Two-Wheeler Industry Growth Overview

India's two-wheeler industry experienced a significant growth of 15-17% in 2024, driven by internal combustion engine (ICE) motorcycles, ICE scooters, and electric vehicles (EVs). The ICE motorcycle segment, holding a 62% market share, grew by 13-15%, while the ICE scooter segment, with a 30% share, saw an 18-20% increase. Notably, EV retail sales, contributing around 6% in 2024, surged by approximately 33%, highlighting their growing importance.

Future Projections and Market Influences

Looking ahead, the industry is anticipated to grow modestly by 2-4% in 2025, supported by a robust macroeconomic environment. Factors such as projected GDP growth, increased private final consumption expenditure, and resilient rural demand are expected to bolster this growth. However, potential challenges include a possible 1-3% increase in vehicle prices due to new regulations, which could impact the industry's momentum.

Electric Vehicles: A Rising Star

The electric two-wheeler segment has shown remarkable resilience, with sales surging despite lower subsidies. The penetration of EVs in the two-wheeler industry has increased to about 6%, up from 4.9% in 2023. This growth is attributed to the entry of new market participants, expansion of product portfolios, and the introduction of competitively priced, feature-rich EVs.

Conclusion

The two-wheeler industry is at a pivotal point, with electrification and premiumisation trends shaping its future. While challenges remain, the industry's adaptability and innovation continue to drive its growth and evolution.