India's two-wheeler industry achieved its strongest third-quarter performance with sales crossing five million units for first time, driven by urban demand and favorable economic policies.
13 Jan 2026 | 304 Views | By Angitha Suresh
India's two-wheeler industry recorded its highest-ever third-quarter sales during October-December 2025, reaching 5.70 million units and crossing the five million threshold for the first time in a single quarter. The segment registered growth of 16.9 percent compared to the same period in the previous year, according to data from the ...
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India's two-wheeler industry recorded its highest-ever third-quarter sales during October-December 2025, reaching 5.70 million units and crossing the five million threshold for the first time in a single quarter. The segment registered growth of 16.9 percent compared to the same period in the previous year, according to data from the Society of Indian Automobile Manufacturers.
The performance marks a continuation of the recovery trend in the domestic market, though annual sales remain below the peak levels achieved in 2018. For the January-December 2025 period, the segment crossed the 20-million mark with total sales of 20.50 million units, representing growth of 4.9 percent over the calendar year 2024.
Policy Measures Support Demand
Industry observers attribute the growth to several factors, including the implementation of GST 2.0, which improved vehicle affordability and increased household disposable income. The festive season in 2025 emerged as one of the strongest in recent years for the sector.
Macroeconomic measures introduced during 2025, including multiple reductions in repo rates and income tax relief, provided additional support to consumer demand. These policy interventions helped create conditions for sustained growth across the quarter.
While both urban and rural markets contributed to the expansion, current trends indicate urban demand as the primary driver of growth. This pattern is reflected in the stronger performance of scooters compared to motorcycles during the period, as scooters typically see higher demand in urban areas.
The urban-led growth pattern represents a shift in market dynamics, with metropolitan and tier-two cities accounting for a larger share of sales compared to previous quarters.
Export Performance Reaches New Peak
The two-wheeler segment also achieved record export numbers during the October-December quarter, with overseas shipments reaching 1.37 million units. This represents growth of 24.3 percent over the corresponding quarter of the previous fiscal year.
For the full January-December 2025 period, two-wheeler exports totaled 4.94 million units, marking the highest export volume for any calendar year and registering growth of 24.2 percent compared to 2024.
Export growth during the quarter stemmed from multiple factors, including improving macroeconomic conditions in key African markets, steady demand from South Asian countries, and a broader recovery in motorcycle demand across international markets.
The two-wheeler segment represents a significant component of India's automobile industry and serves as an indicator of consumer sentiment and economic conditions. The segment caters to a wide range of consumers, from daily commuters to first-time vehicle buyers.
Despite the strong quarterly performance, the industry continues to work toward regaining the peak volumes achieved in 2018, when the segment had recorded its highest annual sales. The current trajectory suggests gradual recovery, supported by both domestic policy measures and expanding international markets.
The combination of domestic demand recovery and export growth has positioned the two-wheeler industry for sustained expansion, though performance in subsequent quarters will depend on the continuation of supportive economic conditions and consumer confidence levels.