TVS Motor, Royal Enfield record sales in August amid GST uncertainty
TVS Motor Company and Royal Enfield, both headquartered in Chennai, reported exceptional sales performances in August 2025 even as broader two-wheeler industry growth slowed due to buyer anticipation of a forthcoming GST rate reduction. While TVS entered the coveted half-million club, Royal Enfield sales grew by more than 50%.
TVS Motor for the first time crossed the five lakh unit milestone by recording monthly sales of 509,536 units in August 2025, a growth of 30% year-on-year. TVS’ total two-wheeler sales registered a growth of 30% to 490,788 units in August 2025 from 378,841 units in August 2024. Domestic two-wheeler registered growth of 28% to 368,862 units while exports grew by 36% to 121,926 units in August 2025.
The five lakh monthly volume feat is mostly achieved by Honda Motorcycle & Scooter India (HMSI) and Hero MotoCorp. HMSI reported flat annual growth in August 2025 as its total sales stood at 534,861 units. Hero MotoCorp’s total dispatches stood at 553,727 units in August 2025, up 8% compared to August 2024.
Eicher Motors’ Royal Enfield remained in the fast lane as sales grew by 55% to 114,002 motorcycles in August 2025. The company's domestic sales surged 57% year-on-year to 102,876 units last month and exports grew 39% to 11,126 motorcycles.
“Our performance in August reflects a positive momentum as we step into the festive season, which traditionally drives strong demand in the domestic market. With the 2025 Hunter 350 and Guerrilla 450 already generating excitement, our portfolio is well poised to meet rider aspirations,” said B. Govindarajan, Managing Director - Eicher Motors and Chief Executive Officer - Royal Enfield.
India’s two-wheeler industry is now bracing for changes in the goods and services tax (GST) regime. Currently, two-wheelers with engine capacities up to 350 cc are taxed at 28%, while those above 350 cc attract 28% GST plus a 3% compensation cess. Reports highlight that the GST Council in its meeting on September 3–4 may decide to reduce taxes on motorcycles with engine capacities up to 350cc to 18%, while bikes above 350cc may be pushed to the highest 40% slab.
Royal Enfield on Saturday called upon the government to consider a uniform GST rate for two-wheelers, including higher capacity bikes.
In a post on LinkedIn, Eicher Motors Executive Chairman Siddhartha Lal said that Indian brands already dominate the small-capacity segment worldwide, and through heavy investment, the industry is now making deep inroads into mid-capacity motorcycles."Lowering GST for less than 350cc will help broaden access, but raising GST for over 350cc would damage a segment vital to India's global edge," Lal stated. A differential rate would dramatically shrink the domestic over 350cc segment, and choke the investment needed for India to compete globally, he added.
Hero MotoCorp Pawan Munjal said on Monday that the lowering of GST on two-wheelers will serve as a crucial enabler, offering much-needed relief to first-time buyers, especially in rural and semi-urban areas, where it is the backbone of personal mobility.