6.85 percent, while urban retail declined 4.38 percent.
Two-Wheeler EV Penetration Crosses 10%
Electric two-wheelers accounted for 10.68 percent of two-wheeler retail in August, up from 7.66 percent in August 2025. EV share was 11.24 percent in July. Petrol/ethanol vehicles continued to dominate with an 89.23 percent share, while CNG/LPG accounted for 0.08 percent.
FADA said August was the first non-festive month in which electric two-wheelers crossed the 10 percent penetration mark. Total two-wheeler EV retail therefore increased its share despite the overall sequential decline in the segment.
Honda Leads Two-Wheeler Retail Market
Honda Motorcycle and Scooter India remained the largest two-wheeler OEM in August, with 4,47,342 units and a 26.09 percent market share. Hero MotoCorp followed with 4,13,996 units and 24.15 percent share, while TVS Motor Company recorded 3,53,746 units and a 20.63 percent share.
Bajaj Auto retailed 1,57,149 two-wheelers, giving it a 9.17 percent share, followed by Suzuki Motorcycle India at 1,04,217 units and 6.08 percent. Royal Enfield accounted for 94,448 units and a 5.51 percent share.
Among the electric-focused players listed separately by FADA, Ather Energy recorded 28,757 units and a 1.68 percent share, while Ola Electric recorded 13,852 units and a 0.81 percent share. Greaves Electric Mobility, River Mobility and BGauss recorded 8,613, 5,141 and 4,845 units respectively.
Two-Wheeler Retail Outlook For September
FADA expects two-wheeler demand to receive support from the festive season and the continued shift towards alternative powertrains. However, it identified rural cash flows and late-season rainfall as factors that could influence demand in September. Overall dealer sentiment for September remained cautiously optimistic, with 67.09 percent of surveyed dealers expecting growth, 27.35 percent expecting a flat market and 5.56 percent expecting de-growth.
For the September-November period, 81.62 percent of dealers expected growth, while 17.09 percent expected the market to remain flat and 1.28 percent anticipated de-growth.