2-W sales jump 40.70% MoM, fuelled by rural and festive demand: FADA

Two-wheelers continued to drive India’s automobile retail growth in January 2026, recording sales of 18,52,870 units, marking a 20.82% year-on-year (YoY) increase and a 40.70% month-on-month (MoM) rise, according to Federation of Automobile Dealers Associations (FADA). 

The demand engine remains anchored in rural India, accounting for nearly 56% of the market share of overall 2-wheeler space. Rural volumes grew 19.77%, which was supported by Pongal/Makar Sankranti, marriage-season footfalls and better affordability. A revival is noticed in urban markets, rising by22.19% YoY, a healthy signal of demand normalisation beyond festive-only buying. 

“Dealer feedback points to strong enquiry momentum driven by sharper customer engagement, quicker digital follow-ups, and a visible shift towards higher-value and mid-powered motorcycles. That said, selective model-wise supply constraints and aggressive competitive discounting continue to shape the near-term retail playbook in a few pockets,” the statement read. 

On a year-to-date basis, two-wheeler sales stood at 1,77,50,499 units in FY26, reflecting a 10.85% increase compared to 1,60,13,199 units in FY25, highlighted by post-GST demand momentum, improved rural cash flows from harvest cycles and weddings, and sustained mobility demand.

Fuel-wise, petrol and ethanol-powered vehicles continued to dominate with a 93.27% share in January 2026, compared to 92.49% in December 2025 and 93.21% in January 2025. Electric two-wheelers accounted for 6.63% of sales, slightly lower than 7.40% in December, but marginally higher than 6.42% a year earlier, reflecting steady but fluctuating EV adoption. CNG and LPG vehicles remained marginal, accounting for 0.10% of overall sales.

Among manufacturers, Hero MotoCorp retained its leadership position, retailing 4,92,167 units in January, though its market share slightly declined to 26.56% from 26.83% a year ago. Honda Motorcycle and Scooter India followed with 4,72,938 units, improving its market share to 25.52% from 24.42%. TVS Motor Company recorded strong growth with 3,64,241 units, increasing its share to 19.66% from 18.83%. The Bajaj Auto Group sold 1,95,752 units, though its market share moderated to 10.56% from 11.37%. Meanwhile, Royal Enfield continued to strengthen its premium segment presence, retailing 1,06,398 units and expanding its market share to 5.74% from 5.13% last year.

Outlook for February 2026

FADA says that the sentiment for February is firmly constructive, backed by supportive macros and on-ground dealer confidence as 72.56% of dealers expect growth and only 4.51% expect de-growth.

“The operating environment is being strengthened by a growth-oriented Budget with a clear infra–agri thrust, continued wedding/festival tailwinds, and RBI rate stability on top of 2025’s easing—together improving affordability, financing comfort and purchase intent. Dealers are also flagging healthier enquiry inflows versus January and stronger pipeline management as a conversion lever, with the key watch-outs being the shorter month, high base from recent strong runs, and localised factors like election-related interruptions and selective supply constraints in certain models/variants,” the statement read. 

Category-wise, 2-wheeler is expected to stay positive on improved enquiries, wedding-led mobility purchases, rural liquidity from crops, and growing acceptance of EV models—however, upside will be capped where stock/variant availability remains tight, net-net, outlook is growth to stable, with rural momentum still a key pillar.