The year saw record sales milestones, long-awaited brand revivals, major acquisitions and important policy changes. Here is a list of the important happenings in the two-wheeler industry in 2025:
Royal Enfield Hits a Historic Million
Royal Enfield surpassed a historic 1 million annual sales milestone for the financial year ending March 31, 2025, the highest-ever in its history. The company posted sales of 1.09 Million units, up 11% from FY 2023-24. Exports over the year also climbed to an all-time high of 1,07,143.
Norton Comes Back To Life
Norton Motorcycles, which was acquired by TVS in 2020, will debut its all-new range of bikes across global markets, including Europe, the US, Asia and India in the first half of this year. Our market will play a significant role and the company plans to retail the full line-up here as well. The models unveiled so far include the Manx, Manx R, Atlas and Atlas GT, and a new 450 single cylinder platform is expected to be showcased later in 2026.
GST on 350cc-Plus Motorcycles Hiked
The Goods and Services Tax (GST) Council approved an increase in levies on high-capacity motorcycles, raising the tax rate on two-wheelers above 350cc engine capacity to 40% from 28%. The new rates came into effect on September 22, 2025.
Bajaj Acquires KTM
A big moment in global motorcycling this year was Bajaj Auto taking full control of KTM. After months of crippling financial stress at the Austrian brand, Bajaj stepped in and completed the acquisition of KTM’s parent company with an investment of 800 million euros. The first steps post ownership change were to stabilise operations and restart production in Europe. So far there have been no sweeping changes in the way KTM operates, but that is likely to change over time.
Ola’s Fall From The Top
Over the course of 2025 Ola Electric slipped from the top position in monthly sales to fifth spot in recent months, now behind TVS, Bajaj, Ather and Vida. Multiple factors have contributed to this slide, with mounting customer complaints being one of the bigger ones. The company is pursuing multiple options, including a new Hyperservice campaign as well as its own rare-earth free motors and in-house 4680 Bharat Cell. 2026 will be a vital year for the Bengaluru based start-up and the next few months will reveal if these measures can help it to reverse course.
