# India Two Wheeler Market

> India Two Wheeler Market Research Report Information By Engine Type (Electric, Hybrid and Electric Vehicles, and ICE), – India Market Forecast Till 2035

- **Forecast Period:** 2025 - 2035
- **CAGR:** 3.5%
- **2024:** $ 335.07 Billion
- **2025:** $ 346.81 Billion
- **2035:** $ 489.3 Billion
- **Key Players:** Hero MotoCorp (IN), Bajaj Auto (IN), TVS Motor Company (IN), Honda Motorcycle and Scooter India (IN), Royal Enfield (IN), Suzuki Motorcycle India (IN), Yamaha Motor India (IN), KTM India (AT), Mahindra Two Wheelers (IN)

**Report ID:** MRFR/AT/19850-HCR · **Pages:** 128 · **Author:** Triveni Bhoyar & Garvit Vyas · **Last Updated:** April 24, 2026

**URL:** https://www.marketresearchfuture.com/reports/india-two-wheeler-market-21400

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## Market Summary

## **India Two Wheeler Market Overview:**

As per MRFR analysis, the India two-wheeler Market Size was estimated at  335.07 (USD Billion) in 2024. The India two-wheeler Market Industry is expected to grow from  346.81 (USD Billion) in 2025 to  472.75 (USD Billion) till 2034, at a CAGR (growth rate) is expected to be around 3.50% during the forecast period (2025 - 2034). Rising urbanization and increasing demand for affordable and fuel-efficient transportation are the main market drivers anticipated to propel the Two Wheeler market in India.

In the report published in the year 2024, Kinatic E-Bikes India LLP entered the Northeastern market with the formal introduction of its two-wheeler electric vehicles in Assam. A thrilled company has now launched its wow electric vehicles to the people of the northeastern region after its introduction in Assam on Friday.

Source: Secondary Research, Primary Research, _Market Research Future_ Database and Analyst Review

## **India Two Wheeler Market Trends**

### **The electric two-wheelers revolution is driving the market growth**

As environmental concerns and the need for sustainable transportation solutions become more prominent, the market is witnessing a notable shift towards electric mobility. Electric two-wheelers, including electric scooters and motorcycles, have gained popularity due to their eco-friendly nature, reduced operational costs, and government incentives promoting electric vehicle adoption. Electric two-wheelers address the growing environmental consciousness among consumers. With zero tailpipe emissions, they contribute to lowering air pollution levels, especially in urban areas where two-wheelers are a primary mode of transportation.

Governments worldwide are implementing policies and providing subsidies to encourage the adoption of electric vehicles, contributing to the growth of the electric two-wheeler market. This trend aligns with global efforts to reduce carbon footprints and combat climate change. Moreover, advancements in battery technology have led to improvements in the range, charging time, and overall performance of electric two-wheelers. This has alleviated concerns related to limited range and accessibility, making electric two-wheelers a more viable option for daily commuting.

As battery technology continues to evolve, the electric two-wheeler market is expected to witness further expansion, offering consumers a cleaner and more sustainable alternative to traditional internal combustion engine vehicles.

Another prominent trend in the two-wheeler market is the integration of connectivity and smart features in motorcycles and scooters. With the rapid evolution of technology, two-wheeler manufacturers are incorporating smart features to enhance the overall riding experience, safety, and convenience for users. Connectivity features such as GPS navigation, smartphone integration, and vehicle-to-vehicle communication are becoming increasingly common.

The integration of connectivity features not only enhances the functionality of two-wheelers but also improves safety. GPS navigation systems assist riders in finding the best routes, while real-time traffic updates help in avoiding congestion. Additionally, smartphone connectivity allows riders to receive calls, messages, and notifications without taking their hands off the handlebars, promoting safer riding practices. Furthermore, smart features contribute to vehicle security. Anti-theft systems, geo-fencing, and remote tracking enable owners to monitor and secure their two-wheelers more effectively.

In the event of theft, GPS tracking can aid in recovering the stolen vehicle, providing an additional layer of protection for owners.

## **India Two Wheeler Market Segment Insights:**

### **Two Wheeler Engine Type Insights**

The India Two Wheeler market segmentation, based on engine type, includes electric, hybrid and electric vehicles, and ICE. The dominating segment in the two-wheeler market is the "Electric" category. The increasing global emphasis on sustainability and the growing awareness of environmental issues has propelled the adoption of electric vehicles (EVs). Electric two-wheelers, including electric scooters and motorcycles, are gaining prominence due to their zero-emission nature, reduced operating costs, and advancements in battery technology.

## **Figure 1: India Two Wheeler Market, by Engine Type, 2023 & 2032 (USD Billion)**

**_Source: Secondary Research, Primary Research, MRFR Database and Analyst Review_**

### **Two Wheeler Country Insights**

The Two Wheeler Market in India has experienced significant growth due to a combination of socio-economic factors and the country's unique transportation landscape. The increasing urbanization and population density in Indian cities have fueled the demand for affordable and efficient personal transportation. Two-wheelers, particularly scooters and motorcycles, provide a convenient and maneuverable solution for navigating congested urban streets. Moreover, economic growth and rising disposable incomes have expanded the middle-class population, driving consumer aspirations for personal mobility. Two-wheelers, being more cost-effective than four-wheelers, have become a popular choice for a vast segment of the population.

Additionally, the ease of maintenance and fuel efficiency further contribute to their popularity, making them accessible to a wide demographic range.

Furthermore, government policies and incentives, such as favorable taxation and subsidies, have encouraged the growth of the two-wheeler industry. The introduction of financing options has made these vehicles more affordable for a larger section of the population. As a result, the Two Wheeler Market in India continues to grow, meeting the diverse transportation needs of a rapidly expanding and economically dynamic population.

## **Two Wheeler Key Market Players & Competitive Insights**

Leading market players focus on introducing new and innovative models with advanced features to attract a wider consumer base. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new Engine Type launches, contractual agreements, mergers and acquisitions, cost competitiveness, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Two Wheeler industry must offer cost-effective items.

Major players in the Two Wheeler market are attempting to increase market demand by investing in research and development operations, including Ampere, Ather Energy Pvt. Ltd., Bajaj Auto Ltd., BMW India Private Limited, Ducati India Private Limited, Hero MotoCorp Ltd., Honda Motorcycle and Scooter India Pvt. Ltd, Lohia Auto Industries, Okinawa Autotech Pvt. Ltd, Ola Electric Mobility Pvt Ltd, Royal Enfield Ltd. India, Suzuki Motorcycle India Pvt. Ltd., Triumph Motorcycles (India) Private Limited, TVS Motor Company Limited, and Yamaha Motor India Pvt. Ltd..

### **Key Companies in the India Two Wheeler market include**

### **India Two Wheeler Industry Developments**

**Ola Electric Mobility Pvt Ltd**

**January 2025:** Ola Electric launched its new electric scooter model, the Ola S1 Pro+, featuring enhanced battery life and advanced smart features.

**February 2025:** Ola Electric announced a partnership with local battery manufacturers to boost production capacity for their electric scooters.

**March 2025:** The company reported a 50% increase in sales compared to the previous quarter, attributed to the successful launch of the new model.

**Royal Enfield Ltd. India**

**January 2025:** Royal Enfield unveiled its latest motorcycle, the Classic 350X, which features modern technology while retaining classic design elements.

**February 2025:** The company announced plans to expand its dealership network in rural areas to increase accessibility.

**March 2025:** Royal Enfield reported a significant rise in exports, with a 30% increase in sales in international markets over the past year.

**News published in 2024** stated that Oben Electric 3 displays entered the show net electric pvt via financial projections aided expansion strategy of south Oben plans to launch four electric two-wheelers in six months, ranging from Rs 60,000 to Rs 1,50,000. Being a Make-in-India brand, Oben Electric is still at the forefront of the change of e-mobility in India for younger audiences by suppressing the increasing need for effective and eco-friendly transportation solutions.

Also, according to the report published in the year **2024**, Honda Motorcycles & Scooter India will foray FY 2024-25 into the electric two-wheeler segment. Although this company is the foremost player in the market for Internal Combustion Engine motorcycles and scooters, there is an electric scooter in the making to respond to the demand which is rapidly rising. Additionally, Honda will launch a CB300F flex-fuel motorcycle which can use ethanol blended petrol.

**In 2024** Bajaj Auto aims to increase its two-wheeler dealerships vertically from 250 as of the first quarter of FY25 to 500 in the second quarter. The company has been able to increase its market share by using various strategies, including competitive pricing of its products, expanding the dealer network and coming up with low-cost models. Its flagship electric scooter, the Chetak Urbane, has taken head-on the competition.

**In 2024**, the electric vehicle market is also fast catching up to the competition at the level of TVS Motor. The two-wheeler electric vehicle sales in India are expected to cross 30 percent of the market in 2025; hence, there is an aggressive increase in the sales of electric vehicles planned for the next two years.

**December 2022:**The Tiger 1200 has been unveiled in India, featuring cutting-edge technologies such as a blind-spot radar system, a Showa semi-active suspension setup, a seven-inch TFT display, six riding modes, and a keyless system.

**August 2022**: Yamaha Motor Pvt. Ltd. has introduced an exciting 2022 Monster Energy Yamaha MotoGP Edition lineup in India. The models include the Supersport YZF-R15M, the Dark Warrior MT-15 V2.0, the Maxi-sports Scooter AEROX 155, and the RayZR 125 Fi Hybrid scooter.

## **India Two Wheeler Market Segmentation:**

### **Two Wheeler Engine Type Outlook**

## Market Drivers

### Rising Fuel Prices

The persistent rise in fuel prices is another significant factor influencing the India Two Wheeler Market. As fuel costs escalate, consumers are likely to seek more economical transportation alternatives. Two-wheelers, known for their fuel efficiency, present an attractive option for cost-conscious buyers. Data indicates that the average fuel efficiency of two-wheelers in India is around 50-60 kilometers per liter, which is considerably higher than that of cars. This economic advantage may drive more consumers towards purchasing two-wheelers, thereby bolstering the India Two Wheeler Market Sector as individuals prioritize affordability in their transportation choices.

### Increasing Urbanization

The rapid urbanization in India is a pivotal driver for the India Two Wheeler Market. As more individuals migrate to urban areas, the demand for efficient and affordable transportation options rises. Two-wheelers offer a practical solution to navigate congested city streets, making them increasingly popular among urban dwellers. According to recent data, urban areas in India are expected to house over 600 million people by 2031, which could lead to a substantial increase in two-wheeler sales. This trend suggests that the India Two Wheeler Industry will continue to thrive as urban populations grow, necessitating convenient mobility solutions that two-wheelers provide.

### Government Initiatives and Subsidies

Government initiatives aimed at promoting the use of two-wheelers play a crucial role in shaping the India Two Wheeler Market. Various state and central government schemes provide subsidies and incentives for electric two-wheelers, encouraging consumers to make the switch from traditional fuel-powered vehicles. For instance, the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme has been instrumental in boosting [electric two-wheeler](https://www.marketresearchfuture.com/reports/electric-two-wheeler-market-5456) sales. As the government continues to support the transition towards sustainable transportation, the India Two Wheeler Industry is likely to experience growth driven by these favorable policies and incentives.

### Technological Innovations in Two-Wheelers

Technological advancements in two-wheeler design and functionality are reshaping the India Two Wheeler Market. Innovations such as improved engine efficiency, enhanced safety features, and smart connectivity options are attracting consumers. The integration of technology, such as anti-lock braking systems and [smartphone](https://www.marketresearchfuture.com/reports/smartphone-market-8165)connectivity, enhances the overall riding experience. As manufacturers increasingly focus on incorporating cutting-edge technology into their products, the appeal of two-wheelers is likely to grow. This trend suggests that the India Two Wheeler Market Sector will benefit from a continuous influx of technologically advanced models, catering to the evolving preferences of consumers.

### Youth Demographics and Changing Preferences

The demographic profile of India, characterized by a large youth population, significantly impacts the India Two Wheeler Market. With a growing number of young professionals entering the workforce, there is an increasing demand for personal mobility solutions. Two-wheelers are often perceived as a symbol of freedom and independence among the youth, making them a preferred choice. Recent statistics suggest that nearly 50% of two-wheeler buyers in India are under the age of 30. This trend indicates that the India Two Wheeler Market Sector will continue to evolve, catering to the preferences and aspirations of the younger generation.

## Future Outlook

The India Two Wheeler Market is projected to grow at a 3.5% CAGR from 2025 to 2035, driven by urbanization, rising disposable incomes, and increasing demand for fuel-efficient vehicles.

**New opportunities:**

- Expansion of electric two-wheeler charging infrastructure in urban areas. Development of subscription-based ownership models for urban commuters. Integration of smart technology features in two-wheelers for enhanced user experience.

By 2035, the market is expected to solidify its growth trajectory, reflecting evolving consumer preferences.

## Segment Insights

### By Engine Type: Electric (Largest) vs. ICE (Fastest-Growing)

In the India Two Wheeler Market, the distribution of market share by engine type reveals a significant dominance of electric vehicles. Electric bikes and scooters are steadily claiming a larger share due to rising environmental concerns and government incentives, while [internal combustion engines (ICE)](https://www.marketresearchfuture.com/reports/internal-combustion-engine-market-28193) continue to hold substantial relevance in the market. Despite the historical prevalence of ICE vehicles, the preference for electric options is increasingly reshaping the dynamics, pushing ICE to adapt and innovate. Growth trends indicate that electric vehicles are not only the largest segment but are also on the trajectory to outpace ICE in the long term. Supported by favorable government policies, expanding charging infrastructure, and increasing consumer awareness about sustainability, electric two-wheelers are rapidly gaining traction. In contrast, the ICE segment remains competitive by transitioning to more efficient technologies to uphold its market presence. However, the overall shift towards electrification suggests a transformative period ahead for the two-wheeler industry in India.

Engine Type: Electric (Dominant) vs. ICE (Emerging)

The electric two-wheelers are rapidly establishing themselves as the dominant force in the India Two Wheeler Market. Their appeal primarily lies in their eco-friendliness and lower operating costs, which resonate well with the growing number of environmentally conscious consumers. As manufacturers introduce more innovative models with advanced technology, the electric segment becomes increasingly attractive to buyers. Conversely, ICE vehicles are considered emerging due to their ongoing evolution in response to regulatory pressures and competition from electric alternatives. Manufacturers in the ICE segment are focusing on enhancing fuel efficiency and reducing emissions to maintain market relevance. As the industry evolves, the competition between electric and ICE vehicles will likely intensify, leading to diversified offerings for consumers.

## Competitive Benchmarking

Leading market players focus on introducing new and innovative models with advanced features to attract a wider consumer base. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new Engine Type launches, contractual agreements, mergers and acquisitions, cost competitiveness, higher investments, and collaboration with other organizations.
To expand and survive in a more competitive and rising market climate, Two-Wheeler industry must offer cost-effective items. Major players in the Two Wheeler market are attempting to increase market demand by investing in research and development operations, including Ampere, [Ather Energy Pvt. Ltd.,](https://www.atherenergy.com/)Bajaj Auto Ltd., BMW India Private Limited, Ducati India Private Limited, Hero MotoCorp Ltd., Honda Motorcycle and Scooter India Pvt. Ltd, Lohia Auto Industries, Okinawa Autotech Pvt. Ltd, Ola Electric Mobility Pvt Ltd, Royal Enfield Ltd. India, Suzuki Motorcycle India Pvt. Ltd., [Triumph Motorcycles (India)](https://www.triumphmotorcycles.in/) Private Limited, TVS Motor Company Limited, and Yamaha Motor India Pvt. Ltd..

## Recent News & Developments

**Q1 2025**: Ola Electric Mobility Pvt. Ltd. launched the Ola S1 Pro+ electric scooter with improved battery range and advanced smart features, strengthening its premium EV portfolio. During the same quarter, the company partnered with local battery manufacturers to scale production capacity and reported a 50% quarter-on-quarter sales growth, driven by strong market response to the new model.

**Q1 2025**: Royal Enfield Ltd. (India) unveiled the Classic 350X, blending modern technology with its signature retro design. The company also announced plans to expand its rural dealership network and reported a 30% year-on-year increase in exports, reflecting rising global demand for its motorcycles.

**Q2–Q3 2024**: Oben Electric outlined an aggressive expansion strategy backed by financial projections, with plans to launch four new electric two-wheelers within six months, priced between ₹60,000 and ₹1.5 lakh. As a Make-in-India brand, Oben continues to target younger consumers with affordable and sustainable mobility solutions.

**FY 2024–25**: Honda Motorcycle & Scooter India confirmed its entry into the electric two-wheeler segment, responding to rapidly growing EV demand. Alongside this, Honda announced the development of a CB300F flex-fuel motorcycle capable of running on ethanol-blended petrol.

**FY 2024**: Bajaj Auto accelerated its dealership expansion, increasing two-wheeler outlets from 250 in Q1 FY25 to a planned 500 by Q2 FY25. Competitive pricing, network expansion, and the strong performance of its Chetak electric scooter have helped improve Bajaj’s market share in India.

**FY 2024**: TVS Motor Company continued to ramp up its electric vehicle strategy, aligning with industry forecasts that electric two-wheelers could account for over 30% of India’s market by 2025, prompting aggressive EV sales and capacity expansion plans.

**Q4 2022**: Triumph Motorcycles unveiled the Tiger 1200 in India, featuring advanced technologies such as blind-spot radar, semi-active suspension, a TFT display, multiple riding modes, and keyless ignition, reinforcing its premium adventure bike lineup.

**Q3 2022**: Yamaha Motor India launched the 2022 Monster Energy Yamaha MotoGP Edition range, including the YZF-R15M, MT-15 V2.0, Aerox 155, and RayZR 125 Fi Hybrid, targeting performance-focused and youth-centric segments.

## Report Scope

| MARKET SIZE 2024 | 335.07(USD Billion) |
| --- | --- |
| MARKET SIZE 2025 | 346.81(USD Billion) |
| MARKET SIZE 2035 | 489.3(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 3.5% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Hero MotoCorp (IN), Bajaj Auto (IN), TVS Motor Company (IN), Honda Motorcycle and Scooter India (IN), Royal Enfield (IN), Suzuki Motorcycle India (IN), Yamaha Motor India (IN), KTM India (AT), Mahindra Two Wheelers (IN) |
| Segments Covered | Engine Type |
| Key Market Opportunities | Growing demand for electric two-wheelers driven by environmental regulations and consumer preference for sustainable mobility. |
| Key Market Dynamics | Rising consumer preference for electric two-wheelers drives innovation and competition in the India Two Wheeler Market. |
| Countries Covered | North America, Europe, APAC, South America, MEA |

## Frequently Asked Questions

**Q: What is the current valuation of the India Two Wheeler Market?**
A: The overall market valuation was 335.07 USD Billion in 2024.

**Q: What is the projected market valuation for the India Two Wheeler Market in 2035?**
A: The projected valuation for 2035 is 489.3 USD Billion.

**Q: What is the expected CAGR for the India Two Wheeler Market from 2025 to 2035?**
A: The expected CAGR during the forecast period 2025 - 2035 is 3.5%.

**Q: Which companies are the key players in the India Two Wheeler Market?**
A: Key players include Hero MotoCorp, Bajaj Auto, TVS Motor Company, and Honda Motorcycle and Scooter India.

**Q: What are the main segments of the India Two Wheeler Market based on engine type?**
A: The main segments include Electric, Hybrid and Electric Vehicles, and Internal Combustion Engine (ICE) types.

**Q: What was the market size for Electric Two Wheelers in 2024?**
A: The market size for Electric Two Wheelers was valued at 30.0 USD Billion in 2024.

**Q: How much is the market for Hybrid and Electric Vehicles projected to grow by 2035?**
A: The market for Hybrid and Electric Vehicles is projected to grow to 60.0 USD Billion by 2035.

**Q: What was the valuation of the Internal Combustion Engine (ICE) segment in 2024?**
A: The ICE segment was valued at 285.07 USD Billion in 2024.

**Q: How does the growth of the India Two Wheeler Market compare to other segments?**
A: The ICE segment shows a larger valuation compared to Electric and Hybrid segments, indicating a diverse market landscape.

**Q: What trends are influencing the growth of the India Two Wheeler Market?**
A: Trends include increasing demand for electric vehicles and advancements in hybrid technology, shaping future market dynamics.


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