Scooter Sales FY 26 in India: Honda is holding its own as TVS becomes the biggest winner in the record year.
The scooter market in India has reached new heights in 2025-26 financial year with sales of more than 8.1 million units, which is 18.5 percent higher than the last year. The spurt highlights the increasing popularity of the segment as a convenient, fuel-saving option in daily commuting in both cities and towns as the overall two-wheeler market reached a new all-time high of 21.7 million units.
Honda Motorcycle and scooter India maintained its leadership and shipped 3.16 million scooters and recorded an 11 percent yearly growth. However, it lost its market share to 39 percent in 2011 as compared to 41 percent the previous year which shows an increasing competition. The all time Activa family kept topping sales charts, instilling a firm presence of Honda in mass-market segment where reliability and a network of service stations are still the determinants.
However, the most obvious winner was TVS Motor Company. The scooter-producer based in Chennai sold 2.30 million units, which is a strong growth of 27 percent, and boosted its market share up to 28 percent. The performance was propelled by strong sales of its petrol-powered Jupiter and Ntorq models, and consistent growth of its electric iQube. According to industry observers, TVS has managed to strike a balance between conventional and an increasingly electric line up, targeting both the price-conscious consumer and the consumer who is looking at the more environmentally friendly.
The larger swing was as a result of a combination of factors. Better incomes in the rural areas, good monsoon seasons and festive offers contributed to boosting demand in the small towns and villages. Policy changes such as a bit of the new GST regime helped affordability in the second half of the year, too. Meanwhile, electric scooters were able to cut a bigger piece of the pie, and their market share had now reached approximately 13 percent as consumers were becoming more comfortable with the idea of reduced costs of running them in the face of unpredictable fuel prices.
To Honda, the slight share decline is a lesson to innovate even to the market leaders to keep off the agile competitors. It has been relying on its Activa and Dio products, but the threat of TVS and new electric-oriented entrants, the next few years will challenge its position to keep its crown. TVS, in the meantime, has left one of its major competitors, namely the latter, absolutely no doubt that it is no longer happy with being the second player in the game and that it is gradually catching up with the leader by diversifying its products and improving its pricing strategies.
These figures are also reflective of broader Indian mobility patterns. Scooters have sneakily become the workhorse of urban and semi-urban transport, providing a comfortable alternative in between motorcycles and cars. As the economy normalises and expectations about younger purchasers increase, the resilience of the segment is an indication of future growth as the industry contends with the gradual yet certain shift to electrification.
Both Honda and TVS have something to celebrate as FY26 ends on an optimistic note. One was on the defensive and the other was acquiring territory with truly remarkable rapidity. In the case of the huge market of two-wheelers in India, it is quite obvious what the message is: convenience, value and future-oriented decision-making are steering the wheels.
