Analysts said the festive period has amplified the momentum, particularly after a sluggish start in early September during the inauspicious Shraad fortnight.The rollout of GST 2.0 has turbocharged India’s two-wheeler market, with vehicle registrations in October surging to 1.85 million units — the highest monthly tally so far this year — according to data from the government’s Vahan portal.
The spike reflects the dual impact of the recent GST rate cut on motorcycles and robust festive season demand, which has reignited buyer sentiment across both urban and rural markets.
As per IANS, industry executives said the reduction in GST on motorcycles up to 350cc from 28 per cent to 18 per cent under the GST 2.0 regime has made vehicles more affordable, prompting consumers to advance purchases ahead of Diwali.
A boom for entry-level segment
The tax cut has particularly benefited entry-level and commuter bike segments, which had seen muted demand over the past two years due to inflationary pressures and subdued rural income growth.
Two-wheeler makers had already signalled a recovery in September, when wholesale dispatches rose 9 per cent year-on-year (YoY) to cross the two-million mark, supported by early festive buying and the anticipation of lower taxes.
Hero MotoCorp, India’s largest two-wheeler manufacturer, saw a 5 per cent increase in dispatches to 647,582 units, while registrations jumped 19 per cent to 323,230 units. Honda Motorcycle and Scooter India (HMSI) posted a modest 3 per cent rise to 505,000 units, while TVS Motor Company registered a healthy 12 per cent growth to 413,000 units, driven by strong scooter demand.
Bajaj Auto’s dispatches climbed 5 per cent to 273,000 units, while Royal Enfield, owned by Eicher Motors, led the pack with a sharp 43 per cent jump to 113,000 units, buoyed by the popularity of its mid-size motorcycles.
Analysts said the festive period has amplified the momentum, particularly after a sluggish start in early September during the inauspicious Shraad fortnight.
“The combination of GST cuts, new model launches, and aggressive festive offers has clearly lifted consumer sentiment,” said an analyst tracking the sector.
A report by Axis Securities noted that the broader auto sector showed mixed trends in October — with strong growth in two-wheelers, three-wheelers, and commercial vehicles — even as passenger car sales softened on a year-on-year basis.
With Diwali demand expected to sustain through mid-November, industry experts believe the sector could end the year on a high, marking a strong turnaround for the mass-market two-wheeler segment.
- Published On Oct 27, 2025 at 08:37 AM IST
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