India Two-Wheeler Market

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 rising purchasing power of the middle-class population, escalating demand for practical commuting solutions owing to rapid urbanization across the country, and the availability of easy finance options represent the primary factors propelling the market growth.

A two-wheeler refers to a vehicle that operates on two wheels, typically powered by an internal combustion engine or an electric motor. These vehicles include various types of motorcycles, scooters, and mopeds, each serving distinct purposes and consumer demographics. For instance, motorcycles are often associated with long-distance travel and sport, whereas scooters offer practicality for short commutes and city driving. Additionally, two-wheelers are crucial in emerging markets like India, providing an affordable and efficient means of transportation. As urbanization accelerates and traffic congestion continues to grow, the role of two-wheelers in facilitating mobility is becoming increasingly essential. At present, two-wheelers are gaining immense popularity in India due to their fuel efficiency, lower purchase costs, and reduced carbon emissions, particularly in electric variants.

In India, the rise in vehicle ownership, coupled with an expanding young population with a natural inclination toward personal mobility solutions that are both efficient and stylish, represents one of the key factors driving the growth of the two-wheeler market. Moreover, the ease of financing is another major growth-inducing factor. Financial institutions across the country are offering consumer-friendly loan schemes, low-interest rates, and flexible payment options that minimize the financial burden on the buyer. These finance options are catalyzing quicker purchasing decisions and lower entry barriers for potential owners. Besides this, technological advancements and innovations in fuel efficiency, safety features such as anti-lock braking systems (ABS), and smart features like GPS navigation are making two-wheelers more attractive to consumers. The gradual shift toward electric and hybrid two-wheelers, propelled by government incentives and a heightened awareness of environmental sustainability, is contributing to market growth. Furthermore, the role of women as active participants in the workforce has augmented the demand for scooters and other lighter, easier-to-manage two-wheelers, fueling the market growth.

India Two-Wheeler Market Trends/Drivers:

Rise in consumer disposable incomes

The expanding middle-class population with increased purchasing power stands as one of the crucial market drivers for the country's two-wheeler industry. As economic conditions in India continue to improve, a rising number of consumers are finding themselves financially capable of owning personal vehicles. The middle-class segment, often first-time vehicle owners, perceives two-wheelers as an affordable and practical choice. This affordability in the initial purchase price and the lower operating costs of two-wheelers, such as fuel and maintenance, compared to four-wheelers, is accelerating the product adoption rate. As disposable income grows, the middle-class population is increasingly able to opt for higher-end, feature-rich two-wheelers that offer advanced technologies, better safety measures, and greater fuel efficiency, thus catalyzing the market expansion. In addition, the availability of various financing options, including tailored loan packages, low-interest rate schemes, and zero down-payment plans, caters to this demographic, making it easier to complete a purchase, thereby driving sales volume and revenue for the industry.

Rapid Urbanization and Increasing Traffic Congestion

Urbanization is another critical driver propelling the two-wheeler market in India. As more people move from rural to urban settings for work and better living conditions, there has been an increase in challenges associated with urban commuting, emphasizing the inadequacies of public transportation and the impracticality of four-wheelers in densely populated cities due to the rising issues of traffic congestion and limited parking space. Two-wheelers offer a more agile and convenient alternative, allowing easier navigation through tight spaces and crowded streets. Their higher fuel efficiency is an additional benefit in urban environments where stop-and-go traffic is the norm. This practicality offered by two-wheelers in these conditions fuels their demand. Moreover, many Indian cities are striving to reduce their carbon footprint owing to the push for sustainability, and two-wheelers, especially electric and hybrid variants, align well with these environmental goals. Government initiatives like subsidies on electric two-wheelers and the establishment of charging infrastructure are making these eco-friendly options more accessible to the urban population, further supporting market growth.

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 regional levels from 2024-2032. Our report has categorized the market based on type, technology, transmission, engine capacity, fuel type, end-user, distribution channel, and region.

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 cater to a wide range of consumer needs, from daily commuting to long-distance travel and even recreational riding. They offer a broad spectrum of utility, making them the go-to choice for a diverse demographic. In addition, the affordability factor plays a pivotal role. In a price-sensitive market like India, motorcycles often come with a lower initial purchase price compared to scooters or other two-wheeler variants. This affordability aligns well with the budget constraints of many Indian consumers, particularly those in the middle-class and lower-income segments. Besides this, motorcycles are known for their robustness and durability, which is a crucial consideration in India's varied terrains and road conditions. Fuel efficiency is another significant advantage, and with inflating fuel prices, this feature has become increasingly attractive to consumers, thus fueling the segment growth.

Breakup by Technology:

• ICE
• Electric
   

ICE holds the largest share in the industry

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 Indian consumers due to their affordability and familiarity. Traditional ICE-powered two-wheelers are generally more cost-effective to manufacture and purchase compared to their electric counterparts, making them accessible to a broader segment of the population, especially in a price-sensitive market like India. Additionally, the existing infrastructure for fossil fuels, such as petrol and diesel, is well-established, ensuring easy access to fuel for ICE vehicles across the country. 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.

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. 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.

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 market growth.

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.

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.

Competitive Landscape

Key players in the India two-wheeler industry 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

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 opportunities in the India two-wheeler market.
• 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.