125cc Bikes See Big Growth in 2025 Hero, TVS & Bajaj Compete Hard
Hero MotoCorp and TVS Motor are the kings of village roads in India. Their low-cost, fuel-efficient motorcycles are selling fast, especially in rural areas. Hero has more than 90% market share in the 100cc segment, and has made a strong entry in the 125cc category with its bike Xtreme 125R. The company has sold over 3 lakh units of this model, growing its share by 2.5% in this segment.
Entry-Level Bikes Growing Fast
In financial year 2025, motorcycles in the 110cc to 125cc segment have seen a strong rise in sales. This segment grew by 12.7%, taking total sales to 36 lakh units.
Experts say this growth is because of:
- Better consumer confidence in rural areas
- Cheaper loans due to RBI’s reduced interest rates
Only 5.1% Growth in Overall Motorcycle Market
Even though the full motorcycle market grew only 5.1%, entry-level bikes performed better. In FY 2023-24, this segment made up 27.4% of total bike sales. That number has now increased to 29.4%, showing people in India still prefer small, budget-friendly bikes.
Cheaper Loans = Lower EMIs
According to FADA President C.S. Vigneshwar, rural areas will see more demand due to good monsoon expectations and low-interest rates. Entry-level bike buyers are very sensitive to loan interest. Lower rates mean smaller EMIs, which helps increase demand.
Today, 18% of all two-wheeler sales come from this segment. Also, 29% of bikes sold are below 125cc. However, as people start liking more powerful bikes, this share may slowly go down.
This Segment Still Has Future
Nikhil Dhaka, Vice President at Primus Partners, says entry-level bikes will still be important. Improvement in rural markets and new model launches will keep this segment alive, even if growth is slower than other categories.
Hero Leads the Way, TVS & Bajaj Close Behind
Hero MotoCorp is leading with over 90% market share in the 100cc bikes. With the success of Xtreme 125R, it has also entered the 125cc segment strongly. The company plans to grow further by:
- Product upgrades
- Smart marketing
- Digital finance options
TVS is also gaining attention with its Raider 125 bike. CEO K.N. Radhakrishnan says this bike is doing well in both India and global markets.
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Bajaj Auto is preparing a new low-cost bike for this segment. Bajaj’s market share in the 125cc segment was:
- 21% in 2023
- 26% in 2024
- Now dropped to 24% in 2025
But the company is planning to bounce back and focus on growth again.
Summary:
Hero and TVS bikes are very popular in rural India. People are buying more entry-level bikes due to cheaper loans and better roads. Hero is the market leader, but TVS and Bajaj are not far behind. The 125cc segment is becoming a key part of the bike market in India.
Disclaimer: This article is for general information only. Please verify final purchase decisions with official brand sources or dealers.
