Current status and future outlook of the Indian two-wheeler industry
India plays a significant role in the global two-wheeler market. In recent years, with rapid economic growth and accelerating urbanization, India’s two-wheeler industry has continued to thrive.
Data shows that the sales of two-wheelers in India reached 4.2 million units in the fiscal year 2024, and the market is expected to maintain strong performance in fiscal year 2025, with further growth anticipated. This article will provide a detailed analysis of the current status of the Indian two-wheeler industry (explore the top 10 electric two wheeler manufacturers in India)and explore future trends and challenges.
Table of Contents
Market overview
Sales trends and market structure
According to forecasts from Icra (International Credit Rating Agency), the Indian two-wheeler market (find the top 10 two wheeler lithium battery manufacturers in China) is expected to continue its strong growth in fiscal year 2025, with estimated sales growth of 6-9%. In fiscal year 2024, the two-wheeler industry achieved approximately 10% year-on-year growth, primarily driven by robust demand in rural areas. Behind this market growth are increasing disposable incomes and supportive government policies.
In terms of market structure, electric two-wheelers (E2W) are gradually becoming the dominant force. Sales of electric two-wheelers reached 1.21 million units in 2024, accounting for over 60% of total sales, with a year-on-year growth of 30.7%.
Market concentration has further intensified, with the top 15 brands holding a market share of 96.3%. Brands such as Ola Electric, Bajaj, and TVS have become market leaders by offering high-cost-performance models that attract a large number of consumers.
Policy environment and market incentives
Government support for electric vehicles is one of the key factors driving the rapid development of the two-wheeler market. The Indian government has launched the FAME II program, providing tax reductions and subsidy policies to lower the purchase threshold for consumers.
Additionally, the implementation of strict carbon emission standards expected by 2027 will encourage manufacturers to accelerate the transition to electric vehicles. These policies offer consumers more purchasing options while promoting the overall healthy development of the market.
Segment market analysis
Electric two-wheeler market
The electric two-wheeler market serves as a growth engine, continuously attracting investment and attention. In 2024, the penetration rate of electric two-wheelers increased from 5.1% to 6.2%. Ola Electric maintains its leading position in the market, bolstered by its cost-effectiveness and rapid charging technology. Other brands like Bajaj and TVS have successfully captured market share through product differentiation and technological innovation, driving overall market progress.
However, the electric two-wheeler industry also faces numerous challenges. First and foremost, inadequate charging infrastructure remains a significant barrier to widespread EV adoption. Currently, charging stations are concentrated in major cities, while rural areas lack sufficient charging facilities. Additionally, reliance on imports for critical components such as batteries and chips poses supply chain risks that create pressure on businesses.
Fuel-Based two-wheeler market
Despite the significant growth of electric two-wheelers, the fuel-based two-wheeler market still occupies a considerable share. Traditional fuel-based two-wheelers continue to be favored by consumers, especially in rural areas. With economic improvements and increased transportation needs, fuel two-wheeler sales remain steady. However, the future development of the market will inevitably shift towards electrification and intelligence.
Future development trends
Market potential and growth drivers
Looking ahead, Icra expresses cautious optimism about market prospects, predicting that two-wheeler sales in India will grow by 4-7% in fiscal year 2026. This growth potential is primarily derived from several factors:
Increasing Disposable Incomes: As the economy continues to grow and individual incomes rise, consumer demand for two-wheelers is expected to increase further.
New Model Launches and Technological Innovation: Manufacturers are continuously launching new models to meet the increasingly diverse demands of consumers. The arrival of high-performance electric two-wheelers will attract more consumer attention.
Continued Government Support Policies: The government will maintain its push for electric two-wheelers, introducing more incentive policies to facilitate the development of electric vehicles.
Changes in competitive landscape
From the perspective of market competition structure, India’s two-wheeler market is evolving towards diversification. Led by Ola Electric, competition is gradually shifting from a landscape dominated by a single entity to a more pluralistic environment. Established brands and emerging small enterprises are all actively vying for market share. High cost-performance ratios and quality service will be key to future competition.
Challenges and response strategies
Although India’s two-wheeler market exhibits strong growth momentum, it still faces several challenges.
Inadequate charging infrastructure
Particularly in rural areas, the sparse distribution of charging piles (explore the top 10 charging pile company in China) limits the proliferation of electric vehicles. Both businesses and the government need to invest more in the development and construction of charging networks.
Cost pressures and consumer sensitivity
In the current economic environment, consumers are highly sensitive to prices. Lowering purchase costs and improving cost-performance ratios are vital strategies for market players.
Supply chain risks
Dependence on imports for core components creates instability in the supply chain. Companies should actively explore avenues for localization and self-sufficiency to mitigate this risk.
Conclusion
In summary, the Indian two-wheeler market, driven by government policy and market demand, demonstrates significant development potential. Despite facing certain challenges, the increasing consumer demand and government support are expected to continue expanding the market and facilitate the transition to electric vehicles.
With technological advancements and shifts in consumer preferences, the future Indian two-wheeler market will innovate and evolve through competition, positioning itself as an important model for the global transition to electric mobility.
Hello, I'm Chase. I specialize in providing in-depth insights and the latest updates on electric two- and three-wheeler battery swap systems, from lithium battery technology to intelligent swapping solutions. My goal is to break down complex technical concepts into clear, accessible content, helping businesses and individuals navigate the evolving landscape of electric mobility and sustainable energy.
Current status and future outlook of the Indian two-wheeler industry
India plays a significant role in the global two-wheeler market. In recent years, with rapid economic growth and accelerating urbanization, India’s two-wheeler industry has continued to thrive.
Data shows that the sales of two-wheelers in India reached 4.2 million units in the fiscal year 2024, and the market is expected to maintain strong performance in fiscal year 2025, with further growth anticipated. This article will provide a detailed analysis of the current status of the Indian two-wheeler industry (explore the top 10 electric two wheeler manufacturers in India)and explore future trends and challenges.
Market overview
Sales trends and market structure
According to forecasts from Icra (International Credit Rating Agency), the Indian two-wheeler market (find the top 10 two wheeler lithium battery manufacturers in China) is expected to continue its strong growth in fiscal year 2025, with estimated sales growth of 6-9%. In fiscal year 2024, the two-wheeler industry achieved approximately 10% year-on-year growth, primarily driven by robust demand in rural areas. Behind this market growth are increasing disposable incomes and supportive government policies.
In terms of market structure, electric two-wheelers (E2W) are gradually becoming the dominant force. Sales of electric two-wheelers reached 1.21 million units in 2024, accounting for over 60% of total sales, with a year-on-year growth of 30.7%.
Market concentration has further intensified, with the top 15 brands holding a market share of 96.3%. Brands such as Ola Electric, Bajaj, and TVS have become market leaders by offering high-cost-performance models that attract a large number of consumers.
Policy environment and market incentives
Segment market analysis
Electric two-wheeler market
The electric two-wheeler market serves as a growth engine, continuously attracting investment and attention. In 2024, the penetration rate of electric two-wheelers increased from 5.1% to 6.2%. Ola Electric maintains its leading position in the market, bolstered by its cost-effectiveness and rapid charging technology. Other brands like Bajaj and TVS have successfully captured market share through product differentiation and technological innovation, driving overall market progress.
However, the electric two-wheeler industry also faces numerous challenges. First and foremost, inadequate charging infrastructure remains a significant barrier to widespread EV adoption. Currently, charging stations are concentrated in major cities, while rural areas lack sufficient charging facilities. Additionally, reliance on imports for critical components such as batteries and chips poses supply chain risks that create pressure on businesses.
Fuel-Based two-wheeler market
Despite the significant growth of electric two-wheelers, the fuel-based two-wheeler market still occupies a considerable share. Traditional fuel-based two-wheelers continue to be favored by consumers, especially in rural areas. With economic improvements and increased transportation needs, fuel two-wheeler sales remain steady. However, the future development of the market will inevitably shift towards electrification and intelligence.
Future development trends
Market potential and growth drivers
Looking ahead, Icra expresses cautious optimism about market prospects, predicting that two-wheeler sales in India will grow by 4-7% in fiscal year 2026. This growth potential is primarily derived from several factors:
Changes in competitive landscape
From the perspective of market competition structure, India’s two-wheeler market is evolving towards diversification. Led by Ola Electric, competition is gradually shifting from a landscape dominated by a single entity to a more pluralistic environment. Established brands and emerging small enterprises are all actively vying for market share. High cost-performance ratios and quality service will be key to future competition.
Challenges and response strategies
Inadequate charging infrastructure
Cost pressures and consumer sensitivity
Supply chain risks
Dependence on imports for core components creates instability in the supply chain. Companies should actively explore avenues for localization and self-sufficiency to mitigate this risk.
Conclusion