Entry-level bikes vroom ahead on rural sentiment, rate cut push

Sub-125cc segment is 29% of motorcycle sales, 18% of two-wheeler volumes

- ANJALI SINGH

Entry-level motorcycles (110-125cc) are emerging as a key growth driver for India's two-wheeler market, thanks to improving rural sentiment, expectations of a normal monsoon, and a recent 50-basis-point (bp) rate cut by the Reserve Bank of India.

The segment grew 12.7 per cent in FY25, with sales rising to 3.6 million units, outpacing the overall motorcycle market that expanded by 5.1 per cent during the year. The category's share in total motorcycle volumes increased to 29.4 per cent in FY25 from 27.4 per cent in FY24, reflecting its growing appeal among Indian consumers.

"Entry-level buyers are highly sensitive to financing costs. The monetary easing will make two-wheeler loans more affordable and give a much-needed push to demand," Federation of Automobile Dealers Associations (FADA) President C S Vigneshwar said.

He said the sub-125cc category now constitutes 29 per cent of motorcycle sales and 18 per cent of overall two-wheeler volumes.