• India has surpassed China to become the world's largest two-wheeler market, driven by rising rural demand.
• The global two-wheeler market saw a 4% YoY growth in H1 2024, with India witnessing a remarkable 22% YoY growth.
• Electrification is on the rise in the two-wheeler segment, with four out of 10 two-wheelers expected to be electric by 2030.
• India's rise to the top of the global two-wheeler market signifies robust economic growth and successful government initiatives.

India has made a significant stride in the global two-wheeler market, surpassing China to become the world's largest two-wheeler market. This achievement is primarily driven by the rising demand in rural areas, which has been bolstered by favourable monsoon conditions and government initiatives aimed at rural development.

According to Counterpoint Research, two-wheeler sales globally grew by 4% year-on-year in the first half of 2024. While regions like India, Europe, North America, Latin America, and the Middle East and Africa experienced growth, China and Southeast Asia saw a decline.

Senior analyst Soumen Mandal highlighted that India's two-wheeler market witnessed a remarkable 22% YoY growth in the first half of this year. This strong performance allowed India to surpass China and become the world's largest two-wheeler market, he stated.

India's Two-Wheeler Market: A Closer Look

In China, two-wheelers under 125cc remain popular, but consumers are increasingly opting for e-bicycles over motorcycles and scooters for daily commuting. This shift has led to a temporary slowdown in the Chinese two-wheeler market, particularly in the electric segment.

In Southeast Asia, major markets such as Indonesia, Vietnam, the Philippines, Thailand, and Malaysia saw a decline in two-wheeler sales due to geopolitical trade tensions, stricter lending criteria, and cautious consumer spending amid economic uncertainty.

The top-10 global two-wheeler manufacturers captured over 75% of sales during H1 2024. Honda maintained its leading position in the global two-wheeler market, followed by Hero MotoCorp, Yamaha, TVS Motor, and Yadea. TVS Motor was the fastest-growing brand, up 25% YoY, among the top-10 brands, while Yadea declined the most, down 29% YoY, slipping to fifth position.

The Future of Two-Wheelers: Electrification and Connectivity

Neil Shah, Vice President of Research, noted that electrification is on the rise, and by 2030, they expect four out of 10 two-wheelers sold to be electric. This shift is also accelerating the adoption of embedded cellular connectivity in the two-wheeler segment. As the automotive industry advances toward C-V2X technology, the two-wheeler segment will follow suit, he added.

Soumen Mandal also mentioned that the two-wheeler market is heading towards maturity, but the adoption of electrification is expected to rise significantly, particularly after 2025. Especially, Southeast Asian countries and India will witness mainstream adoption of E2Ws with a faster transition to EVs in these markets, he said.

Among the top 10, three E2W brands are from India -- Ola Electric, TVS Motor, and Ather Energy, reflecting India's emerging presence in the E2W market. Ola and Ather are also greenfield EV-first 2W companies challenging the incumbents such as TVS, Hero, and Bajaj.

The electric E2W share in global 2W sales will reach 44% by 2030, while cumulative E2W sales will exceed 150 million units between 2024 and 2030, driving global scale for the emerging E2W value chain.