India's largest two-wheeler maker, Hero MotoCorp Ltd, reported total dispatches of 7,34,403 units in October 2026, registering a year-on-year growth of 16% compared with 6,35,808 units in the same month last year, according to reports from CNBC TV18. The growth was driven by the company's domestic internal combustion engine business, which recorded dispatches of 6,75,017 units, up 14% from 5,90,806 units in October 2025. Scooters and 100cc motorcycles led the growth in the domestic ICE segment. This strong performance comes amid broader industry growth, with Bajaj Auto posting 13% YoY growth to 5,01,194 units and TVS Motor Co. achieving remarkable 28% growth to 6,70,679 units in October 2026.
India's electric two-wheeler market achieved a historic milestone in October 2026, with registrations hitting a record 2.23 lakh units, marking a remarkable 48% year-on-year growth and 7% sequential growth from September's 2.09 lakh units, as reported by CNBC TV18. Hero MotoCorp's electric two-wheeler sales surged 81% to 29,936 units, significantly boosting the company's market share to 13% from 11% a year earlier. The company holds a 32.8% stake in Ather Energy, and combined with Ather's sales of 31,796 units, the two companies captured a combined 28% market share in the electric two-wheeler segment. Market leader TVS delivered 60,429 units and became the first Indian e-2W brand to deliver over 60,000 e-scooters in a single month, while Ather crossed the 30,000 units mark for the third time this year. Ather Energy itself turned profitable in Q2 FY27 with net profit of ₹1.26 crore compared to a loss of ₹154 crore last year, with revenues surging 63% YoY to ₹1,464 crore.
Despite robust sales growth, two-wheeler manufacturers are facing significant margin pressures due to elevated raw material costs. Bajaj Auto posted strong Q2 results with 35% YoY rise in net profits to ₹3,353 crore and 60% surge in consolidated revenues, but EBITDA margins contracted by 250 basis points to 19.7% from 22.2% due to material cost overhang. Similarly, Hero MotoCorp's standalone net profit surged 5% to ₹1,456 crore for Q2 with revenues rising 21% YoY to ₹14,687 crore, but EBITDA margins contracted to 13.39% from earlier 15.03% levels. TVS Motor Co. reported 52% profit growth to ₹1,377 crore driven by high sales volumes, including electric vehicles, while Ather Energy achieved profitability with 0.80% EBITDA margins. Analysts from Antique Stock Broking note that while mix tailwinds from EV, scooters and premium segments are improving, core margin recovery is expected to be back-ended, with the sustainability of discretionary cost reductions remaining a key concern.
On Friday (October 30), shares of Hero MotoCorp Ltd ended at ₹5,152.40, up by ₹45.40, or 0.89%, on the BSE, as reported by CNBC TV18. Retail momentum also remained healthy, with registrations through the VAHAN portal reaching 5,89,665 units as of November 1, excluding Telangana. The strong market performance reflects growing consumer acceptance of electric vehicles and Hero MotoCorp's successful strategy in both traditional and emerging mobility segments. However, analysts warn that input cost inflation has been sticky for three consecutive quarters, and recent product price hikes only partially cover cost increases. Bajaj Auto shares are trading at ₹10,339 with 2.9% monthly returns, while TVS Motor Co. trades at ₹4,213 with 4.7% monthly gains. The upcoming Q3 margins will remain challenging for Indian two-wheeler automakers until rising raw material costs and volatile foreign currency rates ease in the global market.
