Premium Motorcycles Gain Traction in India as Buyers Shift Towards Higher Capacity Models

India’s motorcycle market is witnessing a gradual shift in consumer demand, with buyers increasingly opting for higher-capacity and premium models. Changes in affordability, evolving lifestyle aspirations and supportive policy measures have contributed to this transition. 

According to the Economic Times report, industry data indicates that motorcycles with larger engine capacities are gaining share, signalling a structural change in purchasing behaviour within the two-wheeler segment.

Rising Share of Premium Motorcycles

Motorcycles with engine capacities of 125cc and above have steadily increased their presence in overall industry sales. During the first ten months of FY2026, this category accounted for around 26% of total motorcycle volumes, compared with approximately 22.1% in FY2020.

The segment had already shown progress earlier, contributing about 24.4% of total motorcycle sales in FY2025. The upward trend suggests a gradual move towards higher-value products within the market.

Impact of Affordability and GST Rationalisation

Improved affordability has played a role in supporting demand for premium motorcycles. Price adjustments following the reduction in Goods and Services Tax (GST) rates last year helped make higher-capacity models more accessible to buyers.

Industry observers note that stronger financing availability and rising disposable incomes have also encouraged consumers to consider motorcycles positioned above entry-level categories.

Shift Towards Mid-Capacity Motorcycles

While entry-level motorcycles up to 125cc continue to dominate overall volumes with a large share of the market, demand growth is increasingly visible in the 150cc–350cc range.

Industry analysis indicates that the share of these mid-capacity motorcycles has risen in the current fiscal year, reflecting gradual premiumisation rather than a sudden change in demand patterns. 

Despite this progress, premium motorcycles still represent a relatively small portion of total industry sales.

Market Share Changes Among Manufacturers

The shift towards premium motorcycles has influenced competitive dynamics among manufacturers. Companies with stronger offerings in higher capacity segments have gained market share.

Royal Enfield has expanded its presence in the 125cc-plus category, supported by models such as the Bullet and Hunter. TVS Motor has also increased its share during the same period. In contrast, Bajaj Auto’s share in this segment has declined as market preferences evolved.

Changing Consumer Preferences

The move towards premium motorcycles reflects broader changes in consumer expectations. Buyers are increasingly prioritising performance, design and brand positioning alongside basic mobility needs.

Higher engine capacity models are also being viewed as lifestyle products rather than purely functional purchases, particularly among younger urban consumers.

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Conclusion

India’s motorcycle market is gradually transitioning towards higher-capacity and premium models as affordability improves and consumer aspirations evolve. Although entry-level motorcycles continue to account for the majority of sales, the steady rise in premiumisation indicates a structural shift that may influence product strategies and competition within the two-wheeler industry in the coming years.

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