125cc motorcycle segment has seen its ups and downs but clearly it has now settled down and witnessing growth. Let’s see how have things come up in last five years…
Couple of years back I did this story of 125cc motorcycle sales in FY21 and it was probably the first time Honda overtook Hero as the largest seller in this segment. You can read it out here. With another financial year (2023) gone let us quickly see how have things panned up in the last five years..
125cc Motorcycle Sales FY23 vs Previous Years
| Year | Sales | Growth |
| FY19 | 19,36,893 | – |
| FY20 | 23,68,653 | 4,31,760 (22%) |
| FY21 | 24,22,763 | 54,110 (2%) |
| FY22 | 22,02,375 | -2,20,388 (-9%) |
| FY23 | 26,86,561 | 4,84,186 (22%) |
Quick Analysis
- As of today, there are four major players fighting for a pie in this space – Bajaj, Hero, Honda and TVS.
- In FY22, TVS re-entered this segment with its Raider which is doing great business for the Chennai-based maker. This has clearly added to the overall sales tally.
- With the exception of FY22, sales in this segment have only shown a growth.
- FY23 has been the best year in the last five year term.
- In sheer numbers, this segment grew the most in FY23. It added over 4.80 Lakh units as compared to its previous year.
- As compared to FY19 numbers, sales have grown by almost 7.50 Lakh units or about 39 percent.
125cc Segment Resurrection
With the 110cc motorcycles gaining popularity on one side and makers trying out various other alternates like 135cc, etc, sales of the 125cc motorcycles were affected big time. With the shrinking interest, few makers decided to completely exit this segment. This included TVS, Yamaha and even Suzuki. While TVS has returned, Yamaha and Suzuki do not have any product here yet!
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However, since 2018-19 onwards, there have been big and frequent changes on the regulation front that has caused big price increments and as a result the sub-segments have expanded. There was a very thin price band for the 125cc motorcycles earlier but we, now, have a large price window where 125cc motorcycles – of various different genres – play. This has allowed for a breathing space for makers and we now have commuters like Shine, Glamour, etc on one hand and sports-oriented Pulsar NS125, 125 Duke on the other – all trying to lure customers in their own ways.
125cc Motorcycle Segment – Future
Honda will be upping its ante against Hero and the largest maker will definitely try to fight it out. With great response to its Raider, TVS will surely be preparing one or two motorcycles, possibly in the commuter space and then the unpredictable Bajaj may have some surprises for us as well (Pulsar 125 transition to P125 is pending already).
The swelling up of the overall segment, heated competition, etc may attract attention of some new makers and the oldies may also consider returning. It will be interesting times for sure…
There has been a big turnaround in this space that we will discuss in an article tomorrow when we will talk about individual sales. Stay tuned…
