Bajaj Auto faced a double setback in April: not only did its retail market share in the domestic two-wheeler segment fall to a 30-month low, it also lost its position as the country’s second-largest motorcycle manufacturer to Honda Motorcycle and Scooter India (HMSI).
According to vehicle registration data from the Federation of Automobile Dealer Associations (FADA), the Pune-based company’s market share slipped to 10.85% in April, its lowest since October 2022, when it stood at 9.98%. The decline comes amid rising competition from Honda and TVS, both of which have strengthened their presence through refreshed product portfolios.
Bajaj Auto’s strategic absence from the petrol scooter segment, which now accounts for more than a third of the two-wheeler market, has weighed heavily on its domestic performance. The company only operates in motorcycles and electric scooters, unlike its peers who are strong players in both.
Scooters made up 35% of the two-wheeler market in FY25, up from 32% in FY24, buoyed by strong performances from Honda’s Activa and TVS’s new Jupiter. Honda and TVS together dominate this segment with a 68% share.
Total scooter volumes touched 6.85 million units in FY25, a 17% rise over the previous year. In contrast, motorcycle sales grew just 5% to 12.25 million units, as per data from the Society of Indian Automobile Manufacturers.
While the motorcycle category did grow, Bajaj Auto failed to keep pace. Analysts attribute this to under-performance in its entry-level and sub-200cc premium segments. Honda’s Shine range, especially the Shine SP and Shine 100, gained considerable ground, helping HMSI edge past Bajaj to become the country’s second-largest motorcycle maker in FY25.
A report by Motilal Oswal noted that Bajaj’s overall two-wheeler growth during the March quarter was entirely driven by exports, which rose 19% year-on-year. Domestic sales, on the other hand, fell by 7%.
Exports now contribute 45% to Bajaj Auto’s total volumes, reaching 1.67 million units in FY25, a 13% jump over FY24. The company remains the country’s largest two-wheeler exporter, followed by TVS.
Over the past few years, Bajaj has increasingly pivoted to exports, electric vehicles, and partnerships with global brands like KTM and Triumph. In the domestic electric two-wheeler market, its Chetak continues to rank among the top three sellers.
The overall two-wheeler market grew 9% in FY25 to 19.6 million units. If FY26 reaches the higher end of growth estimates, projected between 6% and 9%, the industry could surpass its previous record of 21.17 million units set in FY19.
However, momentum has slowed in the last five months, with domestic volumes dropping 5% since December, driven primarily by weakening motorcycle sales. High loan interest rates and cautious consumer sentiment have contributed to the decline.