Bajaj Auto’s domestic motorcycle business has come under sustained pressure in recent years, with the company steadily ceding market share in its core segments as rivals Hero MotoCorp Ltd. Hero MotoCorp Ltd. and TVS Motor Company Ltd. Motor Company strengthen their positions in the increasingly competitive two-wheeler market.
Data sourced from a recent Motilal Oswal report, shows that Bajaj Auto’s overall motorcycle market share has declined from 18.5% in FY20 to 16.6% in FY25, slipping further to around 16% on a year-to-date basis in FY26. The erosion has been most pronounced in the 125cc and 150–250cc categories, segments that have historically formed the backbone of Bajaj’s domestic volumes and profitability.
Motorcycle market
In contrast, TVS Motor has steadily gained ground over the same period. Its share of the motorcycle market rose from about 15.5% in FY20 to nearly 19% in FY25, reflecting consistent gains across both premium commuter and mid-capacity motorcycles. Hero MotoCorp, while also seeing some moderation, continues to dominate the segment, with its market share easing from around 36% in FY20 to about 32.5% in FY25.
The pressure on Bajaj Auto is particularly visible in the 125cc segment, which has emerged as the fastest-growing category in the motorcycle market. Bajaj’s share in this segment peaked at 27% in FY24 but declined to 24.3% in FY25 and further to 23.3% in the year-to-date period of the current fiscal.
Over the same period, TVS Motor expanded its leadership sharply, with market share rising from 40.9% in FY24 to 45.4% in FY25 and further to about 48.3% in FY26 so far. Hero MotoCorp’s share in the 125cc segment stood at 17.0% in FY24, increased to 19.3% in FY25, before moderating to around 16.0% on a year-to-date basis.
Why is this shift significant?
The shift is significant because the 125cc category is increasingly attracting both first-time buyers and upgraders seeking better features, styling and performance without a steep increase in ownership costs. Rivals, particularly TVS Motor and Hero MotoCorp, have aggressively refreshed their 110–125cc commuter portfolios, rolling out frequent updates, new variants and feature additions to sustain demand and defend volumes.
A similar loss of momentum has been visible in Bajaj Auto’s traditional stronghold, the 150–250cc segment led by the Pulsar range. Bajaj’s market share in this category has declined from 34.6% in FY24 to about 30.9% on a year-to-date FY26 basis, reflecting intensifying competition from both established brands and newer launches.
During the same period, TVS Motor’s share climbed from 21.3% in FY24 to 24.6% in FY25 and further to nearly 29.9% in FY26 so far, sharply narrowing the gap with Bajaj. Hero MotoCorp’s share in the segment stood at 16.3%, 21.6% and 19.1%, respectively.
TVS Motor has emerged as one of the biggest beneficiaries of this competitive churn. The company has consistently gained share across premium commuter and mid-capacity motorcycles, supported by faster product refresh cycles, feature-rich offerings and stronger execution at the retail level. Its focus on design, technology and variant expansion has enabled TVS to steadily chip away at Bajaj Auto’s long-standing dominance in the 150cc-plus space.
Bajaj Auto management told analysts at Motilal Oswal, that to address the slide in domestic market share, the company has outlined multiple model interventions across segments, including refreshes to the Pulsar range.
Interventions in the Dominar brand and new launches in higher displacement categories, including KTM and Triumph-linked models, are also on the cards. However, in the crucial 125cc commuter segment, a key new product is expected only in FY27.
Analysts cautioned that the delayed timing of the 125cc launch suggests a meaningful near-term recovery in Bajaj Auto’s domestic motorcycle market share may remain challenging, even as competitive pressure from Hero MotoCorp and TVS Motor continues to intensify.
