Honda Motorcycle & Scooter India became the country's top two-wheeler retailer in July, with 4.49 lakh units sold, surpassing Hero MotoCorp for the first time this year. While the industry saw a 22.3% year-on-year growth in retail registrations, volumes slowed slightly from June due to seasonal monsoon effects.
Honda Leads Retail Rankings in July
Honda Motorcycle & Scooter India (HMSI) has moved to the top position in India’s two-wheeler retail market for July, breaking Hero MotoCorp’s six-month streak of leading the monthly sales charts. According to VAHAN retail registration data, HMSI recorded 4,49,473 vehicle registrations, reflecting a 23% increase compared to the same month last year. Hero MotoCorp followed closely with 4,19,456 units, which represents a 20.6% year-on-year growth.
This shift in retail rankings is significant as it highlights changing consumer demand patterns within the competitive entry-level and commuter two-wheeler segments. While Hero MotoCorp has historically dominated the market through its deep penetration in rural areas with its commuter motorcycle portfolio, Honda’s growth is driven by its strong performance in both the scooter and motorcycle segments.
Sector Growth and Seasonal Trends
The broader two-wheeler industry showed resilience, with total retail registrations across all brands rising to 1,734,624 units in July, a 22.3% increase from the 1,418,774 units reported in the previous year. Despite this strong year-on-year performance, the industry faced a 5.8% decline in volumes compared to June. Industry experts attribute this dip to the annual monsoon season, which typically results in lower footfall at dealerships and a temporary reduction in purchasing activity across many parts of the country.
Performance of Major Manufacturers
Beyond the top two players, other major manufacturers also reported growth in July. TVS Motor maintained the third position with 357,819 registrations, achieving the highest year-on-year growth among the top three players at 27.4%. Bajaj Auto recorded 171,790 registrations, an increase of 17.1% over the previous year. Meanwhile, Royal Enfield continued its steady expansion with 25.3% growth, recording 90,501 registrations, while Suzuki Motorcycle India and Yamaha also saw positive growth of 4% and 23.6% respectively.
Outlook for the Coming Months
Market experts from CRISIL expect the retail momentum to continue despite the current seasonal softening. Projections suggest that the industry is well-positioned for the upcoming festive season, which usually brings a spike in consumer demand. Key factors expected to support this growth include a recovery in the rural economy and steady replacement demand from existing vehicle owners. Investors will continue to watch how the market share gap between Honda and Hero MotoCorp evolves in the coming months, particularly as festive season schemes and new product launches influence consumer choices. The sustainability of internal combustion engine (ICE) vehicle sales will also remain a key area for analysis as the industry tracks the gradual transition toward electric two-wheelers.