The Indian two-wheeler industry is heading into the festive season with a clear split in momentum. Export markets are firing on all cylinders while domestic demand remains measured. August and September 2026 data from major manufacturers show that overseas shipments are now the primary growth engine for several players, even as local volumes grow at a slower pace.
Bajaj Auto leads export charge
Bajaj Auto delivered a standout performance in August 2026. The company sold 4,43,748 two-wheelers during the month, a 30 percent jump over the same period last year. The real story, however, lies in the geographic split. Domestic two-wheeler sales rose 10 percent to 2,01,898 units, but exports surged 53 percent to 2,41,850 units. For the first time, overseas shipments accounted for more than half of Bajaj's total two-wheeler volumes at roughly 54.5 percent.
The trend holds across the broader portfolio. When commercial vehicles are added, Bajaj exported 2,80,056 units in August against domestic sales of 2,55,708 units. Exports grew 51 percent year-on-year while domestic volumes increased 10 percent. Over the first five months of FY27 (April to August), the company has shipped 12,66,714 vehicles abroad compared to 11,81,978 units sold in India. Total exports are up 50 percent while domestic growth stands at 13 percent.
Bajaj's commercial vehicle business also posted strong numbers. Total CV sales rose 22 percent to 92,016 units in August. Domestic CV volumes grew 11 percent to 53,810 units while exports jumped 39 percent to 38,206 units. The company's overall August tally of 5,35,764 vehicles (two-wheelers plus commercial vehicles) represents a 28 percent year-on-year increase.
Royal Enfield posts steady September growth
Royal Enfield recorded 1,33,958 motorcycle sales in September 2026, marking an 8 percent increase over 1,24,328 units in September 2025. The growth was driven by the up to 350cc and electric vehicle segment, which expanded 13 percent to 1,21,495 units. The larger displacement category above 350cc declined 26 percent to 12,463 units, continuing a trend seen in recent months.
Domestic sales grew 7 percent to 1,21,326 units while exports rose 17 percent to 12,632 units. On a year-to-date basis (April to September), Royal Enfield has sold 7,09,096 motorcycles, up 20 percent from 5,91,903 units in the same period last year. The up to 350cc and EV segment leads the YTD growth at 24 percent, reaching 6,34,312 units. Domestic YTD sales are up 23 percent at 6,42,021 units. However, exports are down 5 percent year-to-date at 67,075 units, and the above 350cc segment has fallen 9 percent to 74,784 units.
The company's Flying Flea C6 electric motorcycle is now part of the up to 350cc and EV reporting bracket, contributing to the segment's strong performance. Royal Enfield is also expanding its Flying Flea retail presence in Bengaluru with new sales and service touchpoints, signalling a push to build its electric business for urban buyers.
August industry snapshot shows export dominance
Data from all four major manufacturers in August paints a clear picture. Bajaj Auto, TVS Motor, Honda Motorcycle & Scooter India, and Royal Enfield together sold approximately 17.41 lakh two-wheelers in August, up 17.5 percent from 14.82 lakh units a year earlier.
TVS Motor led in absolute volumes with 5,91,437 units, a 21 percent increase. Its domestic sales rose 18 percent to 4,33,796 units while exports grew 29 percent to 1,57,641 units. Electric two-wheelers were a bright spot for TVS, with sales more than doubling to 59,453 units from 25,138 units last year, a 137 percent jump.
Honda Motorcycle & Scooter India sold 5,79,162 units in August, up 8 percent. Domestic volumes grew 8 percent to 5,17,329 units while exports increased 15 percent to 61,833 units.
Royal Enfield posted 11 percent growth in August at 1,26,479 units. Domestic sales rose 11 percent to 1,14,204 units and exports grew 10 percent to 12,275 units. Within its portfolio, the up to 350cc and EV segment grew 15 percent to 1,13,143 units while the above 350cc category fell 13 percent to 13,336 units.
The combined export growth of these four manufacturers stood at roughly 37 percent year-on-year in August, while combined domestic growth was around 11 percent. This gap highlights how international markets are currently outperforming the home market.
Export momentum builds on broader recovery
The June quarter data from the Society of Indian Automobile Manufacturers shows motorcycle and scooter exports rose nearly 37 percent to 1.5 million units from 1.1 million a year earlier. Bajaj Auto and TVS Motor together accounted for nearly two-thirds of these shipments. Bajaj exported a record 6,36,005 two-wheelers in the June quarter while TVS Motor posted its highest-ever international sales at 4,19,737 units.
Global demand from Africa, Latin America, and Asia is driving this export surge. Manufacturers are prioritising overseas allocations amid supply chain constraints, which has helped export volumes outpace domestic dispatches for several consecutive months.
Domestic demand remains cautious
Despite the festive season approaching, domestic two-wheeler growth has been in single digits for most major players in recent months. Bajaj's domestic two-wheeler growth was 10 percent in August. Honda's domestic grew 8 percent. Royal Enfield's domestic grew 7 percent in September and 11 percent in August. TVS posted a stronger 18 percent domestic growth in August, aided significantly by its electric scooter range.
The moderate domestic pace reflects ongoing headwinds including elevated vehicle prices, higher interest rates, and uneven rural income recovery. Entry-level segments, which traditionally drive volume, continue to face pressure. Manufacturers are relying on new model launches, feature upgrades, and electric variants to sustain buyer interest in the local market.
FAQs
What was Bajaj Auto's two-wheeler export growth in August 2026?
Bajaj Auto's two-wheeler exports grew 53 percent year-on-year in August 2026, reaching 2,41,850 units compared to 1,57,778 units in August 2025.
How did Royal Enfield perform in September 2026?
Royal Enfield sold 1,33,958 motorcycles in September 2026, an 8 percent increase over September 2025. The up to 350cc and EV segment grew 13 percent while the above 350cc segment declined 26 percent.
Which manufacturer had the highest two-wheeler sales volume in August 2026?
TVS Motor recorded the highest sales volume among the four major manufacturers in August 2026 with 5,91,437 two-wheelers sold.
How much did combined exports of the top four two-wheeler makers grow in August 2026?
Combined exports of Bajaj Auto, TVS Motor, Honda Motorcycle & Scooter India, and Royal Enfield grew approximately 37 percent year-on-year in August 2026.
What is driving the export surge for Indian two-wheeler makers?
Strong demand from Africa, Latin America, and Asia, combined with manufacturers prioritising overseas allocations amid supply chain constraints, is driving the export surge.
The festive season pulse for the two-wheeler industry shows a clear divergence. Export markets are delivering robust double-digit growth across manufacturers, led by Bajaj Auto's exceptional 53 percent surge in August. Royal Enfield's steady 8 percent growth in September, powered by its sub-350cc and EV portfolio, adds to the positive tone. However, domestic demand remains in a lower gear with most players recording single-digit growth. As the festival weeks unfold, the industry will watch closely whether local retail can match the momentum already visible in overseas shipments.
