New Delhi: India's legacy two-wheeler makers, including Hero MotoCorp Ltd, Bajaj Auto Ltd and TVS Motor Company Ltd, are revamping their organisations and retail strategies to drive growth in electric and premium motorcycles and scooters.
The leading two-wheeler makers are undertaking a series of measures, including integrating their electric vehicle (EV) businesses with core two-wheeler operations, creating dedicated leadership roles for high-growth segments and rolling out exclusive retail networks to boost sales.
Analysts said rising EV sales have prompted companies to integrate their electric businesses more closely with core two-wheeler operations, while premium vehicles require a differentiated marketing strategy.
EV integration
EV sales surged 22% to 1.4 million units in financial year 2026 (FY26) while premium motorcycles sales, defined as those above 125cc engine capacity, increased 15% to 3.5 million units, according to the Society of Indian Automobile Manufacturers (Siam) data. Entry-level sales rose 3% to 9.5 million units in FY26.
Bajaj Auto has merged its standalone electric two-wheeler business with its legacy two-wheeler division to scale up EV manufacturing, plans to double exclusive EV outlets to 1,000 over the next two years, and is expanding its KTM and Triumph dealership network to strengthen its presence in the premium motorcycle segment.
“Domestic two-wheelers, to capture some synergies, we have brought our electric two-wheeler business under the umbrella of the two-wheeler business unit,” Rakesh Sharma, joint managing director at Bajaj Auto, said in an earnings call on 21 July.
Sharma also explained how the company’s retail store strategy is evolving for both its electric two-wheeler business through the Chetak brand and the premium motorcycle brands KTM and Triumph.
“I think, 530-550 stores to 1,000 stores. I can see 1,000 stores coming in a couple of years. And now that's something solid we are talking about. Those number of stores with the brand Chetak with a full portfolio, I think should set us up very, very nicely,” Sharma said. For its Triumph and KTM brands, it has rolled out 90 stores where both brands are available as part of its premium dealership playbook.
To be sure, TVS Motor Company and Bajaj Auto lead the Indian electric two-wheeler market.
Earlier this week, Hero MotoCorp announced it has created a dedicated premium business leadership division and expanded premium retail outlets. This followed the company's appointment of Kausalya Nandakumar as chief business officer of its Emerging Mobility Business Unit in July last year, creating a separate leadership role for its EV business.
On Monday, the New Delhi-based two-wheeler maker also announced the appointment Anuj Dua as chief business officer to lead its premium segment, overseeing portfolio expansion and the rollout of exclusive retail stores.
“Driven by strong FY’26 momentum, the company is sharpening its focus on the premium segment through dedicated leadership, an expanding product portfolio, differentiated retail experiences and global partnerships,” the company had said in its statement on the appointment.
Hero MotoCorp pointed to the launch of multiple new products across motorcycles and scooters, including the Glamour X, Xtreme 125R, Xtreme 250R, Xoom 160, XPulse 210 and the Harley-Davidson X440 T in FY26, as a key marker of its aggressive expansion.
“The company also expanded its exclusive Hero Premia retail and service network to more than 130 stores across India,” it said in its statement.
TVS Motor combined its EV and commuter business leadership in FY26 to improve planning and execution while creating a new TVS Paddock retail network for premium vehicles. The company also elevated Aniruddha Haldar to lead its EV business in addition to his existing responsibilities as head of the commuter business and corporate brand and media during the last financial year.
According to two TVS Motor executives, the integration with the commuter business, which serves the mass market, has enabled better planning and expansion of the business.
“EV is now not seen as a separate isolated business but instead as a core part of the mainstream two-wheeler business which has been helped by bringing it together with the commuter business,” one of the two executives cited earlier said, both speaking on condition of anonymity.
TVS did not respond to Mint's queries on how it sees the integration helping its overall business.
In June, TVS announced the roll-out of a new exclusive network of stores, TVS Paddock, which will be dedicated for its premium portfolio.
“TVS Paddock is scheduled to be launched in Q2 FY27 through an exclusive premium retail channel, purposefully designed to deliver a bespoke and elevated customer experience, reflecting the brand's heritage, craftsmanship, and premium positioning,” the company said in its announcement.
In its latest earnings call, the company’s management said it is investing in brand building initiatives to solidify a premium positioning.
“On premium products and also, we are putting a lot of investments in brand-building initiatives, and I'm very sure our products like Apache, is going to do extremely well along with Ronin,” KN Radhakrishan, chief executive at TVS Motor, said in an earnings call on 21 July.
Analysts said the commentary from these companies suggests that managements recognise the need to make EVs a core driver of future growth and strengthen their presence in premium segments.
“The EV segment is large enough and growing, so these companies do not have to see this as an experiment of market demand,” Subhabrata Sengupta, partner at Avalon Consulting, said.
“EVs and premium vehicles are urban-focused segments. The companies are getting there in terms of tweaking their structure and retail network to meet the demand,” Sengupta added.