Industry Analysis
Two-Wheelers — where ₹69K bikes build ₹7Cr businesses
2 crore bikes sold every year. 6,000+ Hero dealerships. 2,100+ Royal Enfield showrooms. The vehicle margin is 3-7% — the real money is in the workshop behind the showroom. Data from SIAM, FADA, and company annual reports.
2.06 Cr
Domestic 2W sales FY25 · SIAM · Scooters up 37%, bikes up 20%
The same industry, two completely different businesses
Commuter
Hero · Honda · TVS
ASP per bike₹69-85K
Units per dealer / year900+
Revenue per dealer₹6.8-8.7 Cr
Vehicle margin3-5%
Low margin, massive volume. You sell 75 bikes a month at ₹2-3K profit each. The bike sale gets them in the door — service and parts keep them coming back for years.
Premium
Royal Enfield · Yamaha
ASP per bike₹1.5-2.1L
Units per dealer / year430
Revenue per dealer₹8.95 Cr
Vehicle margin5-12%
Higher margin per unit, half the volume. An RE Classic 350 at ₹2L earns ₹10-24K per bike. Plus the accessories culture — helmets, jackets, guards. Fewer bikes, more profit per transaction.
Where the money actually is — not vehicle sales
A two-wheeler dealer's P&L looks nothing like what people expect. The bike sale is just the entry ticket.
← WIDTH = SHARE OF REVENUENUMBER = DEALER PROFIT MARGIN →
Profit Margin ↓
3-7%
Vehicle Sales
65% of dealership revenue
THE ENTRY TICKET
Margin ↓
40-55%
Workshop & Service
18% of revenue
MARGIN ↓
20-30%
Spare Parts
12% of rev
Service is only 18% of revenue but 40-55% profit margin — this is where the real money is. The workshop behind the showroom funds the business.
Three ways EVs enter the dealership.
Not all EV dealers are equal — the model determines your economics.
Bolt-On
Bajaj Chetak · TVS iQube · Hero Vida
EV sold through existing ICE dealership. Zero extra investment. Chetak FY25: 2.3L units (+116% YoY). iQube: 2.79L units (+44%). The dealer already has the showroom — EVs are a new SKU, not a new business.
₹0 extra invest|3-6% margin|Same dealer, new product
Purpose
Ather Energy
Purpose-built experience centres. 25-30% dealer profit per DRHP filing — the highest margin in the entire 2W industry. 500+ centres, targeting 700 by FY26. IPO at ₹321/share (Apr 2025). Premium positioning = premium dealer economics.
₹50L invest|25-30% margin (DRHP)|S1 source
D2C
Ola Electric
No dealer model. All 935 experience centres are company-owned. DRHP explicitly states D2C as competitive advantage — no dealer margin layer means lower consumer price. 414 service centres also company-operated. You cannot open an Ola dealership.
Not available|Company-owned only|DRHP/SEBI source
Who sells what — January 2026
Source: FADA retail registration data · January 2026 · ~19,000 unit gap between Hero and Honda
What 1,800 dealers actually think — FADA DSS 2025
852
/ 1000
Royal Enfield
+140 pts YoY
817
/ 1000
Hero MotoCorp
+140 pts YoY
What dealers praise: Product range, training quality, warranty claim fairness, frequent model updates.
What dealers complain about: Vehicle margins, unsold inventory buyback policy, training cost sharing, resistance to dealer feedback.
Source: FADA Dealer Satisfaction Study 2025 · 1,800+ dealer principals · ~5,000 outlets · PremonAsia methodology
The investment comparison
| Brand |
Investment |
Space |
ASP |
Rev/Dealer |
FADA |
| Hero MotoCorp | ₹50L-1.5Cr | 3,000+ | ₹69K | ₹6.8Cr | 817 |
| Royal Enfield | ₹50L-1Cr | 2,000-4,000 | ₹2.08L | ₹8.95Cr | 852 |
| Honda (HMSI) | ₹1.5-3Cr | 4,000+ | ₹85K | — | 747 |
| TVS Motor | ₹30-50L | 2,000+ | ₹73K | ₹8.7Cr | 632 |
| Bajaj Auto | ₹25-50L | 2,000+ | ₹87K | ~₹6.6Cr | — |
| Yamaha | ₹30-50L | 2,500+ | ₹1.2L | — | — |
| Ather Energy | ₹50L | — | ₹1.3L | — | — |
Rev/Dealer = FY25 company revenue ÷ dealer count. ASP from filings. FADA = Dealer Satisfaction Study 2025 (/1000)
What the filings actually reveal
₹10K
Hero's EBITDA per unit crossed ₹10,000
From Hero MotoCorp's FY25 results. At 917 units per dealer per year, that's ₹92L in OEM EBITDA generated per dealer. The dealer's own margin is a fraction of this — the OEM keeps most of it.
3x
RE's ASP is 3x a commuter — same dealer revenue
Royal Enfield sells 430 bikes/year per dealer at ₹2.08L each = ₹8.95Cr revenue. Hero sells 917 bikes at ₹69K = ₹6.8Cr. Half the volume, 30% more revenue.
25%
Ather dealers make more margin than any ICE brand
Per Ather's DRHP filed with SEBI: 25-30% profit on vehicle sales. Compare that to 3-7% for petrol bikes. Fewer service visits but higher upfront margin — the EV model inverts traditional dealer economics.
0%
Ola has zero dealers — and brags about it
Ola Electric's DRHP highlights the absence of a dealer margin layer as a competitive advantage. All 935 centres are company-owned. If Ola succeeds, it proves dealers aren't needed.
629
Hero and Honda are separated by 629 bikes. Total.
January 2026: Hero 5,20,208 units. Honda 5,19,579. The closest 2W race in Indian automotive history. Your dealer choice here is a bet on scooters vs motorcycles.
Data: SIAM FY25, FADA Dealer Satisfaction Study 2025 (PremonAsia),
Hero MotoCorp AR FY25, Eicher Motors AR FY25, Bajaj Auto AR FY25, TVS Motor AR FY25,
Ather Energy DRHP (SEBI/BSE), Ola Electric DRHP (SEBI),
Rushlane, DriveSpark, Autocar Professional, 91Wheels.
If any data is incorrect, write to
dataczar@franticc.com