The domestic two-wheeler industry continued to see robust growth in the first five months of FY27, supported by the demand boost following last year’s GST rate reduction. But the shift towards higher-capacity motorcycles has been particularly pronounced, with the 200–250cc segment nearly doubling even as Hero MotoCorp, the country’s largest two-wheeler maker, moved in the opposite direction.
The 200cc-and-above but up-to-250cc motorcycle segment was the only engine-capacity category to nearly double, with sales rising 91.8% to 130,739 units during April-August FY27 from 68,166 units in the corresponding period of FY26, according to SIAM data.
The growth was led by the segment’s largest players. Bajaj Auto’s sales rose 93.7% to 73,223 units from 37,796 units a year earlier, while TVS Motor increased sales 91.4% to 51,036 units from 26,670 units. Suzuki Motorcycle India posted a 135.8% increase to 4,312 units from 1,829 units, while Kawasaki more than tripled sales, albeit from a small base.
Hero MotoCorp, however, moved in the opposite direction. Its sales in the category declined 18.2% to 1,318 units from 1,611 units a year earlier.
The divergence comes at a time when premium motorcycles have become a key growth priority for Hero. The company has expanded its premium portfolio in recent years with the Xtreme, Xpulse and Karizma, while also building a dedicated Premia retail network.
However, Hero did not introduce a new 200–250cc motorcycle post GST cuts in September last year. Its next major quarter-litre offering, the Karizma XMR 250, was still awaiting launch during the period.
Hero’s competitors have been expanding their presence in the same market with established products. Bajaj has a broad portfolio spanning the Pulsar and Dominar families, while TVS has the Ronin and Suzuki sells the Gixxer and V-Strom in the segment.
TVS, in particular, has seen strong traction for the Ronin. The model accounted for more than 35% of the 200–250cc segment.
For Hero, the challenge is therefore not simply to add another motorcycle to its portfolio but to build sufficient scale in a segment where rivals already have products with established customer bases.
“Bajaj and TVS have built a wider premium motorcycle proposition around performance, styling and features. Hero has products in the segment, but the company needs a stronger product pipeline and sustained volumes rather than relying on upgrades to existing nameplates,” said a sector expert.
Hero’s own strategy points to the scale of the task. In its FY26 annual report, the company identified premium motorcycles as one of its product priorities and said it plans new motorcycles in the 150–350cc range. But the 200–250cc segment has not seen any new nameplate yet.
The company’s Premia network currently houses the Xtreme 250R, Xpulse 210 and Karizma XMR, along with Harley-Davidson and other premium products.
Industry observers say the upcoming Karizma XMR 250 could help Hero strengthen its presence in the quarter-litre segment, but a facelift model may not be enough to close the gap with rivals that have multiple products across the performance motorcycle market.
“Hero cannot rely on Karizma alone. The company needs a sustained stream of products in the segment, similar to what TVS has achieved with the Ronin and what Bajaj has built around Pulsar and Dominar,” said the expert.
Sector experts believe the segment is set for robust growth in the coming years as consumers gradually move beyond entry-level motorcycles towards models offering greater power and performance. The 200–250cc category, they say, offers a balance of performance, features, and affordability, making it an attractive step-up option for buyers upgrading from commuter motorcycles.
