Bajaj Auto Ltd., TVS Motor Company Ltd., and Hero MotoCorp Ltd. Struggle as Honda Takes Lead in Two-Wheeler Market
The Indian two-wheeler market is witnessing a dynamic shift in 2025, with Honda Scooters & Motorcycles gaining market share at the expense of competitors like Bajaj Auto Ltd., TVS Motor Company Ltd., and Hero MotoCorp Ltd. Recent sales figures indicate a 12.7% increase in overall two-wheeler sales, in stark contrast to a mere 2% growth reported by car manufacturers. The surge is largely driven by an uptick in scooter demand and new product launches. Notably, Honda's market share has increased by 465 basis points to 29.8%, pushing Hero MotoCorp's share down to 29.2%.
Honda's Ascendance in the Entry-Level Segment
The entry-level 100-CC segment has been a stronghold for Hero MotoCorp, which previously controlled nearly 80% of this market. However, Honda's revival and competitive strategies are evident, allowing it to reclaim some of its previous market share. The Honda Shine has emerged as a critical model in this category, while Bajaj Auto has expressed concerns regarding profitability in the segment, pushing them toward higher-capacity models.
Shifting Dynamics in the 125-CC Segment
The 125-CC segment represents a promising growth area, with both Bajaj and TVS deploying strategies targeted at younger consumers. Despite recent product launches, Honda's commitment to its commuter offerings like the Shine 125 and SP 125 has allowed it to regain market presence.
Market Share Changes in Performance Segments
Honda’s performance in the 160-CC segment is also noteworthy, capturing a strong position thanks to models like the Unicorn. The competition remains fierce, especially with players like Yamaha facing challenges. Meanwhile, Royal Enfield has shown disappointing sales despite new product introductions.
Future Outlook and Sector Valuations
While stock valuations for two-wheelers have seen an upward trend in recent months, analysts express varied sentiments about companies like Bajaj and Eicher Motors. Bajaj Auto's dual focus on profitability and market share will be crucial moving forward.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.