Royal Enfield, TVS Market Share Grow in 125cc Plus Segment

The premium motorcycles with 125cc engine and above witnessed increased demand due to growing customer aspirations and recent reduction in GST rates

Recently, an ET Auto report revealed that customer are preferring premium motorcycles with engine capacity of 125cc and above in the Indian market. These high-powered models have accounted for 26 percent of overall sales in the first 10 months (Apr 2025-Jan 2026) of FY 2026-27 as compared to 22.1 percent in FY 2020-21. The report further states that this rise in sales is due to aggressive pricing, affordable cost of ownership and growing customer aspirations. This trend has benefitted TVS and Royal Enfield the most among other two-wheeler brands.

According to Society of Indian Automobile Manufacturers (Siam) data, the market share of bikes with starting price of Rs 80,000 was at 26 percent between Apr 2025 and Jan 2026, which is the highest in the last five years. Industry insiders believe that the growing demand in this segment has been fueled by the recent GST cut by the Union government.

In Sep 2025, the tax on bikes with engine capacity below 350cc was slashed to 18 percent from the existing 28 percent. The SIAM data stated that premium bikes with 125cc engine or above comprised for 24.4 percent of total motorcycle sales in FY 2025-26. TVS and Royal Enfield are the two biggest beneficiaries of this new trend as they do not retail entry-level commuter models.

“Motorcycles have seen strong recovery following GST rationalisation. While entry-level models up to 125cc continue to dominate, with a share of ~73 per cent, demand is gradually shifting towards the 150-350cc range. The share of these higher capacity models has risen from ~23 per cent in fiscal 2025 to ~25 per cent this fiscal, reflecting improving affordability and ongoing premiumisation. Beyond this, the premium segment remains a small part of the overall mix,” read a Crisil release.

Royal Enfield, in particular, has a vast portfolio of 350cc and 450cc motorcycles with popular models such as the Bullet 350, Hunter 350 and Himalayan 450. For the first time, the brand’s market share in the 125cc plus segment went up to 32 percent between Apr 2025 – Dec 2025 as compared to 27 percent in Apr 2019 – Dec 2019 in the domestic market.

As for TVS Motor Company, the market share grew from 15 percent to 19 percent during the same period (Apr 2025 – Dec 2025). This stats was shared in a Jefferies Research report. Both Royal Enfield and TVS witnessed growth on the expense of Bajaj Auto which lost a substantial chunk of its market share in the 125cc+ segment as it came down to 22 percent from 32 percent.