China Two Wheeler Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

China Two Wheeler Market Analysis

The China Two Wheeler Market size is estimated at 363.7 billion USD in 2025, and is expected to reach 393.2 billion USD by 2029, growing at a CAGR of 1.97% during the forecast period (2025-2029).

The Chinese two-wheeler industry is experiencing significant transformation driven by technological advancement and strategic consolidation. Major manufacturers are forming strategic partnerships to strengthen their market positions and enhance their technological capabilities. In 2023, notable collaborations included SUNRA's partnership with Indonesian state-owned enterprise IBC to accelerate EV industry development, and Loncin GM's alliance with Baidu Wenxin to reshape the cycling landscape. These partnerships reflect the industry's focus on innovation and market expansion, with companies investing heavily in research and development to maintain competitive advantages.

The market landscape is characterized by robust manufacturing capabilities and infrastructure development. The industry's production capacity has expanded significantly, with leading manufacturers like DACHANGJIANG GROUP maintaining an annual production capacity of 3 million engines and 3 million motorcycles. This manufacturing prowess is complemented by rapid infrastructure growth, evidenced by China's impressive network of 1,760,000 charging stations established by 2022. The extensive charging infrastructure has been crucial in supporting the transition to electric two-wheeler mobility and enhancing consumer confidence in electric two-wheelers.

Technological innovation continues to drive market evolution, particularly in the electric two-wheeler segment. Companies are investing in advanced technologies, with several manufacturers introducing innovative features such as GPS navigation, swappable batteries, and intelligent connectivity systems. In July 2023, SUNRA achieved a significant milestone by launching the first mass-produced two-wheeled EV with sodium-ion batteries, demonstrating the industry's commitment to technological advancement. This innovation in battery technology represents a crucial step forward in addressing range anxiety and improving vehicle performance.

The industry structure is undergoing consolidation while maintaining healthy competition. The market remains relatively fragmented, with leading companies collectively accounting for 42.5% of the market share as of 2022, indicating a balanced competitive landscape that fosters innovation while maintaining market stability. Manufacturers are increasingly focusing on product differentiation and value-added services to maintain their competitive edge. This is evident in the development of specialized product lines catering to different consumer segments, from urban commuters to delivery services, with companies like Jiangsu Xinri offering diverse product portfolios ranging from electric bicycles to high-performance electric motorcycles.

China Two Wheeler Market Trends

Government initiatives and strong OEM investments drive rapid drowth in electric vehicle sales in China

• The programs launched by the government to reduce gas emissions caused by vehicle fuels are encouraging consumers to shift to green vehicles. In November 2020, the government of China announced a ban on fossil fuel vehicles by 2035, clearly stating the selling of 100% new energy vehicles under the new energy program. As a result, the demand for electric cars increased. Adopting such regulations enhanced the sales of electric cars and various types of battery packs used in them in China in recent years.
• The government is introducing various schemes and incentives for customers and manufacturers to promote and enhance the demand for electric vehicles in the country. In May 2022, the government announced the reintroduction of the subsidy program to increase the sales of electric vehicles. Moreover, the government will allocate a subsidy of USD 1500 to customers opting for an electric car. Such factors have encouraged customers to invest in electric mobility, which further has increased the sales of electric cars by 2.90% in 2022 over 2021 in China.
• The growing demand for electric vehicles has forced OEMs to plan to increase development and production in the electric vehicle category. In 2021, General Motors announced its plans to raise its spending on electric and autonomous vehicles to USD 20 billion by 2025. The company is expected to launch 20 new electric models by 2023 and aims to sell more than 1 million electric cars a year in China. As a result, these factors are expected to drive the electric vehicle market in China during the 2024-2030 period.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: By Propulsion Type

ICE Segment in China Two Wheeler Market

The Internal Combustion Engine (ICE) segment continues to dominate the China two-wheeler market, commanding approximately 78% market share in 2024. This substantial market presence is attributed to several factors, including the segment's well-established infrastructure, widespread availability of service networks, and consumer familiarity with traditional ICE technology. The segment's strength is particularly evident in rural and semi-urban areas where charging infrastructure for electric alternatives may be limited. ICE motorcycles and scooters maintain their appeal due to their proven reliability, immediate refueling capability, and lower initial purchase costs compared to electric alternatives. Additionally, the extensive dealer network and readily available spare parts ecosystem continue to support the segment's market leadership, despite growing environmental concerns and regulatory pressures.

Hybrid and Electric Segment in China Two Wheeler Market

The hybrid and electric two-wheeler segment is experiencing remarkable growth in China, driven by increasing environmental consciousness and supportive government policies. This segment is witnessing rapid technological advancements in battery technology, leading to improved range and performance capabilities. The growth is further accelerated by expanding charging infrastructure across urban centers and declining battery costs, making electric motorcycles and electric scooters more accessible to a broader consumer base. Manufacturers are introducing innovative features such as smart connectivity options and advanced battery management systems, enhancing the appeal of electric two-wheelers among tech-savvy consumers. The segment's growth is also supported by favorable government incentives, including subsidies and tax benefits, aimed at promoting clean mobility solutions. Urban consumers, in particular, are increasingly adopting electric two-wheelers as a sustainable transportation solution for daily commuting needs.

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