Press Release

Ethiopia Two-Wheeler Market to Grow with a CAGR of 3.48% through 2030

The Ethiopia two-wheeler market is driven by increasing urbanization, rising disposable incomes, and the growing demand for affordable transportation. These factors are boosting the adoption of motorcycles and scooters. These are the factors driving the market in the forecast period 2026-2030.

 

According to TechSci Research report, “Ethiopia Two-Wheeler Market – By Region, Competition, Forecast & Opportunities, 2020-2030F”, The Ethiopia Two-Wheeler Market was valued at US USD 657.0 Million in in 2024 and is expected to reach USD 806.5 Million by 2030 with a CAGR of 3.48% during the forecast period. The two-wheeler market in Ethiopia is on a strong growth trajectory, fueled by factors such as rapid urbanization and an increasing need for affordable transportation. As more individuals migrate to urban centers, where traffic congestion and limited public transport are common, motorcycles and scooters are becoming a popular choice for navigating the streets. Rising disposable income has made two-wheelers more accessible to a larger portion of the population, further stimulating market demand.

There is a growing trend towards electric two-wheelers, driven by both consumer preference for greener transportation and government incentives promoting sustainability. Consumers are seeking energy-efficient and low-maintenance vehicles, and advancements in battery technology are making electric motorcycles more viable. The increasing demand for two-wheelers is also supported by the rise in e-commerce and delivery services, further boosting the use of motorcycles in business operations. However, challenges such as high import duties and a lack of local manufacturing infrastructure still persist, which can increase the cost of two-wheelers. The limited availability of charging stations also hampers the widespread adoption of electric models. Despite these hurdles, the market continues to grow due to the demand for affordable and sustainable transport, paving the way for new developments and greater market opportunities in the coming years.

 

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Ethiopia Two-Wheeler Market Is Segmented By Vehicle Type, Propulsion Type and By Region.

The Ethiopia two-wheeler market is segmented by propulsion type into internal combustion engine (ICE) and electric variants. ICE-powered two-wheelers have been the traditional choice for many consumers due to their wide availability, lower upfront costs, and well-established fueling infrastructure. These vehicles typically run on gasoline and offer the flexibility of longer travel distances without the need for frequent recharging. They remain a popular choice for individuals seeking reliable transportation for daily commuting and business purposes, especially in areas where electric vehicle (EV) charging infrastructure is limited. On the other hand, electric two-wheelers are gaining attention due to their environmentally friendly attributes and lower operating costs. Electric motorcycles and scooters are seen as a more sustainable alternative, offering reduced emissions and lower maintenance requirements compared to ICE vehicles. The shift toward electric vehicles is being encouraged by rising environmental awareness, as well as government initiatives to reduce carbon footprints and promote clean energy. Though the adoption rate of electric two-wheelers is still emerging, improvements in battery technology and growing consumer interest in cost-effective, eco-friendly transportation solutions are contributing to the gradual expansion of the electric segment. The transition from ICE to electric vehicles is influenced by a variety of factors, such as the need for sustainable urban mobility, the growing cost of fuel, and the expansion of electric vehicle charging infrastructure in urban areas. While electric two-wheelers may face initial hurdles in terms of range and infrastructure, they represent an important part of the future growth of the market. As technology advances and awareness increases, it is expected that the market share of electric two-wheelers will continue to rise in Ethiopia’s transportation landscape.

 

Major Market Players Operating in Ethiopia Two-Wheeler Market Are:

  • Bajaj Auto Ltd.
  • TVS Motor Company Limited
  • Yamaha Motor Co., Ltd
  • Hero MotoCorp Ltd
  • Honda Motor Co, Ltd
  • Kwang Yang Motor Co., Ltd
  • Suzuki Motor Corporation
  • Sanyang Motor Co., Ltd
  • Lifan Motors
  • Luoyang Northern EK Chor Motorcycle Co., Ltd.


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The increasing demand for efficient and affordable transportation options is driving the growth of the Ethiopia two-wheeler market. Consumers are seeking advanced, cost-effective vehicles that offer improved fuel efficiency and lower maintenance costs, which is pushing the demand for innovative two-wheeler solutions. Manufacturers are focused on creating vehicles that provide better performance, durability, and reduced environmental impact, particularly with the growing interest in electric two-wheelers. Stricter regulations aimed at promoting sustainability and reducing urban congestion are further driving the need for efficient and eco-friendly transportation alternatives. As Ethiopia’s transportation landscape evolves, the demand for advanced two-wheelers that can support emerging technologies, such as electric powertrains and lightweight materials, is expected to increase.This shift is anticipated to significantly contribute to the market's growth in the coming years", said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm. 

Ethiopia Two-Wheeler Market By Vehicle Type (Scooter/Moped, Motorcycles), By Propulsion Type (ICE, Electric), By Region, Competition, Forecast & Opportunities, 2020-2030F”, 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 Ethiopia Two-Wheeler Market.

 

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