India Two-Wheeler Market

India Two-Wheeler Market Overview:

The India two-wheeler market size reached 21.4 Million Units in 2023. Looking forward, IMARC Group expects the market to reach 86.4 Million Units by 2032, exhibiting a growth rate (CAGR) of 16.29% during 2024-2032. The growing spending power of the middle-classed, the rising need for practical commuting options due to fast urbanization, and increasing accessibility of affordable funding choices, represents some of the key factors impelling the market growth.

India Two-Wheeler Market Analysis:

• Major Market Drivers: The market is experiencing a robust growth due to growing number of middle-class individuals with higher spending ability.
• Key Market Trends: There is a noticeable shift towards electric two-wheelers, driven by government incentives and increasing consumer awareness about environmental issues.
• Geographical Trends: West and Central India dominates the market due to the presence of several major cities with dense populations, which requires private vehicles for commuting.
• Competitive Landscape: Some of the major market players in the India two-wheeler industry include Bajaj Auto Ltd., Hero MotoCorp Ltd., Honda Motorcycle & Scooter India Pvt. Ltd., Maruti Suzuki India Limited, TVS Motor Company, among many others.
• Challenges and Opportunities: Challenges include regulatory changes, such as stricter emission norms and safety standards, which require heavy investments in research and development (R&D). However, India two-wheeler market recent developments like electrification of the two-wheeler segment is projected to overcome these challenges.

India Two-Wheeler Market Trends/Drivers:

Rise in disposable incomes

The increasing purchasing power of the middle-classed population is one of the key factors strengthening the market growth. A heightened portion of the population is finding themselves in a position to afford personal vehicles as the economic conditions of the country improves. Two-wheelers are seen as a cost-effective and sensible option among the middle-class, who are majorly first-time vehicle owners. The initial cost of two-wheelers is generally low, and they also require less maintenance compared to four-wheelers, encouraging their adoption. With inflating income levels, middle-class individuals can afford more luxurious, feature-rich two-wheelers with improved safety features, increased fuel efficiency, and cutting-edge technology. The India Brand Equity Foundation (IBF) projects that by 2030–2031, there would be 715 million middle-class individuals or 47% of the total population, up from 432 million in 2020–2021.

Rapid Urbanization and Increasing Traffic Congestion

The challenges of urban commuting are increasing as more people move from rural to urban areas in search of better living conditions and employment. These challenges highlight the shortcomings of public transportation and the impracticality of four-wheelers in densely populated cities due to the growing problems with traffic congestion and parking space shortages. On the basis of the statistics provided by the GlobalData, in 2021, urbanization rate in India was 1.34%. In 2021, India's pace of urbanization rose by 1.5% year over year.

Two-wheelers provide a more practical and versatile option, making it simpler to navigate in congested areas and small places. In metropolitan settings where stop-and-go traffic is common, their increased fuel economy is an added advantage. The desire for two-wheelers is driven by their usefulness under these situations. As per the Industry POL & NG Consumption Report of 2022, the sales of two-wheelers increased 14.1% in March 2022 to 11.8 lacs from 10.4 lacs in February 2022. In addition, a lot of Indian cities are working to lower their carbon footprint owing to the emphasis on sustainability, and two-wheelers, especially the electric and hybrid varieties, are an ideal means to help achieve these environmental objectives. Government programs that assist the expansion of the industry include subsidies for electric two-wheelers and the construction of infrastructure for charging them. These measures increase the accessibility of eco-friendly solutions to the urban populace.

India Two-Wheeler Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India two-wheeler market, along with forecasts at the country and regional levels from 2024-2032. Our report has categorized the market based on type, technology, transmission, engine capacity, fuel type, end user, and distribution channel.

Breakup by Type:

• Scooters
• Mopeds
• Motorcycle
• Electric Two-Wheeler
   

Motorcycle accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes scooters, mopeds, motorcycle, and electric two-wheeler. According to the report, motorcycle represented the largest segment.

Motorcycles can be used for a variety of purposes, including long-distance riding, everyday commuting, and leisure riding. Motorcycles often have a lower initial purchase price than scooters or other two-wheeler variations in a budget-sensitive market like India. Many of Indian buyers, particularly those in the middle class and lower income categories, find this pricing compatible with their financial restrictions.

In addition, motorbikes are renowned for their strength and longevity, which is important given India's diverse topography and driving conditions. Fuel economy is another important benefit, and as gas costs rise, buyers are becoming more drawn to this aspect, which is contributing to the India two-wheeler market growth.

Breakup by Technology:

• ICE
• Electric
   

ICE holds the largest India two-wheeler market share

A detailed breakup and analysis of the market based on technology has also been provided in the report. This includes ICE and electric. According to the report, ICE accounted for the largest market share.

Internal combustion engine (ICE) two-wheelers are widely preferred by Indians due to their affordability and familiarity. Traditional ICE-powered two-wheelers are less expensive to produce and buy than their electric equivalents, which opens up access to a wider range of people, particularly in a price-sensitive market like India. Furthermore, there is a well-established infrastructure for fossil fuels like gasoline and diesel, which guarantees convenient access to fuel for (ICE) nationwide. While electric two-wheelers are gaining traction, the widespread adoption of charging infrastructure and cost parity with ICE vehicles remains a work in progress, contributing to the continued dominance of ICE-powered two-wheelers in India. Data from the Vahan site shows that sales of electric two-wheelers (e2w) were 910,930 in 2023–24 compared to 682,937 in 2022–23 in the country.

Breakup by Transmission:

• Manual
• Automatic
   

Manual represents the leading market segment

The report has provided a detailed breakup and analysis of the market based on the transmission. This includes manual and automatic. According to the report, manual represented the largest segment.

Manual transmission two-wheelers, including motorcycles and scooters are typically more affordable to manufacture and purchase compared to automatic variants. This affordability aligns well with the budget constraints of a significant portion of Indian consumers, making manual models the preferred choice for those seeking economical transportation solutions. Also, manual two-wheelers provide riders with a greater sense of control and engagement, which many automotive enthusiasts appreciate. While automatic transmissions offer convenience, the cost-conscious Indian market continues to favor manual transmission two-wheelers for their accessibility and riding experience. Furthermore, the fuel efficiency of manual transmissions is another major factor propelling the segment growth owing to rising fuel prices. Since manual two-wheelers often deliver better mileage compared to their automatic counterparts, they contribute to substantial cost savings over time, further bolstering their popularity.

Breakup by Engine Capacity:

• <100cc
• 100-125cc
• 126-180cc
• 181-250cc
• 251-500cc
• 501-800cc
• 801-1600cc
• >1600cc
   

100-125cc exhibits a clear dominance in the market

A detailed breakup and analysis of the market based on the engine capacity has also been provided in the report. This includes <100cc, 100-125cc, 126-180cc, 181-250cc, 251-500cc, 501-800cc, 801-1600cc, and >1600cc. According to the report, 100-125cc accounted for the largest market share.

Two wheelers in the range of 100-125cc strike a balance that resonates with a broad spectrum of Indian consumers, especially in the context of daily commuting. In a price-sensitive market like India, the 100-125cc segment offers relatively lower upfront costs, making them an appealing option for the middle-class population, who form a substantial portion of the market. Additionally, these motorcycles provide impressive fuel efficiency, which is a critical consideration in a country where fuel prices can be a significant portion of a household's budget. They are well-suited for city commutes, offering a hassle-free and economical mode of transportation. This segment also caters to first-time buyers, who often seek reliable and easy-to-handle vehicles. All these factors combined stimulate the growth of the 100-125cc segment, representing the perfect balance between cost-effectiveness and practicality.

Breakup by Fuel Type:

• Gasoline
• Petrol
• Diesel
• LPG/CNG
• Battery
   

Petrol is the largest segment in the market

The report has provided a detailed breakup and analysis of the market based on the fuel type. This includes gasoline, petrol, diesel, LPG/CNG, and battery. According to the report, petrol represented the largest segment.

Petrol-powered two-wheelers are widely preferred in the Indian market due to several key factors. The availability and affordability of petrol make it the most accessible fuel option across the country. According to Industry POL & NG Consumption Report 2022 by the Petroleum Planning & Analysis Cell, the amount of petrol utilized in March 2022 was 2.90 MMT (0.83 million barrels per day, or mbpd), which is a 6.1% increase over the 2.74 MMT (0.78 mbpd) reported in the same month the previous year.

Besides this, the well-established petrol infrastructure ensures easy access to fuel even in remote areas, which is crucial for the vast Indian population. Also, petrol two-wheelers are generally more affordable to purchase compared to their electric counterparts. This aligns well with budget-conscious Indian consumers. The lower initial cost of petrol two-wheelers represents another major factor driving the segment growth. Additionally, the lack of comprehensive EV charging infrastructure, coupled with the relatively higher upfront cost of electric vehicles, continues to favor petrol-powered two-wheelers, making them the preferred choice for a majority of Indian consumers. The India two-wheeler market revenue is supported by the strong demand for petrol-powered two-wheelers, which are preferred for their affordability and widespread fuel availability.

Breakup by End User:

• Personal
• Commercial
   

Personal is the predominant market segment

A detailed breakup and analysis of the market based on the end user has also been provided in the report. This includes personal and commercial. According to the report, personal accounted for the largest market share.

Two-wheelers cater to a wide range of personal mobility needs, making them a versatile choice for numerous consumer demographics. From daily commuters seeking an affordable and efficient mode of transportation to enthusiasts looking for recreational rides, personal users find two-wheelers an attractive solution. Moreover, India's burgeoning middle-class population, coupled with the increasing urbanization trend, has created a substantial demand for personal mobility options. As people move from rural to urban areas for better opportunities, the challenges of urban commuting, including traffic congestion and limited parking space, make two-wheelers an ideal choice. Furthermore, the availability of financing options and easy loan schemes has made it more convenient for personal users to purchase two-wheelers, propelling the segment growth. The flexibility and affordability offered by two-wheelers make them the preferred mode of personal transportation for millions of Indians, thus contributing to the India two-wheeler demand.

Breakup by Distribution Channel:

• Offline Channels
• Online Channels
   

Offline channels represent the largest market segment

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes offline channels and online channels. According to the report, offline channels accounted for the largest market share.

The main factors that are driving the growth of this segment include the presence of diverse demographics across the country with varying levels of digital literacy. Many consumers, particularly in rural and semi-urban areas, still prefer the traditional brick-and-mortar approach when it comes to purchasing two-wheelers. They rely on physical dealerships for information, test rides, and the assurance of a face-to-face interaction with sales personnel. Additionally, the process of buying a two-wheeler often involves complex decision-making, including considerations of brand, model, financing, and after-sales service. Offline dealerships provide a comprehensive and consultative buying experience that helps consumers navigate these complexities effectively. Furthermore, the service and maintenance aspect of two-wheelers is crucial, and consumers often prefer to establish a relationship with a local dealership for servicing their vehicles. These offline channels offer convenience and trust, making them the preferred choice, especially in regions where in-person interactions and trust-building play a vital role in the purchase decision-making process. The India two-wheeler market outlook is positive, supported by robust offline dealership networks that cater to diverse demographics and traditional purchasing preferences.

Breakup by Region:

• North India
• West and Central India
• East India
• South India
   

West and Central India exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, West and Central India, East India, and South India. According to the report, West and Central India was the largest market for India two-wheeler in the country.

West and Central India held the biggest share in the market since the region is home to several major metropolitan areas, including Mumbai, Pune, and Ahmedabad, which dense populations and high levels of economic activity. These urban centers are hubs for various industries, contributing significantly to the demand for personal transportation. Additionally, the robust road infrastructure and relatively better connectivity in West and Central India make it conducive for two-wheeler usage. Moreover, the western and central regions of India have a diverse demographic mix, including a substantial middle-class population that often seeks affordable and practical commuting solutions, aligning well with the offerings of the two-wheeler market. Also, the presence of a burgeoning middle-class segment with inflating disposable income levels further fuels the demand for motorcycles and scooters, making it the largest regional market in the country. India two-wheeler market statistics reveal a robust growth driven by increasing urbanization, affordability, and a shift towards electric mobility solutions.

Competitive Landscape

India two-wheeler companies are actively pursuing several strategies to maintain and expand their market presence. Amongst these, one prominent strategy is the continuous innovation and diversification of product offerings. These players are introducing new models with advanced features, improved fuel efficiency, and enhanced safety features to cater to evolving consumer preferences. Additionally, there is a growing focus on electric two-wheelers as part of a sustainable mobility initiative, with many established players investing in electric vehicle (EV) technology and introducing electric scooter and motorcycle models to meet the demand for eco-friendly options. Furthermore, companies are expanding their dealership networks to penetrate deeper into rural and semi-urban areas, recognizing the potential in these untapped markets. They are also enhancing their after-sales service and customer support to build brand loyalty and trust. Collaborations and partnerships with financial institutions are becoming increasingly common, facilitating easier financing options for consumers. Moreover, marketing efforts are geared toward digital platforms and social media to connect with the tech-savvy Indian youth and enhance brand visibility.

The market research report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Bajaj Auto Ltd.
• Hero MotoCorp Ltd.
• Honda Motorcycle & Scooter India Pvt. Ltd.
• Maruti Suzuki India Limited
• TVS Motor Company
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Recent Developments:

• June 2023: Hero MotoCorp launched Hero Xtreme 160R, which is a standout model that meets the varied demands of Indian riders with a smooth fusion of athletic performance and comfort.
• April 2024: Bajaj Auto's subsidiary, Chetak Technologies Limited (CTL), is venturing into hydrogen-powered two-wheelers, potentially making Bajaj the first Indian manufacturer in this domain, while also expanding its portfolio beyond petrol and electric vehicles.
• January 2024: Honda Motorcycle & Scooter India Pvt. Ltd. announced the expansion of its production capacity with a new assembly line at its Vithalapur plant in Gujarat, adding 6.5 lakh units and reinforcing its commitment to local manufacturing.

India Two-Wheeler Market Report Scope:

Key Questions Answered in This Report:

• How has the India two-wheeler market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the India two-wheeler market?
• What is the impact of each driver, restraint, and opportunity on the India two-wheeler market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the India two-wheeler market?
• What is the breakup of the market based on technology?
• Which is the most attractive technology in the India two-wheeler market?
• What is the breakup of the market based on the transmission?
• Which is the most attractive transmission in the India two-wheeler market?
• What is the breakup of the market based on the engine capacity?
• Which is the most attractive engine capacity in the India two-wheeler market?
• What is the breakup of the market based on the fuel type?
• Which is the most attractive fuel type in the India two-wheeler market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the India two-wheeler market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the India two-wheeler market?
• What is the competitive structure of the India two-wheeler market?
• Who are the key players/companies in the India two-wheeler market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India two-wheeler market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and India two-wheeler market recent opportunities.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India two-wheeler industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.