India Two Wheeler Market (2025-2031) | Size, Outlook, Forecast, Companies, Revenue, Trends, Share, Growth, Value, Industry & Analysis

India Two Wheeler Market Highlights

Report Name	India Two Wheeler Market
Forecast period	2025-2031
CAGR	6.5%
Growing Sector	Automobile

Topics Covered in the India Two Wheeler Market Report

India Two Wheeler Market report thoroughly covers the market by Vehicle Types and by Engine Capacity. The market report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.

India Two Wheeler Market Synopsis

India Two Wheeler Market is one of the largest in the world, driven by a combination of rising population, urbanization, and increasing disposable incomes. Two-wheelers, which include motorcycles, scooters, and mopeds, are the preferred mode of transportation for millions of Indians due to their affordability, fuel efficiency, and ability to maneuver through congested city streets. The market is characterized by a range of domestic and international manufacturers offering products across various price points and performance segments. Factors such as growing demand in rural areas, advancements in electric vehicle technology, and supportive government policies are expected to further influence this sector. With a strong customer base and evolving consumer preferences, the India two-wheeler market continues to be a significant contributor to the country's automotive industry.

According to 6Wresearch, the India Two Wheeler Market is anticipated to grow at a CAGR of 6.5% during the forecast period 2025-2031. The growth of the India Two Wheeler Market is primarily driven by several key factors. Increasing urbanization and the expanding middle-class population have significantly boosted the demand for affordable and efficient transportation options, making two-wheelers a preferred choice. Additionally, the rise in disposable income among consumers has further improved the purchasing capacity, thereby augmenting market growth. Government initiatives, such as subsidies and support for electric two-wheeler adoption, have also played a critical role in encouraging innovation and transition toward environmentally friendly mobility solutions. Furthermore, the growing penetration of two-wheeler financing and easy loan schemes contribute to increasing accessibility for consumers across various economic segment.

Despite the promising growth potential, the India Two Wheeler Market faces several challenges. The fluctuating cost of raw materials, particularly steel and rubber, poses a significant challenge to maintaining competitive pricing and profitability. Environmental concerns, coupled with stringent regulations on emissions, require manufacturers to invest heavily in research and development of compliant technologies, increasing production costs. Additionally, the rapid pace of urbanization has led to traffic congestion in major cities, limiting the utility of two-wheelers in overcrowded areas. Lastly, the ongoing global supply chain disruptions and semiconductor shortages have impacted the timely production and delivery of two-wheelers, thus creating uncertainty in the market.

India Two Wheeler Market Trends

The two-wheeler market in India has experienced significant growth over the years, driven by factors such as rising disposable incomes, growing urbanization, and increasing demand for affordable personal mobility solutions. The market is dominated by motorcycles and scooters, which cater to a wide demographic, including commuters, rural users, and young enthusiasts. A notable trend in this sector includes the shift towards electric two-wheelers, spurred by government incentives, environmental awareness, and advancements in battery technology. Additionally, the penetration of two-wheelers into rural areas has expanded due to improved road infrastructure and the affordability of entry-level bikes.

With the Indian government's push towards electric mobility and the growing concern for environmental sustainability, the demand for electric two-wheelers is expected to witness significant growth in the coming years. Electric scooters, in particular, are gaining popularity due to their low maintenance costs and zero emission nature. Some major players have already entered this segment with new models and investments in charging infrastructure. The adoption of these vehicles is also driven by increasing fuel prices and rising awareness about reducing carbon footprint.

Another trend that has emerged in recent years is the preference for stylish and feature-rich motorcycles among young consumers. This shift can be attributed to a change in perception towards two-wheelers as a luxury item rather than just a means of transportation. As a result, manufacturers are focusing on introducing innovative designs and features to attract this demographic. Moreover, the rising demand for ride-sharing services has also contributed to the growth of two-wheeler sales in urban areas. With increasing traffic congestion and limited parking spaces, motorcycles and scooters have become a convenient and cost-effective mode of transport for short commutes. This trend is expected to continue with the emergence of new players in the ride-sharing market.

Investment Opportunities in the India Two Wheeler Market

India Two Wheeler Market presents attractive investment prospects for domestic and international investors. With the government actively promoting electric mobility through subsidies and policies under initiatives like FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), the electrification of two-wheelers is a prime area for investment. Startups leveraging cutting-edge technology and sustainable solutions are gaining traction, presenting opportunities for venture capital and private equity. Furthermore, the vast rural market provides avenues for growth as demand for cost-effective and durable two-wheelers increases. Collaborations between technology firms and traditional manufacturers are also opening doors for innovation and expansion. With robust domestic demand, export potential, and favorable regulatory frameworks, the two-wheeler market in India remains a lucrative sector for investors looking to tap into the mobility segment.

Leading Players in the India Two Wheeler Market

India Two Wheeler Market Share is dominated by leading players like Hero MotoCorp, the largest two-wheeler manufacturer in India and a global leader with a strong brand reputation and extensive distribution network. Honda Motorcycle & Scooter India (HMSI) excels in the scooter segment with its highly popular and fuel-efficient Activa series. Bajaj Auto is known for its innovative, performance-oriented motorcycles in the commuter and sports categories, with a strong presence in exports. TVS Motor Company stands out with its diverse, affordable range of two-wheelers that cater to various consumer needs, focusing on technology and quality. Royal Enfield, a subsidiary of Eicher Motors, is synonymous with mid-segment retro motorcycles and enjoys a loyal consumer base both in India and globally. These manufacturers continue to drive the industry's growth through innovation and expanding market strategies.

Government Regulations

India Two Wheeler Market is significantly influenced by government regulations aimed at improving safety, reducing emissions, and encouraging sustainable transportation. The implementation of Bharat Stage (BS) emission standards has been a pivotal measure, with the latest upgrade to BS6 designed to curb vehicular pollution. Additionally, safety mandates such as the compulsory inclusion of Anti-Lock Braking Systems (ABS) or Combined Braking Systems (CBS) for specific engine capacities have enhanced rider protection. The government is also promoting the adoption of electric two-wheelers through initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, which provides incentives to accelerate the shift towards electric mobility. These regulations, while challenging for manufacturers, are shaping a more sustainable and safer future for the sector.

Future Insights of the India Two Wheeler Market

The future of the India Two Wheeler Industry is poised for significant growth, driven by multiple factors. Rising disposable incomes, urbanization, and an increasing demand for affordable personal mobility solutions will continue to fuel market expansion. Additionally, the push for cleaner energy and government incentives for electric vehicles (EVs) are expected to accelerate the adoption of electric two-wheelers, reshaping the market landscape. Technological advancements, such as the integration of smart features and improved battery technology, will also play a critical role in driving consumer interest. Overall, the market is set to experience robust development, aligning with both economic growth and sustainability objectives.

Market Segmentation Analysis

The report offers a comprehensive study of the subsequent market segments and their leading categories.

Motorcycles to Dominate the Market - By Vehicle Type

According to Saurabh, Senior Research Analyst, 6Wresearch, motorcycles hold the largest market share in India two-wheeler market, driven by their affordability, fuel efficiency, and adaptability to both urban and rural conditions. Scooters also play a significant role, particularly among urban users, thanks to their ease of use, storage options, and suitability for short commutes. Mopeds continue to cater to a niche rural audience, valued for their simplicity and low operating costs.

Up to 125cc Engine Segment to Dominate the Market - By Engine Capacity

Two-wheelers with engine capacities up to 125cc dominate the market due to their affordability, fuel efficiency, and lower maintenance costs, making them a preferred choice for daily commuters and budget-conscious consumers. The 126-250cc segment is gradually gaining traction among young riders and professionals seeking a blend of performance and style. Meanwhile, the 251-500cc segment appeals to premium users and biking enthusiasts, offering superior performance and advanced features. Two-wheelers with engine capacities above 500cc remain a niche, targeting high-end consumers and motorcycle aficionados looking for premium builds and cutting-edge technology.

Key Attractiveness of the Report

• 10 Years of Market Numbers.
• Historical Data Starting from 2021 to 2024
• Base Year: 2024
• Forecast Data until 2031.
• Key Performance Indicators Impacting the market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• India Two Wheeler Market Outlook
• Market Size of India Two Wheeler Market, 2024
• Forecast of India Two Wheeler Market, 2031
• Historical Data and Forecast of India Two Wheeler Revenues & Volume for the Period 2024 - 2031
• India Two Wheeler Market Trend Evolution
• India Two Wheeler Market Drivers and Challenges
• India Two Wheeler Price Trends
• India Two Wheeler Porter's Five Forces
• India Two Wheeler Industry Life Cycle
• Historical Data and Forecast of India Two Wheeler Market Revenues & Volume By Vehicle Type for the Period 2021 - 2031
• Historical Data and Forecast of India Two Wheeler Market Revenues & Volume By Motorcycle for the Period 2021 - 2031
• Historical Data and Forecast of India Two Wheeler Market Revenues & Volume By Scooter/Moped for the Period 2021 - 2031
• Historical Data and Forecast of India Two Wheeler Market Revenues & Volume By Engine Capacity for the Period 2021 - 2031
• Historical Data and Forecast of India Two Wheeler Market Revenues & Volume By Up to 125cc for the Period 2021 - 2031
• Historical Data and Forecast of India Two Wheeler Market Revenues & Volume By 126-250cc for the Period 2021 - 2031
• Historical Data and Forecast of India Two Wheeler Market Revenues & Volume By 251-500cc for the Period 2021 - 2031
• Historical Data and Forecast of India Two Wheeler Market Revenues & Volume By Above 500cc for the Period 2021 - 2031
• India Two Wheeler Import Export Trade Statistics
• Market Opportunity Assessment By Vehicle Type
• Market Opportunity Assessment By Engine Capacity
• India Two Wheeler Top Companies Market Share
• India Two Wheeler Competitive Benchmarking By Technical and Operational Parameters
• India Two Wheeler Company Profiles
• India Two Wheeler Key Strategic Recommendations

Market Covered

The report offers a comprehensive study of the subsequent market segments:

By Vehicle Type

• Motorcycle
• Scooter/Moped

By Engine Capacity

• Up To 125cc
• 126-250cc
• 251-500cc
• Above 500cc