India: New Motorcycle Registrations to Reach a New Record of 20 Million Units in 2025

In India, new motorcycle registrations in 2025 are expected to exceed 20 million units for the first time, surpassing the previous record of 19.57 million units set in 2018. This growth is driven by stimulated demand following the reduction in vehicle prices under the GST reform introduced on September 22. Strong demand is anticipated to continue into 2026, with registrations projected to reach around 21 million units, marking a record high for the second consecutive year.To leverage its massive domestic market as an engine for economic growth, the Indian government introduced a new GST (Goods and Services Tax) on September 22, 2025—just ahead of the Diwali festive season, when consumer spending is at its peak. The new GST system simplified tax categories and reduced rates for many items, with the exception of certain luxury and sin goods. According to estimates by the State Bank of India, while GST tax revenue may decrease, the reform is expected to expand annual consumption by 19.8 trillion INR and could potentially boost GDP by 0.6 percentage points. Thus, the GST reform is expected to have a significant positive impact on the overall economy.