Report Description

Forecast Period


Market Size (2024)

USD 18.24 Billion

CAGR (2025-2030)


Fastest Growing Segment


Largest Market


Market Size (2030)

USD 33.13 Billion

Market Overview

India Two Wheeler Market was valued at USD 18.24 Billion in 2024 and is anticipated to project robust growth in the forecast period with a CAGR of 10.50%. The Indian two-wheeler market is a dynamic and integral part of the country's automotive sector, catering to diverse consumer needs and preferences across urban and rural landscapes. Characterized by a vast population and varying economic conditions, the market thrives on affordability, convenience, and efficiency. Two-wheelers serve as a primary mode of transportation for millions, offering mobility solutions that are essential for daily commutes and commercial activities alike.

The market's resilience is underscored by its adaptability to fluctuating economic conditions and consumer behaviors. Manufacturers continually innovate to meet evolving consumer expectations, integrating advanced technologies to enhance vehicle performance, safety, and comfort. From traditional motorcycles to modern electric scooters, the market embraces a wide array of product offerings that cater to different demographic segments and usage patterns.

India's cultural diversity influences consumer preferences, shaping the demand for two-wheelers across various states and regions. While urban centers witness a preference for stylish and feature-rich models suited for city commuting, rural areas prioritize durability, fuel efficiency, and ease of maintenance. This diversity in demand fosters a competitive landscape where manufacturers strive to strike a balance between innovation and affordability.

The regulatory environment also plays a crucial role in shaping the market dynamics. Government policies and incentives aimed at promoting cleaner and more sustainable transportation solutions have spurred interest in electric two-wheelers in recent years. This shift towards greener alternatives aligns with global trends towards environmental conservation and sustainable development.

The aftermarket and service sectors constitute significant pillars of the two-wheeler market ecosystem. Robust networks of dealerships and service centers ensure widespread accessibility to maintenance and repair services, thereby enhancing customer satisfaction and brand loyalty. This support infrastructure is vital in sustaining long-term relationships with consumers and fostering a positive market reputation.

The Indian two-wheeler market is poised for continued growth driven by urbanization, rising disposable incomes, and expanding middle-class aspirations. As manufacturers navigate market dynamics and consumer preferences, the emphasis remains on innovation, affordability, and sustainability. This holistic approach not only fuels market expansion but also contributes to the socio-economic development by providing reliable and efficient transportation solutions to millions across the country.  

Key Market Drivers

Urbanization and Population Growth

India's rapid urbanization and population growth are pivotal drivers of the two-wheeler market. With more people moving to urban areas for better job opportunities, the demand for affordable and efficient personal transportation has surged. Two-wheelers are ideal for navigating congested city streets and provide a convenient mode of transport for daily commutes. This urban shift has significantly boosted the sales of scooters and motorcycles, making them a preferred choice for the growing urban middle class.

Rising Disposable Income

The increase in disposable income among Indian consumers has also propelled the two-wheeler market. As economic conditions improve, more people can afford to purchase personal vehicles. The availability of various financing options and attractive loan schemes has further facilitated this trend. With higher disposable incomes, consumers are willing to invest in better and more advanced models, driving the market's growth and diversification.

Government Initiatives and Policies

Government initiatives and policies aimed at promoting electric vehicles (EVs) and reducing carbon emissions have significantly impacted the two-wheeler market. Subsidies, tax benefits, and incentives for EV manufacturers and buyers have encouraged the production and purchase of electric two-wheelers. For instance, the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme has played a crucial role in accelerating the adoption of EVs in India.

Technological Advancements

Technological advancements in the two-wheeler industry, including the development of more efficient engines, enhanced safety features, and improved battery technology for electric vehicles, have driven market growth. Innovations such as connected vehicles, smart helmets, and IoT integration have made two-wheelers more appealing to tech-savvy consumers. These advancements not only enhance the riding experience but also contribute to better fuel efficiency and lower maintenance costs. In December 2023, Simple Energy, the Bengaluru-based EV startup, unveiled the Dot One electric scooter. The Dot One boasts a fixed battery setup, providing a certified range of 151km and an impressive 160km in IDC conditions.

Rural Market Expansion

The expansion of the two-wheeler market into rural areas has been a significant driver. With improved rural infrastructure and connectivity, two-wheelers have become a vital means of transportation in these regions. The affordability and practicality of scooters and motorcycles make them suitable for rural consumers, who rely on them for commuting, agricultural activities, and small-scale business operations.

Manufacturing Facility Expansion to Cater Demand

Manufacturers are expanding their production capacities to meet the growing demand for two-wheelers. Increasing the number of assembly lines and enhancing manufacturing capabilities ensure a steady supply of vehicles to both domestic and international markets. This expansion helps companies keep up with the rising demand and maintain their competitive edge in the market. In January 2024, Honda Motorcycle & Scooter India (HMSI) inaugurated a third assembly line at its Vithalapur manufacturing facility, boosting its annual production capacity to 1.97 million units. This expansion supports the production of scooter models for both domestic and international markets, positioning HMSI as a frontrunner in the global scooterization movement.


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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

Electrification of Two-Wheelers

The trend towards electrification is rapidly gaining momentum in the Indian two-wheeler market. With environmental concerns and government incentives driving the change, manufacturers are increasingly focusing on electric scooters and motorcycles. The shift is evident in the growing number of new electric models being launched and the rising consumer interest in sustainable mobility solutions.

Increasing Investments and Mergers

The Indian two-wheeler market is witnessing a surge in investments and mergers. Both domestic and international investors are keen on tapping into this lucrative market. Startups and established players alike are securing substantial funding to expand their operations and enhance their product offerings. This influx of capital is driving innovation and competition within the industry. In November 2023, EMotorad, an Indian startup specializing in electric bikes, successfully secured $20 million in a Series B funding round. With ambitions to challenge China's dominance in the market and broaden its global footprint, EMotorad is gearing up for expansion.

Smart and Connected Two-Wheelers

The integration of smart technologies and connectivity features in two-wheelers is a significant trend. Modern scooters and motorcycles are equipped with advanced features like GPS navigation, Bluetooth connectivity, and smartphone integration. These features enhance the overall user experience, offering convenience and improved safety. The trend is particularly appealing to younger, tech-savvy consumers.

Customization and Personalization

Consumers are increasingly looking for ways to personalize their two-wheelers. Manufacturers are responding by offering a wide range of customization options, from aesthetic modifications to performance enhancements. This trend allows consumers to tailor their vehicles to their preferences, creating a unique identity for their rides. Customization also extends to accessories and gear, further enriching the riding experience.

Focus on Sustainability

Sustainability is becoming a core focus in the two-wheeler market. Companies are not only developing electric models but also implementing eco-friendly manufacturing processes and using sustainable materials. This holistic approach to sustainability is appealing to environmentally conscious consumers and aligns with global efforts to reduce carbon footprints.

Expansion of Urban Mobility Solutions

Urban mobility solutions, such as shared mobility and subscription-based services, are gaining traction. These solutions cater to the needs of urban dwellers who seek flexible and cost-effective transportation options. Companies are exploring various models, including bike-sharing and monthly subscriptions, to provide accessible and affordable mobility solutions in densely populated cities. In March 2024, Ather Energy revealed plans to launch a new scooter aimed at family-oriented customers, emphasizing its practicality and affordability. Named the Ather Rizta, this scooter has been teased several times and is set to debut on April 6, 2024, during the Ather Community Day event.

Segmental Insights

Propulsion Type Insights

The India two-wheeler market exhibits a diverse landscape segmented primarily by propulsion type, comprising Internal Combustion Engine (ICE) and Electric variants. The ICE segment encompassing motorcycles and scooters powered by petrol or diesel engines is the dominant segment. . These vehicles remain popular due to their affordability, established infrastructure, and widespread availability of fueling stations across the country. ICE-powered two-wheelers continue to cater to a broad demographic, from urban commuters seeking cost-effective mobility solutions to rural populations relying on robust performance in varying terrain conditions.

The electric two-wheeler segment is experiencing fastest growth driven by advancements in battery technology, government incentives promoting cleaner mobility solutions, and increasing environmental awareness among consumers. Electric scooters and motorcycles are gaining traction, especially in urban centers where concerns over air pollution and noise levels are pressing issues. These vehicles offer benefits such as lower operational costs, reduced maintenance requirements, and a quieter riding experience, appealing to eco-conscious consumers and those looking to minimize their carbon footprint.

The ICE segment faces challenges amidst a shifting regulatory landscape aimed at reducing emissions and promoting electric mobility. However, it remains resilient due to continued investments in engine efficiency, durability, and affordability. Manufacturers in this segment focus on enhancing fuel efficiency and performance characteristics to meet diverse consumer demands across urban and rural markets.

The electric segment is characterized by a burgeoning ecosystem of startups and established players introducing innovative models and charging solutions tailored to Indian market dynamics. The adoption of electric vehicles (EVs) is supported by government subsidies, tax incentives, and infrastructure development initiatives, bolstering consumer confidence and fostering a growing market presence.   


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Regional Insights

In North India, the dominant region in the market reflects a blend of urban and rural dynamics, with a demand driven by varying terrains and cultural influences. Consumers in this region prioritize factors such as durability, cost-effectiveness, and suitability for both daily commuting and occasional long-distance travel. The market caters to a wide range of economic segments, from budget-conscious buyers in smaller towns to premium bike enthusiasts in larger cities.

In East India, the two-wheeler market is characterized by a mix of traditional values and emerging trends. Consumers here prioritize affordability, reliability, and fuel efficiency. The region's market is influenced by factors such as local festivals and agricultural cycles, which impact purchasing patterns. Urban centers and semi-urban areas alike contribute to a steady demand for motorcycles and scooters, with manufacturers adapting their offerings to suit the preferences and needs of this diverse consumer base.

In West India, the two-wheeler market reflects a vibrant blend of urban sophistication and regional diversity. Consumers in this region value style, performance, and technological advancements in their choice of motorcycles and scooters. The market caters to a range of lifestyles, from bustling metropolitan cities to scenic rural areas. Manufacturers focus on delivering products that meet the demands of commuters navigating congested city streets as well as riders seeking adventure on winding highways and coastal roads.

South India presents a dynamic landscape for the two-wheeler market, driven by a mix of urbanization and cultural influences. Consumers here prioritize reliability, advanced features, and environmental sustainability in their purchasing decisions. The region's market is characterized by a strong demand for motorcycles, scooters, and mopeds that cater to diverse commuting needs and preferences. Urban centers influence trends in design and innovation, reflecting a consumer base that values both tradition and modernity.

Recent Developments

  • In June 2024, Allianz Partners India received approval from the Government of India's Patent Office for its Two-Wheeler Mobile Charger (TMC). This patent pertains to the "System and Method of Recharging Stranded Two-Wheeled Electric Vehicles through Two-Wheeler Mobile Charger." The patent was effective from November 28, 2021, and is valid for a duration of 20 years.
  • In June 2024, Brixton Motorcycles made its debut in India, revealing plans for its entry. Teaming up with KAW Veloce Motors Pvt. Ltd., the Austrian brand will introduce four models to the Indian market in time for the festive season.

Key Market Players

  • Hero MotoCorp Ltd.
  • Honda Motorcycle & Scooter India Pvt. Ltd.
  • India Yamaha Motor Pvt. Ltd.
  • Eicher Motors Ltd.
  • Bajaj Auto Ltd.
  • TVS Motor Company Limited
  • Suzuki Motorcycle India Private Limited (‘SMIPL’)
  • Piaggio Vehicles Pvt. Ltd.
  • Hero Electric Vehicles Pvt. Ltd. 
  • Okinawa Autotech Internationall Private Limited

By Vehicle Type

By Propulsion Type

By Region

  • Scooter/Moped
  • Motorcycles
  • ICE
  • Electric
  • North
  • East
  • West
  • South


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:   

o   Scooter/Moped

o   Motorcycles

  • India Two Wheeler Market, By Propulsion Type:  

o   ICE

o   Electric

  • India Two Wheeler Market, By Region:   

o   North

o   East

o   West

o   South

Competitive Landscape

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

Available Customizations:

India Two Wheeler Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

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

India India Two Wheeler Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Impact of COVID-19 on India Two Wheeler Market

5.    Voice of Customer Analysis

5.1.  Brand Awareness

5.2.  Brand Satisfaction

5.3.  Factors Affecting Purchase Decision

6.    India Two Wheeler Market Outlook

6.1.  Market Size & Forecast

6.1.1.    By Volume & Value

6.2.  Market Share & Forecast

6.2.1.    By Vehicle Type Market Share Analysis (Scooter/Moped, Motorcycles)

6.2.2.    By Propulsion Type Market Share Analysis (ICE, Electric)

6.2.3.    By Regional Market Share Analysis        North Market Share Analysis        East Market Share Analysis        West Market Share Analysis        South Market Share Analysis

6.2.4.    By Company Market Share Analysis (Top 5 Companies, Others - By Value, 2024)

6.3.  India Two Wheeler Market Mapping & Opportunity Assessment

6.3.1.    By Vehicle Type Market Mapping & Opportunity Assessment

6.3.2.    By Propulsion Type Market Mapping & Opportunity Assessment

6.3.3.    By Regional Market Mapping & Opportunity Assessment  

7.    India ICE Two Wheeler Market Outlook

7.1.  Market Size & Forecast

7.1.1.    By Volume & Value

7.2.  Market Share & Forecast

7.2.1.    By Vehicle Type Market Share Analysis (Scooter/Moped, Motorcycle)

7.2.2.    By Engine Capacity Market Share Analysis (Up to 125 cc, 126-250 cc, Above 250 cc)

8.    India ICE Motorcycle Market Outlook

8.1.  Market Size & Forecast

8.1.1.    By Value & Volume

8.2.  Market Share & Forecast

8.2.1.    By Engine Capacity Market Share Analysis (Up to 125 cc, 126-250 cc, Above 250 cc)

8.3.  Pricing Analysis & Product Benchmarking

9.    India ICE Scooter/Moped Market Outlook

9.1.  Market Size & Forecast

9.1.1.    By Value & Volume

9.2.  Market Share & Forecast (By Value)

9.2.1.    By Engine Capacity Market Share Analysis (Up to 125 cc, 126-250 cc, Above 250 cc)

9.3.  Pricing Analysis & Product Benchmarking

10. India Electric Two Wheeler Market Outlook  

10.1.           Market Size & Forecast

10.1.1. By Volume & Value

10.2.           Market Share & Forecast

10.2.1. By Vehicle Type Market Share Analysis (Motorcycle, Scooter/Moped)

10.2.2. By Battery Capacity Market Share Analysis (>25Ah, <25Ah)

10.3.           Pricing Analysis & Product Benchmarking

11. SWOT Analysis

11.1.           Strength

11.2.           Weakness

11.3.           Opportunities

11.4.           Threats

12. Market Dynamics

12.1.           Market Drivers

12.2.           Market Challenges

13. Market Trends and Developments

14. Policy & Regulatory Landscape

15. India Economic Profile

16. Competitive Landscape

16.1.           Company Profiles (Up to 10 Major Companies)

16.1.1. Hero MotoCorp Ltd.     Company Details     Key Product Offered     Recent Developments     Key Management Personnel

16.1.2. Honda Motorcycle & Scooter India Pvt. Ltd.     Company Details     Key Product Offered     Recent Developments     Key Management Personnel

16.1.3. India Yamaha Motor Pvt. Ltd.     Company Details     Key Product Offered     Recent Developments     Key Management Personnel

16.1.4. Eicher Motors Ltd.     Company Details     Key Product Offered     Recent Developments     Key Management Personnel

16.1.5. Bajaj Auto Ltd.     Company Details     Key Product Offered     Recent Developments     Key Management Personnel

16.1.6. TVS Motor Company Limited     Company Details     Key Product Offered     Recent Developments     Key Management Personnel

16.1.7. Suzuki Motorcycle India Private Limited (‘SMIPL’)     Company Details     Key Product Offered     Recent Developments     Key Management Personnel

16.1.8. Piaggio Vehicles Pvt. Ltd.     Company Details     Key Product Offered     Recent Developments     Key Management Personnel

16.1.9. Hero Electric Vehicles Pvt. Ltd.     Company Details     Key Product Offered     Recent Developments     Key Management Personnel

16.1.10. Okinawa Autotech Internationall Private Limited     Company Details     Key Product Offered     Recent Developments     Key Management Personnel

17. Strategic Recommendations

17.1.           Key Focus Areas

17.1.1. Target Region

17.1.2. Target By Vehicle Type  

17.1.3. Target By Propulsion Type

18. About Us & Disclaimer

Figures and Tables

Frequently asked questions


The market size of the India Two Wheeler Market was estimated to be USD 18.24 Billion in 2024.


The electric two wheelers emerged as the leading segment in the India Two Wheeler Market by propulsion type. Their dominance underscored a significant shift towards sustainable mobility solutions. This trend reflects growing consumer preference for eco-friendly alternatives amidst rising environmental awareness and technological advancements in electric vehicle technology.


North India retained the largest market share since the area is home to numerous significant metropolises, such as Delhi, Noida, and Gurgaon, 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.


The major drivers for the India Two Wheeler Market include increasing urbanization and congestion, affordability compared to four-wheelers, and government initiatives promoting electric vehicles and sustainable transportation solutions.


Srishti Verma

Business Consultant
Press Release

India Two Wheeler Market to Grow with a CAGR of 10.50% in India through 2030

Jun, 2024

Expansion of distribution networks, advancements in technology, and increasing urbanization with rising disposable incomes among the middle class are the factors driving the India two-wheeler market