The biggest motorcycle makers are doubling down on the affluent rider instead of the traditional interest in the budget-conscious commuter. Hero MotoCorp Ltd, Bajaj Auto Ltd, and TVS Motor Co. Ltd are bulking up their premium models, betting that the top-end segment will help shield them if market growth cools down.
The strategy comes as motorcycles with engine capacities more than 125cc outpace the mass market by a wide margin. While entry-level sales were at 3% to 9.5 million units in fiscal 2026, the premium category surged 15% to 3.5 million units, according to Society of Indian Automobile Manufacturers (SIAM) data, fuelled by tax incentives and a growing middle class looking at upgrades.
For these manufacturers, the stakes extend beyond brand strength. The West Asia war and erratic monsoon forecasts have cast doubts on rural demand, which has been the backbone of the two-wheeler sector. By moving upmarket, companies are targeting consumers who are mostly immune to the inflationary pressures that affect lower-income households.
The race for dominance is now showing itself in exclusive retail footprints and a flurry of higher-end launches. From Hero’s Premia network to TVS’s global relaunch of the well-known Norton brand, the industry is going through its most significant shift in a decade, seeking to replicate the success of segment leader Royal Enfield.
“If the demand environment gets negatively affected, then the first segment that really gets impacted is the entry-level segment, because that is where the weaker, financially weaker customer resides,” Rakesh Sharma, executive director at Bajaj Auto, told Mint in an interview.
- Premium motorcycles grew 15% while entry-level sales stagnated at 3% growth rate.
- Higher profit margins in premium bikes offset rising costs from geopolitical conflicts.
- Manufacturers use high-end bikes to hedge against rural inflation and weak monsoons.
- Hero MotoCorp aims to reach 225 exclusive Premia retail stores by 2027.
- TVS is relaunching the British brand Norton to compete in the global super-premium segment.
To cash in on the growth, motorcycle players have put in place their strategies to help them cash in on the growing market. In a meeting with analysts from Motilal Oswal, Hero Motocorp’s management noted that the company will double down on its premium products and stores.
Retail expansion and brand alliances
“HMCL’s premium network (Premia) has now expanded to 106 exclusive stores, covering over 50% of the premium two-wheeler market footprint. This is likely to ramp up to 125 by March 2026 and further to 225 by March 2027,” Motilal Oswal analysts wrote in a 13 April note.
“The company’s upcoming new launches would include Xtreme variants in the premium segment, the recently unveiled HD 440, and a few Vida variants. HMCL also plans to launch a couple of upgrades in the premium segment in FY27,” they added.
Queries for comments sent to Hero MotoCorp, TVS Motor, and Honda Motorcycle and Scooter India remained unanswered.
Bajaj and TVS have also begun their own premium product offensive for the year, with both companies launching new engine variants and upgrades for their products.
In April, Bajaj launched the new Dominar 400 with a 350cc engine, along with the launch of the KTM 390 Duke range with a 350cc engine. At the beginning of the year, Bajaj indicated that there are eight launches in the pipeline in the 125cc segment, which will be rolled out periodically. Additionally, the company will also expand the network for its premium bike brands KTM and Triumph.
On the other hand, TVS upgraded its TVS Apache RTR 160 with the launch of two new variants in March in a bid to bolster its lineup above the 125cc segment. Moreover, TVS is launching its premium motorcycle brand Norton this year in India as well as in the global markets, about six years after it acquired the British premium bike brand.
Norton has so far unveiled four new products, which will hit the market this year in India and markets in Europe, among others.
Following a lead
“These products are going to hit the market in 2026 this year. You will see the growth coming, and they are super premium, and it is going to definitely delight the customers globally,” K.N. Radhakrishnan, director and chief executive of TVS Motor, had said in the 28 January earnings call for the October to December quarter.
Experts suggest that numbers posted by premium bikemakers like Royal Enfield suggest that there is a large market for premium motorcycles.
“Enfield posted a million sales, which must have indicated to the managements of other companies that there is at least a market for a million more out there which can be tapped to get good growth,” Deepesh Rathore, founder and head of research at InsightEV, a two-wheeler consultancy, said.
“Crucially, the premium segment yields much more margins for these companies, and they are comparatively more insulated from economic slowdowns or weak monsoons, which affect the entry-level segment in a big way,” he added.