Bajaj Auto has indicated that geopolitical tensions in West Asia are beginning to affect demand trends in the Indian two-wheeler market. According to the company, the motorcycle industry witnessed slower growth in April compared with the strong momentum seen in the previous quarter.
The impact has been more visible in the entry-level category, while demand for premium motorcycles and electric scooters has remained comparatively resilient amid changing consumer preferences and rising concerns around fuel costs, as per The Economic Times report.
Bajaj Auto stated that the motorcycle industry’s growth rate slowed significantly in April after recording stronger expansion during the fourth quarter of FY26.
The company noted that the sector, which had previously been growing at around 20%, reported growth of roughly 9% in April. Management indicated that this shift marked a noticeable change in market momentum between March and April.
According to the company, the slowdown may continue over the coming months, with overall industry growth expected to remain in the range of 7% to 9%.
The company attributed the moderation in demand partly to the ongoing geopolitical situation in West Asia. Bajaj Auto said the conflict has led to several economic and operational challenges, including LPG shortages, supply chain disruptions, inflationary pressures, and softer consumer sentiment.
The company also highlighted difficulties linked to manpower availability and outbound logistics, particularly in export markets. These factors have contributed to increased complexity across operations and distribution channels.
Bajaj Auto indicated that the slowdown has been more pronounced in the entry-level motorcycle segment, which is generally more sensitive to inflation and fuel price expectations.
Rising living costs and concerns over potential increases in petrol prices appear to be affecting consumer purchasing decisions in lower-priced categories. The company suggested that affordability concerns are influencing demand patterns across the mass-market motorcycle segment.
Despite weaker growth in entry-level motorcycles, Bajaj Auto said demand for motorcycles above 150cc remains relatively stable. The company noted that this segment is continuing to expand at a faster pace than the broader industry.
Management stated that the premium category is expected to grow at nearly twice the overall industry growth rate. Bajaj Auto has a significant presence in the higher-capacity motorcycle market, which may support its performance amid softer demand elsewhere.
The company also observed a shift in customer preference towards electric scooters as fuel price concerns influence buying behaviour. Bajaj Auto said sales of its electric scooter brand, Chetak, continued to record strong growth in April after reporting robust performance during the previous quarter.
According to the company, electric scooter demand has been rising faster than internal combustion engine (ICE) scooters, reflecting changing consumer preferences in urban markets.
Bajaj Auto said fuel prices continue to play an important role in shaping consumer sentiment within the two-wheeler market. Expectations of higher petrol prices are encouraging some buyers to consider electric mobility alternatives.
The company suggested that inflationary concerns and operating cost considerations are becoming increasingly relevant factors in purchasing decisions, particularly among value-conscious consumers.
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Bajaj Auto’s comments reflect emerging challenges in the motorcycle industry amid geopolitical uncertainty and changing economic conditions. While growth in the entry-level segment has moderated, demand for premium motorcycles and electric scooters remains comparatively stable. The company indicated that broader market conditions, fuel prices, and consumer sentiment are likely to continue influencing industry performance in the coming quarters.
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Published on: May 7, 2026, 12:25 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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