India Two-Wheeler Retail Sales Surge 33% to Record 17.90 Lakh Units in September 2026 as Honda Outpaces Hero

India's two-wheeler retail registrations surged to an all-time high in September 2026, clocking 17,90,188 units and registering a 33.08% year-on-year (YoY) expansion compared to the 13,45,153 units registered in September 2025, according to retail registration data published by the Federation of Automobile Dealers Associations (FADA). Month-on-month (MoM) volumes also moved up 4.41% from 17,14,610 units in August 2026, marking the segment's highest-ever monthly performance for September, surpassing the pre-Covid September peak achieved in 2018 by 15.3%.

Demand remained evenly distributed across territories over the previous year, with rural retail sales growing 33.11% YoY and urban retail expanding by 33.06%. Sequentially, urban markets posted stronger festive momentum, climbing 5.29% MoM compared to a 3.62% MoM rise in rural areas. Cumulative retail volumes for the first half of the financial year (H1 FY27) reached 1,10,43,407 units, reflecting a 20.43% expansion over the 91,69,815 units logged during the corresponding period of FY26.

OEM Market Share and Unit Registrations

The top three original equipment manufacturers (OEMs)—Honda, Hero MotoCorp, and TVS Motor—accounted for more than 70% of total retail sales during the month:

• Honda Motorcycle & Scooter India (HMSI): Maintained the pole position with 4,68,789 retail registrations, marking a 38.1% YoY increase over 3,39,537 units sold in September 2025. HMSI's market share expanded to 26.19% from 25.24% a year earlier.
• Hero MotoCorp: Secured second place with 4,34,280 units, growing 31.4% YoY compared to 3,30,500 units in September 2025. Its market share contracted marginally to 24.26% from 24.57%.
• TVS Motor Company: Finished third with 3,64,640 units, demonstrating the fastest percentage growth among large-scale legacy OEMs at 42.4% YoY from 2,56,042 units, boosting its market share to 20.37% from 19.03%.
• Bajaj Auto: Clocked 1,66,112 units to capture a 9.28% market share, growing 15.2% YoY, though its market share moderated from 10.72% in September 2025.
• Royal Enfield: Registered 1,02,226 units, delivering 22.4% YoY growth and cornering a 5.71% market share.
• Suzuki Motorcycle India: Reached 1,01,926 units, up 23.63% YoY from 82,443 units, commanding a 5.69% market share.
• India Yamaha Motor: Logged 64,292 units, growing 29.58% YoY from 49,614 units to achieve a 3.59% market share.

Powertrain Dynamics and EV Trends

Internal combustion engines powered by petrol and ethanol continued to constitute the bulk of the market, taking an 88.35% share, while alternative fuels like CNG and LPG represented 0.07%.

Electric two-wheeler (EV) adoption accelerated sharply, with the segment's overall penetration reaching 11.58% in September 2026, up from 10.68% in August 2026 and 8.17% in September 2025. Pure-play EV makers experienced divergent trends:

• Ather Energy: Retained leadership among dedicated electric OEMs, logging 30,533 retail registrations, an increase of 55.62% YoY from 19,620 units, taking its market share to 1.71%.
• Ola Electric: Registered 13,451 units, representing a 2.96% YoY contraction from 13,862 units, resulting in its overall retail market share slipping to 0.75% from 1.03%.
• Emerging EV OEMs: Greaves Electric Mobility sold 9,316 units (up from 4,352), River Mobility reached 5,556 units (up from 1,895), and BGauss Auto registered 5,023 units (up from 2,524).

Outlook for Indian Auto Equities

The operational performance across dealerships demonstrates healthy baseline inventory movement as the festival cycle gets underway. FADA noted that while Shraadh-related purchase postponements slowed momentum in late September, conversion rates are expected to ramp up strongly through the festive period of Navratri and Diwali. Key variables for investors tracking auto stocks over the third quarter of FY27 include OEM supply stability in high-volume entry-level segments, financing accessibility, and the persistence of positive rural cash flows post-harvest.

Tags: Hero MotoCorp TVS Motor Company Bajaj Auto Ather Energy Ola Electric FADA