Best ⅔ Wheeler Company Stocks to Invest in Jan, 2026

What are ⅔ Wheelers Company Stocks?

The ⅔ Wheelers stocks encompass companies that manufacture motorcycles, scooters, and auto-rickshaws, catering to India’s vast mobility needs. The performance of these stocks is influenced by factors like consumer demand, fuel prices, and regulatory policies. India’s ⅔ wheeler market witnessed a 17% year-on-year growth, with domestic sales reaching 15.86 million units in FY 2023, recovering from 13.57 million units in FY 2022.

The ⅔ Wheelers sector has shown resilience and adaptability, with several key players demonstrating strong performance. TVS Motor Company secured the third spot among best-selling two-wheeler manufacturers in August 2023, with sales of 224,907 units, achieving a market share of 17.93%, up from 16.48% in the same period last year.

Bajaj Auto reported sales of 141,990 units in July 2023, experiencing a 13.6% year-on-year decline, reflecting challenges in domestic demand. These developments highlight the sector’s dynamic nature, where evolving consumer preferences, economic conditions, and government policies continue to shape market trends.

Why You Should Invest in ⅔ Wheeler Company Stocks?

You should Invest in ⅔ Wheeler Company Stocks for 3 main reasons. The reasons are Growing Domestic Market, EV Growth and Export Potential. 

• Growing Domestic Market: India is the world’s largest market for two-wheelers, with over 15 million units sold annually. Rising disposable income, urbanization, and increasing penetration in rural areas are fueling demand. Companies like Hero MotoCorp and Bajaj Auto have consistently maintained strong sales due to their wide distribution network and affordability. Domestic sales of two-wheelers grew 11.9% YoY in 2023, reflecting strong consumer demand.
• EV Growth: The Indian EV market is expected to reach $206 billion by 2030, with two- and three-wheelers leading adoption. Government incentives like the FAME II subsidy and state-level EV policies are accelerating growth. Companies such as Ola Electric, Ather Energy, and TVS Motors are expanding their EV portfolios, with TVS’s iQube sales growing fivefold in FY23. With rising fuel prices and increased environmental concerns, the EV transition is a significant long-term growth driver.
• Export Potential: Indian manufacturers are expanding their global presence, benefiting from cost competitiveness and high-quality production. Bajaj Auto, for instance, exports over 40% of its total production to markets in Latin America, Africa, and Southeast Asia. In FY23, India’s ⅔ wheeler exports crossed ₹50,000 crore, positioning the country as a key global player. As demand for affordable personal mobility rises in developing nations, Indian companies stand to gain significantly.

With a growing domestic market, a rapid EV transition, and strong global demand, India’s two- and three-wheeler sector presents promising investment opportunities. As leading companies expand into new markets and invest in innovation, this segment remains a crucial part of India’s economic growth.

What is the Future of ⅔ Wheelers Company Stocks?

The future of Indian ⅔ wheeler company stocks looks promising, driven by strong market growth, supportive government policies, and a shift toward electric mobility. According to TechSci Research, The Indian two-wheeler market which is valued at USD 18.24 billion in 2024, is expected to grow at a CAGR of 10.50%, reaching USD 33.20 billion by 2030 .

Rising urbanization, increasing disposable incomes, and affordable transportation demand are fueling this expansion. The segment is also witnessing a rapid transition to electric vehicles (EVs), with the government introducing the Electric Mobility Promotion Scheme (EMPS) 2024, allocating ₹5 billion to accelerate EV adoption.

Market leaders like Bajaj Auto and TVS Motor are benefiting from both domestic and export demand. In 2023, total two-wheeler sales in India rose to 16.99 million units from 15.86 million in 2022, highlighting strong consumer demand. Bajaj Auto expects a 20% growth in exports, particularly from Latin America and Southeast Asia, reflecting strong international market potential. 

What Factors Affect ⅔ Wheelers Company Stock Prices?

⅔ Wheeler Company Stock Prices are affected by 4 main factors. The factors are Economic Cycles, Regulatory Policies, Technological Advancements and Competition. 

• Economic Cycles: Demand for two- and three-wheelers is closely tied to the overall economic environment. During economic downturns, consumers may delay purchasing new vehicles, leading to reduced sales and potential declines in stock prices for manufacturers. Conversely, during periods of economic growth, increased consumer confidence and spending can boost vehicle sales, positively impacting stock valuations.
• Regulatory Policies: Government regulations, such as emission standards and safety requirements, can significantly affect production costs and market dynamics. The implementation of the Bharat Stage VI (BS-VI) emission norms in 2020 required manufacturers to upgrade technology, leading to increased production costs. Companies that adapt efficiently to these regulations may maintain or enhance their market position, while those that struggle could see negative impacts on their stock prices.
• Technological Advancements: The shift towards electric vehicles (EVs) presents both challenges and opportunities for traditional two- and three-wheeler manufacturers. Companies investing in EV technology may capture new market segments and improve their stock performance. Bajaj Auto’s introduction of the electric Chetak scooter has been well-received, contributing to a positive outlook for the company’s stock.
• Competition: The two- and three-wheeler market in India is highly competitive, with numerous players striving for market share. Intense competition can pressure profit margins, especially if companies engage in price wars or fail to differentiate their products. Eicher Motors faced stock declines due to concerns over its aggressive growth strategy impacting profitability.

Despite these challenges, the Indian ⅔ Wheeler sector shows promise, driven by factors like urbanization and a growing middle class. Investors should consider these dynamics when evaluating potential investments in ⅔ wheeler industry.

What are the Advantages of Investing in ⅔ Wheelers Company Stocks?

Investing in ⅔ Wheelers Company Stocks is advantageous for 4 main reasons. The reasons are Economic Growth, Government Initiatives, Diversification Benefits and Notable Companies.

• Economic Growth: India’s expanding economy has led to increased urbanization and rising disposable incomes, boosting demand for personal transportation. ⅔ Wheelers offer affordable mobility solutions, making them popular choices among the growing middle class. This surge in demand benefits manufacturers, leading to potential stock appreciation.
• Government Initiatives: Policies such as the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) scheme provide incentives for electric ⅔ Wheelers, reducing costs for consumers and stimulating market growth. The government’s target to achieve 80% electric two- and three-wheeler adoption in the next seven years underscores its commitment to this sector.
• Diversification Benefits: The ⅔ Wheeler sector includes a variety of companies, from traditional manufacturers to emerging electric vehicle startups. This diversity offers investors opportunities to diversify their portfolios within the automotive industry, potentially mitigating risks associated with investing in a single company or segment. 
• Notable Companies: Bajaj Auto, a leading player in this sector, reported a 3.3% increase in profits for the October to December quarter, reaching ₹21.09 billion. The company anticipates a 20% growth in exports, driven by demand in Latin America and Southeast Asia. Bajaj’s electric scooter, ‘Chetak,’ has contributed positively to its profit margins, reflecting the company’s adaptability to market trends.

In FY 2023, 2-wheeler sales grew by 17% YoY, reaching 15.86 million units, driven by rural recovery and premium bike demand. The EV segment saw a 40% surge, with Ola Electric and TVS iQube leading the charge. Meanwhile, 3-wheeler sales surged 87% YoY, with electric models making up 52% of total sales. 

What are the Risks of Investing in ⅔ Wheelers Company Stocks?

Investing in ⅔ Wheelers Company Stocks is risky for 4 main reasons. The reasons are Regulatory Risks, Rising Operational Costs, Market Demand Fluctuations and Competition from New Entrants.

• Regulatory Risks: The Indian government has been promoting electric vehicles (EVs) to reduce pollution, leading to stricter emission norms for traditional internal combustion engine (ICE) vehicles. The implementation of Bharat Stage VI (BS-VI) emission standards in 2020 increased compliance costs for manufacturers like Hero MotoCorp and Bajaj Auto, impacting their profit margins.
• Rising Operational Costs: Fluctuations in raw material prices, such as steel and aluminium, can significantly affect production costs. In 2021, rising commodity prices led to increased input costs for two-wheeler manufacturers, prompting companies like TVS Motor Company to raise vehicle prices, which in turn affected sales volumes.
• Market Demand Fluctuations: Economic downturns or reduced consumer purchasing power can lead to decreased demand for two- and three-wheelers. During the COVID-19 pandemic in 2020, the Indian two-wheeler market experienced a significant decline in sales due to lockdowns and economic uncertainty, affecting the revenues of major players in the ⅔ wheeler industry.
• Competition from New Entrants: The rise of EV startups presents competition to traditional two- and three-wheeler manufacturers. Companies like Ola Electric are entering the market with innovative electric scooters, challenging established players to adapt to changing consumer preferences and technological advancements.

Despite strong growth prospects, the two- and three-wheeler sector remains vulnerable to economic downturns, policy shifts, and rising input costs. In FY23, a 20% surge in raw material prices impacted profit margins for leading manufacturers, while stricter emission norms added compliance costs.

When ⅔ Wheelers Company Stock Prices Go Up?

⅔ Wheelers Company Stock Prices go up mainly due to 3 reasons. The reasons are Rural Demand, EV Transition and Ride-Sharing.

• Rural Demand: A significant portion of India’s two-wheeler demand comes from rural areas, where motorcycles are essential for daily commuting. A good monsoon season and higher farm incomes drive up sales, as farmers and rural households increase spending on vehicles. The Indian government’s higher Minimum Support Prices (MSP) for crops and rural infrastructure investments further boost demand. Hero MotoCorp reported a 15% growth in rural sales in FY2023, benefiting from an above-average monsoon and increased government support for farmers. 
• EV Transition: With government incentives, rising fuel prices, and lower running costs, electric two-wheelers are becoming more popular. The FAME II subsidy and state-level EV policies are accelerating the adoption of electric scooters and motorcycles. As urban consumers look for cost-effective, eco-friendly options, leading players in the EV segment continue to gain market share. Ola Electric became India’s largest EV two-wheeler seller in 2023, crossing 30,000 units per month, while TVS iQube and Ather Energy also saw strong growth. 
• Ride-sharing: The growth of food delivery and e-commerce has driven demand for two-wheelers, especially scooters and electric bikes. Many delivery partners prefer cost-efficient models with low maintenance costs, boosting fleet purchases. The rise of ride-sharing platforms like Rapido has increased demand for two-wheelers in urban areas. Bajaj Auto’s three-wheeler sales surged 40% in FY2024, driven by demand from ride-sharing and urban mobility solutions. 

In FY 2023, two-wheeler sales grew by 13%, with electric two-wheeler sales surging 160% YoY. As India moves toward cleaner, cost-effective transportation, this sector remains a strong investment opportunity.

When ⅔ Wheelers Company Stock Prices Go Down?

⅔ Wheeler Company Stock Prices go down mainly due to 3 reasons. The reasons are Rural vs Urban Demand, Fuel Prices and Financing. 

• Rural vs. Urban Demand: Two-wheelers have a strong rural demand due to their affordability and utility in areas with poor public transport. In contrast, urban sales are influenced by lifestyle preferences and last-mile delivery growth (e-commerce, food delivery). Hero MotoCorp, India’s largest two-wheeler manufacturer, derives over 50% of its sales from rural India, making it highly sensitive to rural income and monsoon patterns.
• Fuel Prices: Rising petrol prices impact consumer preferences, pushing demand towards electric two-wheelers (E2Ws). Ola Electric and Ather Energy have seen rapid adoption, while traditional players like Bajaj Auto and TVS Motor are expanding their EV portfolios. The Indian two-wheeler EV market grew by 40% YoY in 2023, with TVS iQube reporting a 500% increase in sales.
• Financing: Two-wheeler sales rely heavily on NBFC and bank financing, with nearly 40% of sales being credit-driven. Higher interest rates (RBI’s repo rate hikes) make EMIs expensive, reducing demand. For example, in 2022, Bajaj Finance saw a slowdown in two-wheeler loans when borrowing costs increased.

The ⅔ Wheeler sector in India is significantly influenced by these factors. As of FY 2023-24, the ⅔ Wheelers industry produced a total of 28.4 million vehicles, including ⅔ Wheelers, marking an increase from 25.9 million vehicles in FY 2022-23.

How Does the EV Transition Affect Traditional 2/3 Wheeler Stocks?

The transition to Electric Vehicles (EVs) is reshaping India’s ⅔ wheeler market, compelling traditional manufacturers to adapt. The Indian government aims for 80% of new ⅔ wheeler sales to be electric by 2030, reflecting a significant policy shift toward sustainable mobility. ​

In response, established companies are investing in EV technology to maintain market relevance. Royal Enfield is developing its first electric motorcycle, anticipating a launch in the next financial year starting April 2025 and Hero MotoCorp plans to introduce electric scooters in the UK and Europe by mid-2025. These strategic moves indicate a commitment to evolving with the industry’s electrification trend

Are 2/3 Wheeler Export Trends Driving Stock Prices Higher?

Rising ⅔ wheeler exports are positively influencing stock prices of Indian manufacturers. From April 2024 to March 2025, Bajaj Auto recorded a 7% growth in total sales, driven by a 13% increase in two-wheeler exports and a 19% rise in commercial vehicle exports.

In March 2025 alone, the company exported 16,276 commercial vehicles, marking an 11% year-on-year growth. This export momentum has helped offset domestic market stagnation, contributing to overall revenue growth.​

The broader industry mirrors this trend. Between April 2024 and February 2025, India’s two-wheeler exports surged by 22% year-on-year, reaching 3.83 million units . This robust international demand, especially from markets like Latin America and Southeast Asia, underscores the global appeal of Indian-made vehicles. Consequently, Investors are viewing export performance as a key driver of profitability and stock valuation in the two- and three-wheeler segment.