HMSI aims for a larger market pie, bets on new launches and GST cut

Honda Motorcycle and Scooter India (HMSI) is aiming to increase its market share in the Indian two-wheeler market, and in this ambition, the company is betting big on a series of new product launches, which include both motorcycles and scooters. Honda has introduced two new motorcycles in the popular 100 cc and 125 cc segments in the Indian market, Shine 100 DX and CB125 Hornet, respectively.

According to the data revealed by the Federation of Automobile Dealers Association (FADA), retail sales of two-wheelers in India have grown by only 2.37 per cent between April-July 2025 over the same period a year ago. SIAM data, which reports wholesale numbers, shows domestic sales of two-wheelers during the April-July 2025 period were down by 2.9 per cent over the year-ago period. The numbers are expected to shoot up significantly during the upcoming festive season, on the back of the positive consumer sentiment and potential GST rate cut, which the government has hinted.

HMSI, which holds a market share of 28 per cent in this space, is expecting to see a major boost in its sales on the back of this expectation. Also, with the launch of the new products, including the recently introduced 100 cc and 125 cc motorcycles, the Japanese two-wheeler major is aiming to grab a larger chunk of the pie.

Speaking about the ambition, HMSI Director (sales and marketing) Yogesh Mathur said that the company is a leading player in the two-wheeler segment in India with 28 per cent market share. "We aim to raise the market share with new launches in the coming days," he added. Mathur said that in July and August this year, HMSI emerged as a market leader in the motorcycle and scooter segments in the country, and the company wants to sustain this trend in the future. "Honda's subsidiaries in Indonesia, Thailand and Vietnam control 70 per cent to 80 per cent market share in the two-wheeler segment in these countries. We believe there is enough scope for HMSI to grow in India," he further said.

HMSI currently has motorcycles and scooters on sale in India across different engine displacement categories. It also entered the electric scooter segment in India with the launch of two models, Activa e: and QC1. Besides selling its products in India, the company exports made-in-India two-wheelers to 62 countries across the world, including markets in Southeast Asia, South America, Central America and Europe. The company sees 10 per cent of its total revenue coming from exports.

HMSI bets big on GST rate cut

The Indian government is currently working on restructured GST slabs. Under the proposed GST 2.0 regime, the automobiles, including the passenger vehicles and two-wheelers, are expected to witness a tax rate reduction, especially for the smaller cars and smaller engine-powered motorcycles and scooters, respectively. HMSI is betting big on this potential rate revision.

Under the current GST structure, two-wheelers are taxed at a 28 per cent rate. The government has proposed retaining just the five per cent and 18 per cent slabs and doing away with the 12 per cent and 28 per cent slabs in the GST 2.0 regime. The sub-350 cc two-wheelers are expected to be taxed at 18 per cent in the new regime, which would reduce the tax burden on a large number of two-wheeler consumers.

HMSI believes this move would be a game-changer, as there are many consumers who are staying away from purchasing two-wheelers because of the affordability issue.

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