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Market Research Report

India Two Wheeler Market Outlook 2019-2035: Growth Opportunities | Trends | Share-Sales | COVID-19 Impact Analysis

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India Two Wheeler Market Overview (2021 Edition)

Indian two-wheeler market felt down again in December for the thirteenth consecutive month ending the year 2018 with over 3 million units below the record established in the previous year, down 14.4%. All top brands have lost like Suzuki, which gained to place in the ranking scoring the new all-time sales record.The automotive manufacturing industry comprises the production of commercial vehicles, passenger cars, three & two-wheelers. India became the 4th largest auto market in 2017 with sales (excluding two-wheelers) increasing 9.5 per cent year-on-year to 4.02 million units in 2017. Overall domestic automobiles sales increased at 7.01 per cent CAGR between FY13-18 with 24.97 million vehicles getting sold in FY18. Domestic automobile production increased at 7.08 per cent CAGR between FY13-18 with 29.07 million vehicles manufactured in the country in FY18. During April-December 2018, automobile production increased by 11.34 per cent year-on-year to reach 23.86 million units. During April-December 2018, highest year-on-year growth in domestic sales among all the categories was recorded in commercial vehicles at 25.86 per cent followed by 18.85 per cent year-on-year growth in the sales of three-wheelers

Market Dynamics (Market Drivers and Restraints, Consumer Trends)

Growth Drivers

Rising income and a large young population.  Greater availability of credit and financing options.  Demand for commercial vehicles increasing due to high level of activity in infrastructure sector. Growing demand .Clear vision of Indian government to make India an auto manufacturing hub.  Initiatives like ‘Make in India’, ‘Automotive Mission Plan 2026’, and NEMMP 2020 to give a huge boost to the sector.  Introduction of a new National Auto Policy and Faster Adoption and manufacture of Hybrid and Electric Vehicles (FAME) II for a clean future in mobility to be launched soon. Policy Support . Improving road infrastructure.  Established auto ancillary industry giving the required support to boost growth. 5.11 per cent of total FDI inflows to India from April 2000 to September 2018 went into the automobiles sector.


Strong support from the government; setting up of NATRIP centres. Private players, such as Hyundai, Suzuki, GM, keen to set up R&D base in India. Strong education base, large skilled English-speaking manpower. Comparative advantage in terms of cost. Firms both national and foreign are increasing their footprints with over 1,165 R&D centres. Mahindra & Mahindra targeting on implementing digital technology in the business. Bajaj Auto, Hero Honda & M&M plan to jointly develop a technology for 2-wheelers to run on natural gas. Tata Motors to launch MiniCAT, a car running on compressed air, Hyundai is planning to enter the hybrid vehicles segment, to explore alternative fuel technology & to avail the government incentives. General Motors, Nissan & Toyota announced plans to make India their global hub for small cars. Passenger vehicle market is expected to touch 10 million units by 2020. Sales crossed 3.2 million in FY18. However, the biggest challenge and restraints for the two wheeler industry in India would be to make the transition of the two norms related to safety and emission over the next 12 months.

Market Trend

Motorcycle sales in India skyrocketed over the past few years, making the country the biggest motorcycle market in the World overtaking China since the 2016 and achieving a record volume of 22.4 million units (including commercial three-wheeler) in the 2018. The electric scooter segment for which the Government just raised a target to grow at 20 million units in the next 5 years, dropped over 40%. Several factors causing slowdown is increase in insurance premium in 2018 and new BS-VI emission norms which were taking effect in April 2020. This led to the fact that people where waiting for discounts on BS-IV models and more BS-VI compliant models to land in the showrooms. The price of BS-VI model could be higher than the current price. So, we can forecast that the sales will continue slipping for few more months and bounce back once the new emission standards are introduced. We are even more negative about the fact that the impact of expected new regulation which will shift the manufacturers focus toward the government 2025 who has a target of 90% electric vehicles production and sales.

Geographical Markets (Dominate Market/Target Opportunities)

Two-wheelers and passenger vehicles dominate the domestic Indian auto market. Passenger car sales are dominated by small and mid-size cars. Two-wheelers accounted for 81 per cent of over 24.97 million vehicles sold in FY18, respectively. Overall automobile exports reached 4.04 million vehicles in FY18, implying a CAGR of 6.86 per cent between FY13-18. Two-wheelers made up 69.7 per cent of the exported vehicles, followed by passenger vehicles at 18.5 per cent, three-wheelers at 9.4 per cent and commercial vehicles at 2.4 per cent. Overall automobile exports increased by 18.53 per cent year-on-year during April-December 2018. In Scooter segment, Suzuki and TVS gained 2% market share and market leader Honda lost 1% and Yamaha and Hero lost 2% market share in 2018. The Hero is trying to penetrate this segment with mix product and marketing strategy but could not achieve the desired result. Indian Two-Wheeler Industry has seen 13%, Scooter segment 9%, and Motorcycle segment 16% growth in the year 2018 compare to the year 2017.

Players Specific Data (Product Launch, International and Domestic Players Dominance, Sales Distribution)

Product Launch: The Hero Maestro was launched in 2012, and became the first scooter from India's leading two-wheeler manufacturer, Hero MotoCorp, after that Honda set up its independent operations. By 2017, the second generation model, called the Maestro Edge became Hero's largest selling scooter. Today, it still ranks as Hero's most popular scooter and is available in two engine options - a 110 cc as well as a 125 cc model.

When India's TVS Motor Company introduced its flagship 125 cc scooter, the NTorq 125 in early 2018, it broke new ground in the Indian scooter segment. With first-in-class features like Bluetooth connectivity, turn-by-turn navigation on a full-digital instrument console, and a smooth and powerful 3-valve engine, the TVS NTorq 125 changed the way 125 cc scooters are looked at in India. Today, it's one of the best all-round scooters available on sale, and will probably go down as one of the game changers in the scooter market.

The Suzuki Access 125 is the highest-selling 125 cc scooter in India

Suzuki Motorcycle India may not have the volumes to compete with two-wheeler market leaders like Hero, Honda, TVS and Bajaj. But where Suzuki scores big time is in well-rounded products, and some of these became hot favourites in their segment over the past decade. With decent fuel economy for a 125 cc engine, smooth and refined performance, as well as very good road manners, the Suzuki Access 125 cemented its place as India's highest-selling 125 cc scooter.

Honda Motorcycle and Scooter India is best-known for the ubiquitous Activa scooter, India's most popular scooter for decades now. But when Honda's entry-level sport touring motorcycle, the Honda CBR250R was launched in 2011, it started a new generation of motorcycle touring fans. With its smooth engine, decent cruising ability and bulletproof reliability, the CBR250R still has a strong fan following, even though it has been replaced in several global markets by the slightly bigger CBR300R, the Honda CBR250R to this day is considered a benchmark in the entry-level sport touring category in India.

International and Domestics Players Dominance

Market leader in the passenger vehicles segment and held around 50 per cent market share in the segment in FY18. The company recorded its highest ever sales of 1,779,574 units during 2017-18, a year-on-year increase of 13.4 per cent. The company crossed its cumulative production milestone of four million two wheelers from its Gurugram-based plant in 2018. Market leader in the commercial vehicles segment held 44 per cent market share in FY18. Company’s commercial vehicles sales increased 26 per cent year-on-year to 39,859 units in August 2018. Tata unveiled its Tata Tigor electric car during the 2018 auto show and won a bid from Energy Efficiency Services Ltd (EESL) in 2017 under which Tata can sell 10,000 units of its Tigor EV. As of January 2019, Tata to soon unveil the electric car based on its newly developed Alpha Platform as a long term plan for sustainable mobility. Hero MotoCorp and Honda are the top two players in the two-wheelers segment, with market share of 37.67 per cent and 30.9 per cent, respectively in Q1 FY19. Bajaj Auto recorded domestic motorcycle sale of 1.57 million units in December 2018, up by 39 per cent over December 2017. Honda Cars India had a cumulative growth of 3.7 per cent year-on-year by selling 134,797 units during April December 2018. Bajaj Auto is a leader in three wheelers with 58.15 per cent market share in FY18. As of February 2019, Bajaj Auto will launch its new all electric brand Urbanite in India in the coming six to nine months. Piaggio Vehicles is the second leader in three wheelers with 24.05 per cent market share in FY18. India's largest two-wheeler manufacturer, Hero MotoCorp maintained its pole position with a market share 35.9 per cent - a loss of over one percentage point from 36.6 per cent market share a year ago. In FY19, Hero MotoCorp sold 7,612,775 units with an increase of 3.12 per cent as compared to 7,382,718 units dispatched in the preceding year.

Key Market Players

  • Hero
  • T.V.S
  • Bajaj Auto
  • KTM
  • Suzuki
  • Royal Enfield
  • Yamaha
  • Piaggio
  • Harley Davidson

COVID-19 impact on "India Two Wheeler Market"

The report analyses and includes complete detailed chapter of 50-70 pages about the short term & long terms impact of COVID-19 outbreak on each segment of "India Two Wheeler Market" along with government measures to support the sector. It also showcases the current market landscape during COVID, impact of the virus on leading companies, expected demand schedule and supply chain in the industry and other various major factors. This will help you identify those companies that may benefit from this pandemic as well as those that will lose out.

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Key questions answered in this research report

  • What is the total market size by 2035 and what would be the expected growth rate of sales?
  • What are the total sales in 2018-19 and what would be the expected demand over the forecast period?
  • What are the recent developments and business strategy of companies?
  • What are the market opportunities for the existing and entry level players?
  • What are the key market trends?
  • What are the factors which are driving this market?
  • What are the major barriers to market growth?
  • Who are the key vendors in this market space?

Reasons to buy this market study

  • India Two Wheeler Market Facilitate decision-making based on strong historic and forecast data for
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  • Position yourself to gain the maximum advantage of the Reasons to buy this market study
  • India Two Wheeler Market Facilitate decision-making based on strong historic and forecast data for
  • Develop strategies based on the latest regulatory framework
  • Position yourself to gain the maximum advantage of the India Two Wheeler Market’s growth potential
  • Identify key partners and business development avenues across the globe
  • Respond to your competitor’s business structure, strategy and prospects’s growth potential

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India Two Wheeler Market Outlook 2019-2035: Growth Opportunities | Trends | Share-Sales | COVID-19 Impact Analysis

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