September Sales Report: Two-Wheelers Drive Indian Auto Sector with 6.7% Growth

Image Source: The Economic Times

India’s two-wheeler sales grew 6.7% year-on-year in September 2025, reaching robust volumes despite headwinds faced by passenger vehicle sales. Driven by rural demand, festive buying, and scooter segment growth, two-wheelers continue to steer the Indian auto market, signaling strong consumer confidence and mobility demand across regions.

The Society of Indian Automobile Manufacturers (SIAM) reported that India’s domestic two-wheeler sales increased by 6.7% in September 2025 compared to the same month last year. This positive momentum contrasts the passenger vehicle segment which experienced a decline, highlighting two-wheelers as the growth engine of the Indian automotive industry.

Scooters and motorcycles remain the largest contributors, with scooters witnessing notable demand from urban and semi-urban consumers, and motorcycles continuing their popularity in rural markets. The rise in disposable incomes, favorable financing options, and the growing need for affordable personal mobility solutions have been key growth drivers.

Market Dynamics and Consumer Preferences

The growth is partly driven by the ongoing festive season, which traditionally boosts vehicle purchases across categories. Additionally, reduced GST rates on two-wheelers have made these vehicles more accessible, translating into increased bookings and showroom footfalls. Rising fuel efficiency concerns and a shift towards electric two-wheelers also shape consumer preferences in this dominant segment.

Industry experts point out that while passenger vehicles saw recalibrated dispatches affecting volume growth, two-wheelers capitalized on pent-up demand and are effectively catering to India’s diverse mobility needs, from daily commuting to aspirational buying.

Key Highlights

Two-wheeler sales up 6.7% in September 2025 compared to September 2024.
Growth fueled by rural demand, festive season buying, and GST rate cuts.
Strong scooter segment performance alongside steady motorcycle sales.
Contrasts passenger vehicle sales which faced an 8.8% decline in September.
Two-wheelers continue to be a critical pillar for the resilience of India’s auto sector.

Outlook for the Two-Wheeler Industry

With rising urbanization, infrastructure improvements, and increasing preference for personal mobility, the two-wheeler segment is poised for sustained growth. Manufacturers are increasingly investing in electric and hybrid two-wheelers to capture evolving consumer trends. The segment’s resilient performance bodes well for the automotive industry’s overall recovery and growth trajectory in 2025-26.

Sources: SIAM, Business Standard, Economic Times, SIAM Press Release

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