|
Forecast
Period
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2025-2029
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|
Market
Size (2023)
|
USD
16.63 Billion
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CAGR
(2024-2029)
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10.29%
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Fastest
Growing Segment
|
Scooters
|
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Largest
Market
|
West
|
Market Overview
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 in India, 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.
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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
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.
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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.
Recent Developments
- The
introduction of Tiger 1200 in India has been scheduled by the business for
December 2022. It has features like a keyless entry system, a seven-inch TFT
display, a blind-spot radar system, a Showa semi-active suspension setup, and
up to six riding modes.
- The
new Dominar 400 upgrade has been released by the corporation as of October
2022. The sports tourer is built specifically for riders who seek durable
traveling necessities and comes equipped with factory-installed touring extras.
- The
2022 Monster Energy Yamaha MotoGP Edition models were unveiled by Yamaha Motor
Pvt. Ltd. in August 2022. These models include the RayZR 125 Fi Hybrid scooter,
the Maxi-sports Scooter AEROX 155, the Dark Warrior MT-15 V2.0, and the
Supersport YZF-R15M.
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
|
By Vehicle Type
|
By Propulsion Type
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By Region
|
|
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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
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