India Two Wheeler Market By Vehicle Type (Scooter/Moped, Motorcycles), By Propulsion Type (ICE, Electric), Region, Competition, Forecast & Opportunities, 2019-2029

India Two Wheeler Market By Vehicle Type (Scooter/Moped, Motorcycles), By Propulsion Type (ICE, Electric), Region, Competition, Forecast & Opportunities, 2019-2029

India Two Wheeler Market has valued at USD 16.63 Billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 10.29%. A two-wheeled vehicle, often propelled by an internal combustion engine or an electric motor, is referred to as a two-wheeler. These vehicles comprise several motorbikes, scooters, and moped models, each of which serves a different consumer demographic and function. For instance, whereas scooters are suitable for short commutes and city driving, motorbikes are frequently linked with long-distance travel and sport. Two-wheelers are also essential in developing nations like India since they offer a cheap and effective form of mobility. The importance of two-wheelers in facilitating mobility is growing as urbanization and traffic congestion both continue to expand. The fact that two-wheelers use less gasoline, cost less to buy, and emit fewer greenhouse gases—especially electric versions—has helped them become quite popular in India recently. One of the main drivers propelling the expansion of the two-wheeler market in India is the rise in vehicle ownership, which is coupled with a rising young population with a natural propensity toward personal mobility solutions that are both practical and fashionable. Moreover, another important component that promotes expansion is the simplicity of funding. Consumer-friendly lending programs, low interest rates, and flexible payment choices are being offered by financial institutions around the nation to lessen the financial load on the buyer.

These financing options enable potential owners to make purchases more quickly and with fewer hurdles to entry. Additionally, two-wheelers are becoming more appealing to consumers thanks to technology developments and breakthroughs in fuel efficiency, safety features like anti-lock brake systems (ABS), and smart features like GPS navigation.

Key Market Drivers

Economic Factors

Economic factors are fundamental drivers of the Indian two-wheeler market. India's economic growth and increasing disposable income have enabled a growing section of the population to afford personal transportation. This has been a key driver behind the robust demand for two-wheelers. As India's economy has grown, the income levels of the middle-class and urban populations have increased significantly. This has led to higher purchasing power and a greater willingness to invest in personal vehicles. Two-wheelers are a cost-effective mode of transportation, making them the preferred choice for many. The availability of affordable financing options such as two-wheeler loans has made it easier for individuals to purchase two-wheelers. This has boosted sales, especially in the entry-level and mid-segment categories. Economic growth has also extended to rural areas, where agriculture and allied industries contribute significantly to incomes. The two-wheeler market has capitalized on this by offering durable and economical transportation solutions, benefiting both farmers and rural consumers.

Urbanization and Congestion

Rapid urbanization and increasing traffic congestion in Indian cities have been pivotal drivers of the two-wheeler market. As Indian cities become increasingly congested, two-wheelers offer a practical solution for maneuvering through traffic. They are agile, occupy less space, and are easier to park, making them highly convenient for urban commuters. In cities with developing public transportation infrastructure, two-wheelers serve as an essential last-mile connectivity option. They bridge the gap between public transport hubs and one's destination, making them an integral part of urban commuting. Urbanization has also influenced lifestyle choices. The youth are looking for convenient, affordable, and stylish modes of transportation, making scooters and motorcycles highly attractive options.

Government Regulations and Policies

Government policies and regulations have a substantial impact on the two-wheeler market in India. Over the years, both central and state governments have implemented policies that have either positively or negatively influenced the market. The Indian government has imposed strict emission standards, including Bharat Stage (BS) norms, to control pollution levels. This has led to a continuous upgrade of technology in the two-wheeler industry, as manufacturers strive to meet these standards. The push for cleaner and more fuel-efficient vehicles has led to the development of eco-friendly two-wheelers. The government has also implemented safety regulations, making features like ABS (Anti-lock Braking System) and CBS (Combined Braking System) mandatory in two-wheelers. This has not only enhanced the safety of riders but also pushed manufacturers to improve the overall quality of their products. Governments at both state and central levels have occasionally offered subsidies and incentives for the manufacturing and adoption of electric two-wheelers. These initiatives have encouraged the growth of electric two-wheelers in India.

Cultural Preferences

Cultural factors play a significant role in shaping consumer preferences in India. Two-wheelers are deeply embedded in the cultural fabric of the country and are seen as more than just a mode of transportation. In India, two-wheelers are often used for family outings, with the capacity to accommodate multiple riders. This aligns with the culture of togetherness and family bonding, making two-wheelers a popular choice for Indian households. Two-wheelers are considered gender-neutral, which means they are accessible and acceptable for both men and women. This inclusivity has expanded the market significantly, with various models catering to diverse consumer needs. Two-wheelers are often associated with festivals and celebrations in India. During festivals and special occasions, people often gift or purchase two-wheelers, contributing to seasonal spikes in sales.

Competitive Landscape

The competitive landscape is another crucial driver of the Indian two-wheeler market. Numerous domestic and international manufacturers operate in the market, offering a wide range of products to cater to diverse consumer preferences. The presence of multiple competitors has driven innovation and technological advancement. Companies continually strive to outdo each other in terms of design, features, and fuel efficiency, resulting in a wide array of options for consumers. Intense competition has also led to competitive pricing strategies. Manufacturers offer a range of two-wheelers at various price points to cater to different segments of the market. This price diversity ensures that two-wheelers remain accessible to a wide range of consumers. Strong competition has also led to aggressive marketing and branding efforts. Manufacturers invest heavily in marketing campaigns and brand building to create a distinct identity and connect with consumers.

Key Market Challenges

Regulatory Changes and Emission Standards

One of the most significant challenges faced by the Indian two-wheeler market is the continuously evolving regulatory landscape. The Indian government, concerned about rising air pollution levels, has been implementing stringent emission standards. Here are the key aspects of this challenge. India follows the Bharat Stage emission standards, equivalent to Euro standards in Europe, to regulate vehicle emissions. The government regularly updates these standards to reduce air pollution. Manufacturers must invest in research and development to meet these standards, which can lead to increased production costs. The transition to BS-VI emissions standards in April 2020 was a significant challenge for two-wheeler manufacturers. Complying with these stricter standards required substantial investments in new technology, refining fuel quality, and redesigning engine components. The higher costs of manufacturing compliant vehicles were partially passed on to consumers, affecting pricing and demand. Frequent changes in regulations and the lack of long-term policy consistency can disrupt the industry's planning and investment. Uncertainty about future emission standards can lead to challenges in product development and investment decisions. While the push for cleaner mobility is positive, the rapid changes in electric vehicle policies and subsidies can be a challenge. Manufacturers need to adapt quickly to remain competitive in the electric two-wheeler segment.

Economic Factors and Market Volatility

Economic factors, both domestic and international, can significantly impact the Indian two-wheeler market. Several aspects of this challenge include Economic recessions or downturns, as experienced during the COVID-19 pandemic, can lead to reduced consumer spending and uncertainty. In such periods, consumers often delay or reconsider discretionary purchases like two-wheelers. Fuel prices have a direct influence on the choice between two-wheelers and four-wheelers. When fuel prices rise, there is a greater demand for fuel-efficient two-wheelers. Conversely, lower fuel prices may favor four-wheelers, especially in rural areas. Exchange rate fluctuations can impact the cost of imported components and materials for two-wheeler manufacturing. This can affect pricing and profit margins, particularly for brands relying on international suppliers. Access to affordable financing plays a critical role in two-wheeler sales. Changes in lending rates, policies, and accessibility can impact consumer demand.

Safety Concerns and Road Infrastructure

Safety concerns and the state of road infrastructure are significant challenges for the Indian two-wheeler market. Several issues contribute to this challenge: India has one of the highest rates of road accidents globally, with a disproportionately high number of two-wheeler riders involved. Safety concerns can deter potential buyers from opting for two-wheelers. Many Indian roads, especially in rural areas, are in poor condition. This affects ride comfort, vehicle maintenance, and safety. Better road infrastructure is needed to enhance the riding experience and encourage two-wheeler use. Despite regulations mandating helmets and protective gear, compliance is often low, especially in rural areas. An effort to promote safety gear and its usage is essential. While there have been improvements in vehicle safety standards, there is room for further advancements, including features like airbags for two-wheelers. These can significantly reduce injury risks but also add to production costs.

Competition and Brand Loyalty

The Indian two-wheeler market is highly competitive, with numerous domestic and international players vying for market share. The following factors contribute to the challenge of competition and brand loyalty: The presence of established Indian manufacturers, global brands, and new entrants makes competition in the two-wheeler market fierce. Manufacturers are constantly innovating to differentiate their products and gain a competitive edge. While some consumers have strong brand loyalty, others are open to exploring various brands and models. Building and retaining brand loyalty in a highly competitive market requires substantial marketing efforts and quality assurance. Consumer preferences can shift quickly, influenced by factors such as fashion, technological advancements, and environmental concerns. Manufacturers need to stay attuned to these changes to cater to evolving demands. The presence of counterfeit or substandard parts and accessories in the market poses a challenge to established brands. These products can negatively impact the brand's reputation and consumer trust.

Infrastructure and Logistics

Efficient infrastructure and logistics are vital for the two-wheeler market. Several aspects of this challenge include Establishing and maintaining a robust network of dealerships, service centers, and spare parts availability is crucial for customer satisfaction and brand loyalty. This is especially challenging in remote or less-accessible regions. Increasing traffic congestion in urban areas can make commuting on two-wheelers less convenient. The challenge is to improve urban planning and create dedicated lanes for two-wheelers to encourage their use. Events like natural disasters or pandemics can disrupt the supply chain, affecting the timely availability of parts and components for manufacturing. As electric two-wheelers gain popularity, the need for a widespread and efficient charging infrastructure becomes paramount. The lack of charging stations can deter potential electric vehicle buyers.

Key Market Trends

Shift Towards Electric Two-Wheelers

One of the most prominent trends in the Indian two-wheeler market is the growing interest in electric vehicles (EVs), including electric scooters and motorcycles. Several factors are driving this trend: Increasing environmental awareness and concerns about air pollution have prompted consumers to consider cleaner and greener alternatives to conventional petrol and diesel-powered two-wheelers. The Indian government has introduced various incentives and subsidies to promote the adoption of electric vehicles. These include the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, which provides financial incentives for electric vehicle buyers. The development of more efficient and affordable lithium-ion batteries has made electric two-wheelers a more practical and cost-effective choice for consumers. These batteries offer longer ranges and faster charging times. Several startups and established two-wheeler manufacturers are entering the electric two-wheeler segment, offering a range of stylish and technologically advanced electric scooters and motorcycles. This trend is expected to continue growing as the infrastructure for charging stations and battery swapping networks expands and consumers become more comfortable with the idea of electric mobility.

Increasing Preference for Premium and Performance Bikes

While the Indian two-wheeler market has traditionally been dominated by commuter motorcycles and scooters, there is a noticeable shift towards premium and high-performance motorcycles. This trend is fueled by various factors: A rising middle class with higher disposable incomes is increasingly looking for premium and performance-oriented two-wheelers. Consumers are willing to invest in vehicles that offer superior design, features, and performance. The popularity of motorsports, adventure riding, and long-distance touring has led to a surge in demand for sports and adventure bikes. These bikes offer advanced features, robust engines, and enhanced capabilities for off-road and long-distance riding. Leading two-wheeler manufacturers have expanded their product portfolios to include premium and performance-oriented models. Brands like Royal Enfield, KTM, and Harley-Davidson have gained significant market share in this segment. Many consumers are now looking to personalize their bikes, leading to a demand for customizable and modular two-wheelers. Manufacturers and aftermarket companies are catering to this trend. As the market continues to evolve, premium and performance two-wheelers are likely to see sustained growth, with opportunities for innovation in technology, design, and features.

Emphasis on Safety Features and Regulations

Safety has become a significant focus in the Indian two-wheeler market due to increasing road accidents and fatalities. Several trends reflect this heightened emphasis on safety: The Indian government has mandated the inclusion of safety features such as Anti-lock Braking Systems (ABS) and Combined Braking Systems (CBS) in two-wheelers. These features enhance braking performance and reduce the risk of accidents. The adoption of safer riding gear, including helmets with enhanced features such as full-face designs, anti-fog visors, and better impact protection, has become increasingly common among riders. The growth of organized riding schools and training programs, such as those offered by the Motorcycle Safety Foundation (MSF), is encouraging responsible riding practices and safety awareness. Two-wheeler manufacturers are incorporating advanced safety technologies, including traction control, stability control, and cornering ABS, in their premium models. This trend highlights the evolving consumer consciousness around safety, leading to a transformation in the design and manufacturing of two-wheelers in India.

Online Sales and Digital Platforms

The proliferation of digital technology and e-commerce has significantly impacted the way two-wheelers are bought and sold in India. Key trends in this regard include: Several two-wheeler manufacturers and dealers have established online sales platforms, allowing consumers to browse, configure, and purchase two-wheelers from the comfort of their homes. Virtual showrooms and 360-degree tours of vehicles have become common, providing a rich online buying experience with detailed information and imagery. The entire buying process, including financing and documentation, can now be completed online, simplifying the purchase for consumers. Online classified platforms and specialized websites for buying and selling used two-wheelers have gained popularity, making it easier for consumers to find pre-owned vehicles. This trend not only caters to the tech-savvy urban population but also reaches consumers in smaller towns and rural areas, expanding the reach of two-wheeler brands.

Ride-Sharing and Last-Mile Connectivity

The growth of ride-sharing platforms and the increasing demand for last-mile connectivity have shaped the two-wheeler market in India. Several factors contribute to this trend: Companies like Ola and Uber have introduced bike-sharing services, enabling consumers to book short rides on two-wheelers. This is especially popular for quick commutes in congested urban areas. Bike rental services, both electric and conventional, have gained traction in tourist destinations and major cities. These services provide tourists and residents with a convenient way to explore the area. The expansion of dedicated bike lanes and parking facilities in urban areas has made two-wheelers more accessible and convenient for daily commuting. Many cities are promoting the integration of two-wheelers with public transportation, allowing commuters to cover the first and last mile of their journey with ease. This trend is likely to persist as urbanization continues, and the need for efficient, convenient, and eco-friendly last-mile transportation solutions grows.

Segmental Insights

Vehicle Type Insights

The segment's dominant vehicle type is the motorcycle. Motorcycles can be used for a variety of purposes, including everyday commuting, long-distance travel, and even leisure riding. They have a wide range of uses, making them the preferred option for many different types of people. Additionally, the issue of price is crucial. In a country where consumers are sensitive to price, like India, motorcycles sometimes have lower initial purchase costs than scooters or other two-wheeler models. Many Indian consumers, especially those who fall into the middle class and lower income brackets, have tight budgets, and this pricing fits in nicely with their needs. In addition, motorcycles are renowned for their strength and endurance, which is important given India's diverse topography and road conditions. Fuel efficiency is yet another noteworthy benefit.

Regional Insights

West India retained the largest market share since the area is home to numerous significant metropolises, such as Mumbai, Pune, and Ahmedabad, with dense populations and high levels of economic activity. The need for personal mobility is greatly influenced by the fact that these urban centers serve as hubs for numerous sectors. West India is also a favorable location for two-wheeler use because of the strong road infrastructure and comparatively better connectivity. Furthermore, the population of the western areas of India is diversified, with a sizeable middle-class population that frequently searches out practical and economical transportation options, which fits in well with the two-wheeler market's product offers. Also boosting the market for motorbikes and scooters and making it the largest consumer good, the presence of a growing middle-class group with rising disposable income levels.

Key Market Players

Hero MotoCorp

Honda Motorcycle & Scooter India

Yamaha motor

Eicher’s Motor

Bajaj Auto

TVS Motor Company

Suzuki Motorcycle India, Private Limited

Piaggio vehicles Pvt ltd

Hero Electric

Okinawa

Report Scope:

In this report, the India Two Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Two Wheeler Market, By Vehicle Type:
• Scooter/Moped
• Motorcycles
• India Two Wheeler Market, By Propulsion Type:
• ICE
• Electric
• India Two Wheeler Market, By Region:
• North
• East
• West
• South

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Two Wheeler Market.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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