India’s Electric Two-Wheeler Market grows 38% YoY in Q1 2026; Connected E2W Adoption grows to 90%, says CMR

India’s Electric Two-Wheeler Market grows 38% YoY in Q1 2026; Connected E2W Adoption grows to 90%, says CMR

Picture of Prabhu Ram, Vice President – Industry Research Group (IIG)

Prabhu Ram, Vice President – Industry Research Group (IIG)

  • Hero MotoCorp led the overall two-wheeler market with 27% share, followed closely by Honda at 26%
  • TVS retained leadership in the Electric Two-Wheeler (E2W) segment, ahead of Bajaj Auto and Ather Energy
  • Two-wheeler exports grew 21% YoY in Q1 2026

New Delhi/Gurugram, 22 May 2026: India’s Electric Two-Wheeler (E2W) market continued its strong growth momentum in Q1 2026, registering a robust 38% YoY increase, according to the latest CMR India Two-Wheeler Market Review for Q1 2026 by CyberMedia Research (CMR). The overall two-wheeler market also expanded 26% YoY, driven by resilient consumer demand, accelerating EV adoption, and rising preference for connected mobility experiences.

Hero MotoCorp maintained its leadership in the overall 2W market with 27% share, supported by the continued dominance of the Splendor portfolio, which contributed 61% of the company’s total volumes.

 “Q1 2026 marks a defining shift in India’s two-wheeler market, where mobility is increasingly becoming smarter, connected, and value-driven. Motorcycles continued to dominate with a 58% market share and steady 21% YoY growth, while scooters significantly outpaced the broader market with a strong 34% YoY increase, fuelled by rising urban mobility demand. While the entry-level segment (ex-showroom price below INR 90,000) remains the market backbone with 65% share, momentum is steadily shifting toward value-plus models priced between INR 90,000 and INR 1.5 lakh, whose share expanded from 20% in Q1 2025 to 27% this quarter,” said Shipra Sinha, Senior Analyst – Smart Mobility Practice, CMR.

The strong market growth in Q1 2026 was driven by a combination of favorable macroeconomic and industry factors, including rising replacement demand, improving disposable incomes, expanding personal mobility needs across urban and semi-urban markets, and continued policy support for EV adoption through initiatives such as the PM E-Drive scheme. Festive buying during periods such as Gudi Padwa and Ugadi, along with fiscal year-end purchases, also contributed to stronger retail demand. OEMs further accelerated growth through wider dealer expansion and increasingly feature-rich product portfolios.

Key Technology Trends

  • The connected E2W segment grew 49% YoY, with 90% of electric models now equipped with connected technologies such as navigation, remote diagnostics, theft tracking, geofencing, and app-based controls. Growing smartphone penetration, digital lifestyles, and increasing demand for convenience and safety are accelerating this transition.
  • Digital cluster adoption across the broader 2W market rose sharply to 64%, compared to 36% in Q1 2025, as OEMs increasingly integrate feature-rich digital displays even within mid-range models.
  • Additionally, nearly 30% of E2Ws equipped with TFT displays now feature touchscreen interfaces, with 54% of these offering 7-inch panels, signaling rising premiumization and stronger focus on user-centric digital interfaces.

Key Market Trends

  • TVS Motor Company emerged as the leader in India’s E2W market in Q1 2026 with a 29% market share, registering a notable 67% YoY growth driven by continued traction for the iQube portfolio.
  • Bajaj Auto followed with a 21% share, supported by strong urban demand for the Chetak.
  • Ather Energy captured 20% market share, led by the strong performance of the Rizta model, which contributed 77% of its volumes.
  • Ampere Electric also recorded 39% YoY growth, with the Magnus portfolio contributing over half of its sales.
  • Meanwhile, Ola Electric witnessed a sharp 62% YoY decline amid operational disruptions, supply chain and production challenges, intensifying competitive pressures, and growing consumer concerns around after-sales service.

Future Market Outlook

CMR expects India’s E2W market to sustain its growth momentum through CY2026 and beyond, with electric two-wheelers projected to capture 10–12% share of the overall two-wheeler market by the end of 2026.

“The Indian two-wheeler industry is rapidly transitioning from a pure volume-driven commuter market into a technology-led, digital-first mobility ecosystem. The next phase of competition will be shaped by value-plus premiumization, software-led differentiation, and seamless connected experiences. OEMs that successfully balance ICE reliability with scalable electric mobility strategies, while strengthening localized supply chains and data-driven ownership ecosystems, will be best positioned to capture the evolving aspirations of Indian consumers,” said Amit Sharma, Senior Analyst – Smart Mobility Practice, CMR.