Market Overview
| Study Period | 2017 - 2029 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2029 |
| Market Size (2025) | USD 315.9 Billion |
| Market Size (2029) | USD 347.4 Billion |
| Growth Rate (2025 - 2029) | 2.40% CAGR |
| Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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India Two Wheeler Market Analysis
The India Two Wheeler Market size is estimated at 315.9 billion USD in 2025, and is expected to reach 347.4 billion USD by 2029, growing at a CAGR of 2.40% during the forecast period (2025-2029).
The Indian two-wheeler market demonstrates robust momentum, with total two-wheeler sales reaching 16,999,920 units in 2023, marking a significant increase from 15,862,087 units in 2022. This growth trajectory reflects the industry's resilience and adaptation to changing market dynamics, particularly in urban mobility solutions. The market's evolution is characterized by increasing consumer preference for premium features and advanced technology integration in two-wheelers. Manufacturers are responding to this trend by introducing sophisticated models with enhanced connectivity features, improved safety systems, and superior performance capabilities. The industry's competitive landscape continues to evolve, with established players maintaining their stronghold while new entrants bring innovative solutions to the market.
The two-wheeler industry in India is witnessing a significant transformation in manufacturing and production capabilities, with companies investing heavily in modernizing their facilities and adopting advanced manufacturing technologies. Major manufacturers are expanding their production capacities and implementing smart manufacturing practices to improve efficiency and meet growing demand. The industry has seen notable advancements in supply chain optimization, with companies leveraging digital technologies for better inventory management and distribution. The sector's commitment to innovation is evident in the increasing number of patents and technological developments, particularly in the electric two-wheeler market and connected mobility solutions.
A notable shift in consumer behavior is driving changes in product development and marketing strategies across the industry. The rising preference for premium and lifestyle-oriented two-wheelers is reshaping product portfolios, with manufacturers introducing more sophisticated and feature-rich models. Hero MotoCorp's market leadership, commanding a 31.38% share in 2023, exemplifies the success of strategies that effectively balance innovation with market demands. Companies are increasingly focusing on personalization options and customization capabilities to meet diverse consumer preferences, particularly among younger buyers who prioritize both style and functionality.
The infrastructure supporting the two-wheeler sector in India has seen remarkable development, particularly in terms of sales and service networks. The industry has witnessed substantial growth in charging infrastructure, with the number of charging stations increasing dramatically from 942 in 2021 to 10,900 in 2022. Manufacturers are strengthening their after-sales service networks and implementing digital solutions for enhanced customer experience. The development of smart dealership networks, coupled with the integration of digital platforms for sales and service, is transforming the traditional retail model. Companies are investing in training and development programs to ensure their service networks can handle increasingly sophisticated vehicles, particularly in the electric segment.
India Two Wheeler Market Trends
Government initiatives and stringent norms drive rapid growth in the electric vehicle market in India
- India's electric vehicle (EV) market is in a growth phase, with the government actively formulating strategies to combat pollution. The Fame India scheme, launched in 2015, has played a pivotal role in driving vehicle electrification. Building on its success, Fame Phase 2, active till April 2022, further bolstered EV sales, especially in 2021, with the government offering subsidies like INR 10,000 grants for electric cars with battery capacities up to 15 kWh.
- State governments across India are increasingly incorporating electric buses into their fleets, aiming to transition from internal combustion engine (ICE) buses. This move not only cuts operational costs but also curbs carbon emissions and improves air quality. In a notable move, the Delhi government greenlit the procurement of 300 new low-floor electric (AC) buses in March 2021, with 100 of them hitting the roads in January 2022. These initiatives contributed to a significant 62.58% surge in demand for electric commercial vehicles in India in 2022 over 2021.
- The demand for electric cars has surged in recent times, driven by the government's introduction of stringent norms. In August 2021, the Indian government unveiled the Vehicle Scrappage Policy, targeting the phasing out of polluting and unfit vehicles, irrespective of their age. This policy, set to be implemented by 2024, is steering consumers toward electric cars. Additionally, the government has set an ambitious target of having 30% of all cars in India electrified by 2030. These initiatives are poised to propel electric car sales during the 2024-2030 period in India.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- India's population, driven by factors like a young demographic and improved healthcare, is projected to reach 1,522.77 million by 2030, reflecting steady growth
- The consumer spending for vehicle purchases in Asia-Pacific, as exemplified by India, shows signs of cautious optimism during 2022-2023, following a period of volatility
- India's auto interest rates have shown a consistent downward trend, driven by RBI's measures and evolving lending practices
- Electric vehicle sales in India increased because of the falling battery prices and government incentives
- The numerous tax hikes in the country were expected to increase fuel prices in 2023
- India's GDP per capita is expected to sustain growth, reaching USD 4,205.47 by 2030
- India's journey toward lower inflation sets the stage for economic resilience and investor confidence
- India's electric vehicle charging station market surges with 6,800 slow charging and 4,100 fast charging stations in 2022
- Various new entries and new product launches may accelerate the battery pack market in India
Segment Analysis: By Propulsion Type
ICE Segment in India Two Wheeler Market
The Internal Combustion Engine (ICE) segment continues to dominate the Indian two-wheeler market, commanding approximately 88% two-wheeler 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 the technology. The segment's dominance is further reinforced by the relatively lower initial purchase costs compared to electric two-wheelers, making ICE vehicles more accessible to a broader consumer base. Additionally, the extensive range of product offerings across different price points, from entry-level commuter bikes to premium motorcycles, helps maintain its market leadership. The segment also benefits from the existing robust supply chain network and the presence of numerous established manufacturers who have been consistently introducing new models with improved fuel efficiency and enhanced features to meet evolving consumer preferences.
Hybrid and Electric Vehicles Segment in India Two Wheeler Market
The Hybrid and Electric Vehicles segment is experiencing remarkable growth in the Indian two-wheeler market, with a projected growth rate of approximately 21% during the 2024-2029 period. This impressive growth trajectory is driven by increasing environmental consciousness among consumers, supportive government policies, and continuous improvements in battery technology. The segment's expansion is further accelerated by the rising fuel prices, which are prompting consumers to consider electric alternatives. Manufacturers are responding to this growing demand by introducing new models with improved range, better performance, and advanced features. The development of charging infrastructure across urban areas, coupled with decreasing battery costs, is making electric two-wheelers increasingly attractive to consumers. Additionally, the entry of both established automotive players and new startups into this segment is fostering innovation and competitive pricing, further driving market growth in the two-wheeler industry.
India Two Wheeler Industry Overview
Top Companies in India Two Wheeler Market
The Indian two-wheeler market is characterized by intense competition among established manufacturers who are actively pursuing innovation and expansion strategies. Companies are increasingly focusing on electric vehicle development, with many traditional players launching new EV models and establishing dedicated electric mobility subsidiaries. Operational agility is demonstrated through the rapid adaptation of manufacturing facilities to accommodate both conventional and electric vehicle production lines. Strategic partnerships, particularly in the areas of battery technology and charging infrastructure, have become a key trend as companies seek to strengthen their position in the evolving market. Two-wheeler companies in India are also expanding their distribution networks and after-sales service capabilities while investing in research and development centers to enhance their technological capabilities and maintain competitive advantages.
Domestic Players Dominate Two-Wheeler Manufacturing Landscape
The Indian two-wheeler market exhibits a highly consolidated structure dominated by domestic manufacturers who have established a strong brand presence over decades of operation. These local players, including Hero MotoCorp, TVS Motor, and Bajaj Auto, have successfully maintained their market positions through a deep understanding of local consumer preferences and extensive dealer networks. Global players like Honda and Suzuki operate through their Indian subsidiaries, having established significant manufacturing presence in the country. The market has also witnessed the emergence of new electric vehicle specialists who are challenging traditional manufacturers through innovative product offerings and digital-first approaches.
The industry has seen strategic consolidation through partnerships and joint ventures, particularly in the electric vehicle segment. Traditional manufacturers are acquiring or partnering with technology startups to accelerate their electric mobility initiatives, while international players are forming alliances with local companies to enhance their market presence. The competitive landscape is further evolving with the entry of established automotive conglomerates into the electric two-wheeler segment through newly formed subsidiaries or dedicated business units. The market share of two-wheeler companies in India is significantly influenced by these strategic moves.
Innovation and Sustainability Drive Future Success
For incumbent players to maintain and expand their market share, a focus on product differentiation through technological innovation and enhanced features has become crucial. Companies are investing in connected vehicle technologies, advanced battery management systems, and smart mobility solutions to stay competitive. The development of robust supply chains for electric vehicle components and the establishment of charging infrastructure networks are becoming key determinants of success. Market leaders are also emphasizing the importance of price competitiveness while maintaining product quality to address the value-conscious Indian consumer base.
New entrants and challenger brands can gain ground by focusing on specific market segments or geographical regions before expanding their presence. Success factors include developing strong value propositions through innovative financing options, superior after-sales service, and unique product features. The regulatory environment, particularly regarding emission norms and electric vehicle incentives, is shaping competitive strategies. Companies must also address the growing consumer preference for sustainable mobility solutions while managing the transition from conventional to electric vehicles. Building a strong brand identity and customer trust through transparent communication and reliable product performance will be essential for long-term success in this evolving market. The largest two-wheeler manufacturer in India and other leading two-wheeler company in India entities are prioritizing these strategies to remain at the forefront.
India Two Wheeler Market Leaders
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Bajaj Auto Ltd.
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Hero MotoCorp Ltd.
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Honda Motorcycle & Scooter India Pvt. Ltd.
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Suzuki Motorcycle India Pvt. Ltd.
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TVS Motor Company Limited
- *Disclaimer: Major Players sorted in no particular order
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India Two Wheeler Market News
- August 2023: Ola Electric launched S1X for INR 79,999. Ola S1X will be offered in two battery capacities, 2-kWh and 3-kWh. The 2-kWh variant will have a range of 91 km, while the 3-kWh will have a 151 km range. The scooter has a 3.5-inch segmented display, and the physical key unlocks and comes Without smart connectivity.
- August 2023: Mahindra & Mahindra Ltd announced that its board of directors approved the scheme of merger by absorption of Mahindra Heavy Engines Limited (MHEL) and Mahindra Two Wheelers Limited (MTWL) and Trringo.com Limited (TCL), wholly owned subsidiaries of the company, with the company and their respective shareholders.
- July 2023: Okinawa Autotech launched the new and advanced version of its ‘OKHI-90' electric scooter with an AIS-156 amendment 3 compliant battery pack, next-gen motor, and improved technology features.
Free With This Report
For the Vehicle Hub report, we provide an extensive collection of over 150 free charts, delivering detailed insights on regional and country-level dynamics within the vehicle industry. This encompasses in-depth analyses of vehicle registrations, usage patterns in both consumer and business segments, and evaluations of various vehicle configurations and body types. The report delves into critical industrial trends such as shifts in vehicle production and distribution centers, changes in vehicle ownership costs, and advancements in automotive technologies. Further, our report offers comprehensive market segmentation by vehicle type, body type, propulsion, and fuel categories, providing a nuanced understanding of the market landscape. It also explores the adoption rate of new technologies, the impact of regulatory changes, and the influence of economic factors on the vehicle market. We include a thorough examination of key industry players, regulatory frameworks, and market size in terms of both revenue and unit sales, leading to strategic projections and forecasts that account for emerging trends and potential shifts in the industry.
List of Tables & Figures
- Figure 1:
- POPULATION TRENDS, VOLUME IN UNITS, INDIA, 2017 - 2030
- Figure 2:
- GDP PER CAPITA AT CURRENT PRICES, VALUE IN USD, INDIA, 2017 - 2030
- Figure 3:
- AVERAGE CONSUMER SPENDING PER CAPITA ON PURCHASE OF VEHICLES, VALUE IN USD, INDIA, 2017 - 2030
- Figure 4:
- INFLATION RATE AT AVERAGE CONSUMER PRICES, PERCENTAGE CHANGE, INDIA, 2017 - 2030
- Figure 5:
- AUTO LOAN INTEREST RATES, PERCENTAGE, INDIA, 2017 - 2022
- Figure 6:
- ELECTRIC VEHICLE MARKET PENETRATION RATE, BY VEHICLE TYPE, PERCENTAGE OF VOLUME, INDIA, 2017 - 2030
- Figure 7:
- CHARGING STATION DEPLOYMENT, BY TYPE, VOLUME IN UNITS, INDIA, 2017 - 2022
- Figure 8:
- AVERAGE LITHIUM-ION BATTERY PACK PRICE, VALUE IN USD, INDIA, 2017 - 2030
- Figure 9:
- ANNOUNCEMENT OF NEW XEV MODELS, BY VEHICLE TYPE, VOLUME IN UNITS, INDIA, 2023 - 2027
- Figure 10:
- FUEL PRICE, BY FUEL TYPE, USD/LITER, INDIA, 2017 - 2022
- Figure 11:
- INDIA TWO WHEELER MARKET, VOLUME IN UNITS, 2017 - 2030
- Figure 12:
- INDIA TWO WHEELER MARKET, VALUE IN USD, 2017 - 2030
- Figure 13:
- INDIA TWO WHEELER MARKET, BY PROPULSION TYPE, BY VOLUME IN UNITS, 2017 - 2030
- Figure 14:
- INDIA TWO WHEELER MARKET, BY PROPULSION TYPE, BY VALUE IN USD, 2017 - 2030
- Figure 15:
- INDIA TWO WHEELER MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
- Figure 16:
- INDIA TWO WHEELER MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
- Figure 17:
- INDIA TWO WHEELER MARKET, BY HYBRID AND ELECTRIC VEHICLES, BY VOLUME IN UNITS, 2017 - 2030
- Figure 18:
- INDIA TWO WHEELER MARKET, BY HYBRID AND ELECTRIC VEHICLES, BY VALUE IN USD, 2017 - 2030
- Figure 19:
- INDIA TWO WHEELER MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
- Figure 20:
- INDIA TWO WHEELER MARKET, BY ICE, BY VOLUME IN UNITS, 2017 - 2030
- Figure 21:
- INDIA TWO WHEELER MARKET, BY ICE, BY VALUE IN USD, 2017 - 2030
- Figure 22:
- INDIA TWO WHEELER MARKET MARKET, SHARE(%), BY PROPULSION TYPE, 2017 - 2030
- Figure 23:
- INDIA TWO WHEELER MARKET, MOST ACTIVE COMPANIES, BY NUMBER OF STRATEGIC MOVES, 2017 - 2030
- Figure 24:
- INDIA TWO WHEELER MARKET, MOST ADOPTED STRATEGIES, 2017 - 2030
- Figure 25:
- INDIA TWO WHEELER MARKET SHARE(%), BY MAJOR PLAYERS
India Two Wheeler Industry Segmentation
Hybrid and Electric Vehicles, ICE are covered as segments by Propulsion Type.| Propulsion Type | Hybrid and Electric Vehicles |
| ICE |
Propulsion Type
| Hybrid and Electric Vehicles |
| ICE |
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Market Definition
- Vehicle Type - The category covers motorized two-wheelers.
- Vehicle Body Type - This includes Scooters and Motorcycles, while Kick-scooters and Bicycles are excluded.
- Fuel Category - Coverage extends to vehicles powered by Internal Combustion Engines (ICE) and electric propulsion systems.
| Keyword | Definition |
|---|---|
| Electric Vehicle (EV) | A vehicle which uses one or more electric motors for propulsion. Includes cars, buses, and trucks. This term includes all-electric vehicles or battery electric vehicles and plug-in hybrid electric vehicles. |
| BEV | A BEV relies completely on a battery and a motor for propulsion. The battery in the vehicle must be charged by plugging it into an outlet or public charging station. BEVs do not have an ICE and hence are pollution-free. They have a low cost of operation and reduced engine noise as compared to conventional fuel engines. However, they have a shorter range and higher prices than their equivalent gasoline models. |
| PEV | A plug-in electric vehicle is an electric vehicle that can be externally charged and generally includes all-electric vehicles as well as plug-in hybrids. |
| Plug-in Hybrid EV | A vehicle that can be powered either by an ICE or an electric motor. In contrast to normal hybrid EVs, they can be charged externally. |
| Internal combustion engine | An engine in which the burning of fuels occurs in a confined space called a combustion chamber. Usually run with gasoline/petrol or diesel. |
| Hybrid EV | A vehicle powered by an ICE in combination with one or more electric motors that use energy stored in batteries. These are continually recharged with power from the ICE and regenerative braking. |
| Commercial Vehicles | Commercial vehicles are motorized road vehicles designed for transporting people or goods. The category includes light commercial vehicles (LCVs) and medium and heavy-duty vehicles (M&HCV). |
| Passenger Vehicles | Passenger cars are electric motor– or engine-driven vehicles with at least four wheels. These vehicles are used for the transport of passengers and comprise no more than eight seats in addition to the driver’s seat. |
| Light Commercial Vehicles | Commercial vehicles that weigh less than 6,000 lb (Class 1) and in the range of 6,001–10,000 lb (Class 2) are covered under this category. |
| M&HDT | Commercial vehicles that weigh in the range of 10,001–14,000 lb (Class 3), 14,001–16,000 lb (Class 4), 16,001–19,500 lb (Class 5), 19,501–26,000 lb (Class 6), 26,001–33,000 lb (Class 7) and above 33,001 lb (Class 8) are covered under this category. |
| Bus | A mode of transportation that typically refers to a large vehicle designed to carry passengers over long distances. This includes transit bus, school bus, shuttle bus, and trolleybuses. |
| Diesel | It includes vehicles that use diesel as their primary fuel. A diesel engine vehicle have a compression-ignited injection system rather than the spark-ignited system used by most gasoline vehicles. In such vehicles, fuel is injected into the combustion chamber and ignited by the high temperature achieved when gas is greatly compressed. |
| Gasoline | It includes vehicles that use gas/petrol as their primary fuel. A gasoline car typically uses a spark-ignited internal combustion engine. In such vehicles, fuel is injected into either the intake manifold or the combustion chamber, where it is combined with air, and the air/fuel mixture is ignited by the spark from a spark plug. |
| LPG | It includes vehicles that use LPG as their primary fuel. Both dedicated and bi-fuel LPG vehicles are considered under the scope of the study. |
| CNG | It includes vehicles that use CNG as their primary fuel. These are vehicles that operate like gasoline-powered vehicles with spark-ignited internal combustion engines. |
| HEV | All the electric vehicles that use batteries and an internal combustion engine (ICE) as their primary source for propulsion are considered under this category. HEVs generally use a diesel-electric powertrain and are also known as hybrid diesel-electric vehicles. An HEV converts the vehicle momentum (kinetic energy) into electricity that recharges the battery when the vehicle slows down or stops. The battery of HEV cannot be charged using plug-in devices. |
| PHEV | PHEVs are powered by a battery as well as an ICE. The battery can be charged through either regenerative breaking using the ICE or by plugging into some external charging source. PHEVs have a better range than BEVs but are comparatively less eco-friendly. |
| Hatchback | These are compact-sized cars with a hatch-type door provided at the rear end. |
| Sedan | These are usually two- or four-door passenger cars, with a separate area provided at the rear end for luggage. |
| SUV | Popularly known as SUVs, these cars come with four-wheel drive, and usually have high ground clearance. These cars can also be used as off-road vehicles. |
| MPV | These are multi-purpose vehicles (also called minivans) designed to carry a larger number of passengers. They carry between five and seven people and have room for luggage too. They are usually taller than the average family saloon car, to provide greater headroom and ease of access, and they are usually front-wheel drive. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all its reports.
- Step-1: Identify Key Variables: To build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built based on these variables.
- Step-2: Build a Market Model: Market-size estimations for the historical and forecast years have been provided in revenue and volume terms. Market revenue is calculated by multiplying the sales volume with their respective average selling price (ASP). While estimating ASP factors like average inflation, market demand shift, manufacturing cost, technological advancement, and varying consumer preference, among others have been taken into account.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms.
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