India’s scooter market is poised to surpass its pre-pandemic sales volumes, with growth rates more than three times faster than motorcycles in the current fiscal year.
Between April and February 2025, scooter sales rose by 16.6%, reaching nearly 6.3 million units.
Experts believe that scooter sales will not only exceed the 6.7 million units of FY19 but could even surpass the record 6.72 million units achieved in FY18, according to data from the Society of Indian Automobile Manufacturers (SIAM).
Motorcycle Sales Lag Behind Scooters
In comparison, motorcycle sales have shown a modest growth of about 5%, totaling 11.2 million units in FY25 so far.
This is significantly below the 13.6 million units sold in FY19.
While scooter sales saw a slight 0.5% decline year-on-year in February, the motorcycle segment witnessed a sharp 13% drop.
Despite this, the overall two-wheeler market has grown by about 9% in the first 11 months of the fiscal year, driven largely by the growth in scooter sales.
Pramod Amthe, head of institutional equity research at InCred Capital, expressed confidence that scooter sales will cross pre-pandemic levels this fiscal, driven by increased discounts, new launches, and the growing trend of electrification in the segment.
Projections For FY25: Over 7 Million Scooters
At least three brokerages are optimistic that scooter sales will surpass the pre-pandemic barrier, with Kotak Institutional Equities projecting sales to exceed 7 million units in FY25.
Rishi Vora from Kotak highlighted that trends for the scooter segment remain strong, bolstered by urbanization, increased market penetration, and tax cuts announced in the budget.
However, the brokerage also cautioned that the motorcycle segment has experienced demand moderation, particularly in the entry-level segment, due to weak consumer sentiment and financing challenges.
The share of motorcycles in the overall two-wheeler market has been steadily shrinking.
From 63.1% at the start of fiscal 2023, motorcycles now account for just 60.7% of the market as of Q3 FY25. This shift reflects a growing consumer preference for scooters, especially in urban areas.
Electric Scooters Market Fuel Growth
The electric scooter segment has seen significant growth, with major players like Ola Electric, Bajaj Auto, TVS Motor, and Ather Energy introducing new models.
In 2024, sales of electric two-wheelers reached approximately 1.15 million units, capturing 6.3% of the total two-wheeler market, according to data from the Federation of Automobile Dealers Association (FADA).
Bajaj’s new Chetak e-scooter, launched in December 2024, along with new variants from Ather and Ola Electric, has contributed to the expansion of the electric two-wheeler market.
Additionally, Suzuki launched its first electric scooter, the e-access, in January 2025.
Government schemes like the PM E-Drive offer incentives worth ₹10,000 per electric scooter, providing a further edge to electric scooters in the market.
This is expected to continue driving sales, particularly as consumers increasingly prefer electric vehicles due to their lower total cost of ownership compared to entry-level motorcycles.
The entry-level motorcycle segment, especially in the 75-110cc category, has seen a decline in sales.
This segment’s share in total motorcycle sales fell from 61.9% in FY19 to 46.5% in the first 10 months of FY25, indicating a shift away from traditional motorcycles toward scooters and higher-end models.
TVS Outperforms In Scooter Market
TVS Motor has shown impressive growth in the scooter market, recording a 23% increase in sales during the fiscal year (April to February 2025). In contrast, market leader HMSI grew by only 12%, while Hero MotoCorp experienced a 5% decline.
Notably, TVS’s newly launched Jupiter 110 has seen strong demand, with sales growing by 40% year-on-year in February 2025, while Activa sales dropped by 13%.
Analysts are particularly bullish on TVS’s prospects. Motilal Oswal noted that TVS was the only company to post double-digit growth in February 2025, while the overall industry saw a 5% decline.
Kotak Institutional Equities has also upgraded its recommendation for TVS shares, citing strong growth potential.
Also Read: India’s Private Sector Economy Ends Fiscal Year Strong, Driven By Manufacturing Growth
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