Press Release

India All-Terrain Vehicle Market to Grow with a CAGR of 4.55% through 2031

Rising adventure tourism, expanding applications in agriculture and defense, and increasing disposable income among youth enthusiasts are the factors driving the market in the forecast period 2027–2031.

 

According to TechSci Research report, “India All-Terrain Vehicle Market – By Region, Competition, Opportunities and Forecast, 2021-2031F”, The India All-Terrain Vehicle Market was valued at USD 199.55 Million in 2025 and is expected to reach USD 260.61 Million by 2031 with a CAGR of 4.55% during the forecast period.

The India All-Terrain Vehicle (ATV) market is evolving rapidly, driven by technological innovation, changing regulatory frameworks, and the diversification of use cases beyond traditional recreational needs. The introduction of electric ATVs and hybrid drivetrain technologies is gaining momentum as manufacturers aim to align with India’s growing emphasis on sustainable mobility solutions. Parallelly, the classification of certain electric ATVs under the “electric tractor” category has opened up eligibility for government incentives, further boosting market interest among institutional buyers. Moreover, the integration of smart features such as app-based vehicle diagnostics, GPS-based tracking, and real-time performance monitoring is making ATVs more appealing for both commercial and specialized operations.

The market is also benefiting from a shift in public and private investment in border and remote-area infrastructure development. As logistical requirements in defense, mining, and surveillance grow in rough terrains, demand for rugged, compact, and versatile mobility platforms like ATVs is increasing. In rural economies, ATVs are emerging as viable alternatives for light agricultural haulage, small-scale transport, and last-mile connectivity in challenging landscapes. Furthermore, state-level tourism boards are beginning to recognize off-road parks and guided ATV trails as a part of eco-tourism and adventure tourism initiatives, further expanding the visibility of the segment.

 

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India All-Terrain Vehicle Market Is Segmented by Product Type, Engine Displacement, Application, and Region.

​In 2025, the Sports ATV segment emerged as the fastest-growing category in India’s all-terrain vehicle market. This surge is driven by the expanding popularity of adventure tourism, off-road racing events, and experiential leisure activities among younger consumers. With more urban professionals seeking adrenaline-based recreational outlets, the demand for high-performance ATVs with superior acceleration, suspension systems, and agility has grown significantly. Sports ATVs are also gaining traction through rental services at dedicated off-road parks and resorts, making them more accessible to first-time users and tourists. Their increasing use in short-distance adventure rides and organized motorsport competitions has helped push this segment ahead of utility variants, which traditionally dominated due to their functional advantages in agriculture and defense. The availability of lightweight designs, multiple drive modes, and digital instrumentation is further driving enthusiasm for sports models, especially among the 20–35 age demographic in metro and Tier I cities.

Among regions, South India recorded the fastest growth in ATV adoption in 2025. The region’s well-developed adventure tourism infrastructure and proactive state support for eco-tourism and motorsports have provided a strong base for market expansion. Coastal terrain diversity and hilly landscapes in states like Karnataka and Kerala offer natural off-road trails that attract enthusiasts and support ATV utility. With new dealerships, improved service networks, and promotional riding events becoming frequent, South India is emerging as a key contributor to ATV volume sales and experiential usage.


Major Market Players Operating in India All-Terrain Vehicle Market Are:

  • Textron, Inc.
  • Bombardier Recreational Products, Inc.
  • Zhejiang CFMoto Power Co., Ltd.
  • Polaris, Inc.
  • Deere & Company
  • Kwang Yang Motor Company Ltd.  
  • Suzuki Motor Corporation
  • Honda Motor Co. Ltd.  
  • Yamaha Motor Co., Ltd. 
  • Kawasaki Heavy Industries, Ltd.


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The rising popularity of shared mobility and rental business models is influencing the all-terrain vehicle market, particularly among young users and tourists who prefer short-term access over ownership. ATV rental services are gaining traction in leisure destinations, off-road parks, and adventure resorts, offering a cost-effective and hassle-free riding experience. This trend is enabling broader participation, as users can experience ATV riding without the burden of maintenance or high upfront costs. Shared ownership models are also emerging among communities and hobby groups, where costs are split and usage is scheduled, making ATV access more inclusive. Startups are experimenting with subscription-based models and guided riding packages, which cater to urban consumers seeking curated experiences. This shift toward access-over-ownership is expanding the customer base and allowing manufacturers and service providers to generate recurring revenue streams”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

India All-Terrain Vehicle Market – Segmented By Product Type (Utility ATV, Sports ATV), By Engine Displacement (Low, Medium, High), By Application (Entertainment, Sports, Agriculture, Military, Others), By Region, Competition, Opportunities and Forecast, 2021-2031F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the India All-Terrain Vehicle Market.

 

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India All-Terrain Vehicle Market By Product Type (Utility ATV, Sports ATV), By Engine Displacement (Low, Medium, High), By Application (Entertainment, Sports, Agriculture, Military, Others), By Region, Competition, Opportunities and Forecast, 2021-2031F

Automotive | Aug, 2025

Rising adventure tourism, expanding applications in agriculture and defense, and increasing disposable income among youth enthusiasts are the factors driving the market in the forecast period 2027–2031.

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