India surpasses China to become the world’s largest two-wheeler market: Report

India stood out with a remarkable 22% growth

In a significant milestone for the Indian automotive sector, India has officially surpassed China to become the largest two-wheeler market in the world. This achievement is primarily attributed to growing demand in rural areas, bolstered by favorable monsoon conditions and government initiatives aimed at rural development, according to a report released on Friday by Counterpoint Research.

The global two-wheeler market saw a 4% year-on-year increase in sales during the first half of 2024, but India stood out with a remarkable 22% growth during the same period. Senior analyst Soumen Mandal highlighted that this robust performance enabled India to eclipse China as the leading market for two-wheelers.

While two-wheeler sales in India experienced strong double-digit growth in the second quarter of this fiscal year, the situation in China has shifted. Consumers there are increasingly favoring e-bicycles over traditional motorcycles and scooters for daily commuting, leading to a temporary slowdown in the Chinese market, particularly in the electric segment.

Southeast Asia has also faced challenges, with major markets like Indonesia, Vietnam, the Philippines, Thailand, and Malaysia reporting declines in two-wheeler sales. Factors such as geopolitical trade tensions, stricter lending criteria, and cautious consumer spending amid economic uncertainties have contributed to this downturn.

Despite these global trends, India’s performance is notable. The top ten global two-wheeler manufacturers accounted for over 75% of sales in the first half of 2024, with Honda leading the market, followed by Hero MotoCorp, Yamaha, TVS Motor, and Yadea. TVS Motor emerged as the fastest-growing brand, posting a 25% year-on-year increase, while Yadea experienced a 29% decline.

Looking to the future, Neil Shah, Vice President of Research, indicated that the electrification of two-wheelers is gaining momentum, with projections suggesting that by 2030, four out of ten two-wheelers sold will be electric. This transition is also expected to accelerate the adoption of embedded cellular connectivity in the segment, as the industry moves towards connected vehicle technology.

As India solidifies its position as a global leader in the two-wheeler market, the implications for economic growth and job creation in the automotive sector are promising, positioning the country as a bright spot in the global economy.

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