India 2-Wheeler Market: Current Scenario and Forecast (2020-2025)

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Emphasis on Source Type (ICE (Internal Combustion Engine, E2W (Electric 2-Wheeler)), ICE 2W Vehicle Type (Motorcycle, Scooter, Moped, Performance Bike, Other), ICE 2W Vehicle Class (Economy, Executive, Premium, Other)

Published:

Mar-2020

Pages:

81

Table:

32

Figure:

47

Report ID:

UMAU20178

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Report Description
Table of content
Research Methodology

Report Description

 

Indian 2 Wheeler Market unit sales stood at 21.2 million units in 2019 and would reach sale of 26.6 million units by 2025 displaying a reasonable CAGR of 2.6% over the forecast period (2020-2025). The two-wheeler industry in India has grown rapidly since the announcement of the process of liberalization in 1991. Previously, there were only a handful of two-wheeler models available in the country. Currently, India is the second largest producer of two-wheelers in the world next only to China. One of the chief factors of more 2W ownership in India is poor public transport facility in many parts of India. Additionally, two-wheelers offer a great deal of convenience and mobility for the Indian family. The change in the government’s policy owning to pollution control norms and the Kyoto agreement saw the phasing out of two stroke two-wheelers from production. Currently the top 10 two-wheeler manufacturers in the country includes Bajaj, Hero, Hero, Honda, Royal Enfield, Suzuki, TVS, Mahindra, Piaggio and Yamaha. The latest trend in the two-wheeler market is the introduction of electrically operated 2W from a range of manufacturers such as Indus and Hero. The electric 2W are rechargeable from convenient household electrical points. The only disadvantage is speed, which is restricted to some miles per hour. Motorcycle sales in India skyrocketed over the past few years, making the country the biggest motorcycle market in the World overtaking China since the 2016 and achieving a record volume of 20.2 million units in the 2018. During the 2012-2018 cumulative period, sales stood at more than 100 million bikes, a too fast growth for a country with still poor urban and extra-urban infrastructures. According to the data released by the Society of Indian Automobile Manufacturers (SIAM) two-wheeler domestic wholesales grew by 4.86 per cent in the financial year 2018-19 at 21,181,390 units compared to 20,200,117 units dispatched in the previous fiscal.

India 2-Wheeler Market, Ownership Costing

Motorcycle and scooter sales in India is expected to grow significantly over the analysed period amid positive demand drivers, supported by growing per capita income over the last few years. In Addition, increase in rural income would support motorcycle demand and scooters’ demand is expected to be led by rapid urbanisation, increased affordability and greater penetration through targeted product launches.

“Amongst Source Type, ICE (Internal Combustion Engine) segment is projected to hold the largest market share”

Based on source type, the market is fragmented into ICE (Internal Combustion Engine) and Electric 2-wheeler. ICE segment holds lion’s share in the Indian 2-wheeler market while electric segment expected to grow considerably over the analyzed period. The growth of the electric 2-wheeler market is attributed to the availability of supportive government subsidies, the rising concern towards the environment, as well as introduction of stringent emission norms.

“Amongst ICE Vehicle Type, motorcycle is expected to dominate the market during the analyzed period”

Based on vehicle type, the ICE 2-wheeler market is mainly bifurcated into Motorcycle, Scooter, Moped, Performance Bike and Other Models. Motorcycle sales in India skyrocketed over the past few years, making the country the biggest motorcycle market in the World overtaking China since the 2016. The motorcycle sales in India will continue to follow its trend and will keep dominating the Indian 2-wheeler market

Sales of ICE 2-Wheelers in India, By Vehicle Type, 2018 (‘000 Units)

“Amongst ICE Vehicle Class, Economy segment is expected to dominate the market during the analyzed period”

Based on ICE 2W class type, the Indian 2-wheeler market is mainly bifurcated into Economy, Executive, Premium and Other Models. Economy vehicle segment dominated the market in 2019 and would lead the market during the forecast period.

Competitive Landscape-Top 10 Market Players

Hero MotoCorp, Honda, TVS, Bajaj, Royal Enfield, Yamaha, Suzuki, Piaggio, Mahindra, Kawasaki, Harley Davidson and Triumph are some of the prominent players operating in the Indian 2-Wheeler Market. These companies have entered into several M&A’s along with partnerships to facilitate costumers with hi-tech and innovative products.

Reasons to buy:

  • Current and future market size from 2020 to 2025 in terms of volume (Unit)
  • Combined analysis of deep dive secondary research and input from primary research through Key Opinion Leaders of the industry
  • Country level details of the overall adoption of 2-Wheeler
  • A quick review of overall industry performance at a glance
  • An In-depth analysis of key industry players
  • A detailed analysis of government initiative, drivers, restraints, key trends and opportunities prevailing in the industry
  • Examination of industry attractiveness with the help of Porter’s Five Forces analysis and start ups
  • The study comprehensively covers the market across different segments and sub-segments of the market

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1.1 Market Definition 1.2 Objective of the Study 1.3 Limitation 1.4 Stakeholders 1.5 Scope of the India 2W Market Study

2.1 Research Methodology for Indian 2W Market Study
   2.1.1 Main objective of the Indian 2W Market Study

EXECUTIVE SUMMARY

4.1 Introduction to Indian 2-Wheeler Market
4.2 Market Growth Drivers
    4.2.1 Favorable Macroeconomic and Demographic Trends
       4.2.1.1 UMI Analysis of Impact on 2W Industry
    4.2.2 Increasing workforce participation
    4.2.3 Rapidly populating urban areas will demand alternate quicker and more economical mode of transport
       4.2.3.1 UMI Analysis of Impact on 2W Industry
    4.2.4 India’s rural income is projected to improve led by farm and non-farm demand recovery
    4.2.5 Burgeoning middle-class population with increasing disposable income will drive the demand for 2W
       4.2.5.1 UMI Analysis of Impact on 2W Industry
    4.2.6 Growing Youth Population would drive the demand for 2W in India
       4.2.6.1 UMI Analysis of Impact on 2W Industry
    4.2.7 Continued government focus on supporting the industry
       4.2.7.1 Other Government initiatives for the Industry Includes:

5.1 Penetration of EV in this market vis a vis segmental cannibalization in motorcycle or scooter
5.2 Current and projected demand of EV 2-Wheelers (Volume)
    5.2.1 Facts about Electric 2-Wheelers in India
    5.2.2 Factor Supporting the adoption of Electric 2-Wheeler in India
    5.2.3 Different Case Scenario for the growth of Electric 2W in India
    5.2.4 Decreasing cost of Lithium-Ion Battery would drive the market for Electric Vehicle in future
       5.2.4.1 UMI Analysis of E2W Demand

6.1 Growth Opportunities
    6.1.1 Increasing Investment
    6.1.2 Low threat of new entrants in the market
    6.1.3 Reducing the Cost of lithium-ion batteries will drive the Electric Vehicle Market
    6.1.4 Continuous Government Supports
6.2 OEM Growth Model, by Company
    6.2.1 Hero MotoCorp Limited (Hero MotoCorp)
    6.2.2 Bajaj Auto Limited (Bajaj)
    6.2.3 Honda Motorcycle and Scooter India (Honda)
    6.2.4 TVS Motor Company Limited (TVS)
6.3 UMI Analysis of Indian 2W Industry
    6.3.1 Overview of Budget 2019 For Indian Auto Sector and Expert Opinion
6.4 Analysis of NBFC’s strictness/ Regulations and if the effect on the cost of the vehicle
    6.4.1 Current Scenario
    6.4.2 Impact on 2W Industry
    6.4.3 RBI New Norms
6.5 UMI Analysis of Impact on 2W Industry

7.1 Future two-wheeler Sales in India (based on estimated domestic sales)

8.1 Market Size of Two-Wheeler
    8.1.1 Indian Two-Wheeler Market by Type of 2W

9.1 Indian Two-Wheeler Market by Class of 2W

10.1 Market Share of Two-Wheeler, by Company
    10.1.1 Market Share of Motorcycle, by Company
    10.1.2 Market Share of Scooter, by Company
    10.1.3 Market Share of Moped, by Company
    10.1.4 Market Share of Performance Bike, by Company
    10.1.5 Market Share of Economy 2W, by Company
    10.1.6 Market Share of Executive 2W, by Company
    10.1.7 Market Share of Premium 2W, by Company

11.1 Hero MotoCorp Ltd.
    11.1.1 Business Overview
      11.1.1.1 Key Findings on Hero 2W Business
    11.1.2 Facts on Two-Wheeler Business
    11.1.3 Future Plans of the Company for 2W business
11.2 Bajaj Auto Ltd.
    11.2.1 Business Overview
      11.2.1.1 Key Findings on Bajaj 2W business
    11.2.2 Facts on Two-Wheeler Business
    11.2.3 Future Plans of the Company for 2W business
11.3 TVS Motor Company
    11.3.1 Business Description
      11.3.1.1 Key Findings on TVS 2W business
    11.3.2 Facts on Two-Wheeler Business
    11.3.3 Future Plans of the Company for 2W business
11.4 Honda Motorcycle and Scooter India, Pvt. Ltd.
    11.4.1 Business Overview
      11.4.1.1 Key Findings on HMSI 2W Business
    11.4.2 Facts on Two-Wheeler Business
    11.4.3 Future Plans of the Company for 2W business
11.5 India Yamaha Motor Pvt. Ltd.
    11.5.1 Business Overview
    11.5.2 Facts on Two-Wheeler Business
    11.5.3 Future Plans of the Company for 2W business
11.6 Suzuki Motorcycle India, Pvt. Ltd.
    11.6.1 Business Overview
    11.6.2 Facts on Two-Wheeler Business
    11.6.3 Future Plans of the Company for 2W business
11.7 Mahindra two wheelers Ltd.
    11.7.1 Business Overview
      11.7.1.1 Key Findings on Mahindra 2W Business
    11.7.2 Facts on Two-Wheeler Business
    11.7.3 Future Plans of the Company for 2W business
11.8 Royal Enfield Motors Ltd.
    11.8.1 Business Description
      11.8.1.1 Key Findings on Royal Enfield 2W Business
    11.8.2 Facts on Two-Wheeler Business
    11.8.3 Future Plans of the Company for 2W business
11.9 Harley Davidson India
    11.9.1 Business Description
    11.9.2 Facts on Two-Wheeler Business
    11.9.3 Future Plans of the Company for 2W business
11.10 Piaggio Vehicles Pvt. Ltd.
    11.10.1 Business Description
    11.10.2 Facts on Two-Wheeler Business
    11.10.3 Future Plans of the Company for 2W business
11.1 India Kawasaki Motors Pvt. Ltd.
    11.11.1 Business Description
    11.11.2 Facts on Two-Wheeler Business
    11.11.3 Future Plans of the Company for 2W business
11.12 Triumph Motorcycles (India) Pvt. Ltd.
    11.12.1 Business Description
    11.12.2 Facts on Two-Wheeler Business
    11.12.3 Future Plans of the Company for 2W business

12.1 Details of all Factors & Variables Assumed for Research on 2W Industry in India
12.2 Primary Interviews/Field Survey Findings
12.3 Limitations of the Study

Research Methodology

Analyzing the historical market, estimation of the current market and forecasting the future market for the Indian 2-Wheeler industry were the three major steps undertaken to create and analyze the adoption trend of 2W in India. We conducted an exhaustive secondary research to collect the historical market numbers to estimate the current market size in terms of volume. Secondly, to validate these insights, numerous findings and assumptions was taken into consideration. Moreover, exhaustive primary interviews were conducted with industry experts across the value chain of the Indian 2-Wheeler industry. Post assumption and validation of market numbers through primary interviews, bottom-up approach was employed to forecast the complete market size of the Indian 2-Wheeler Market. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Indian 2-Wheeler through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database and other credible publications. For economic data collection, sources such as Trading Economics, Trade Map, World Bank, IMF, FAO among others were used.

Step 2: Market Segmentation:

After obtaining the historical market size (in volume) of the Indian 2-Wheeler industry, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments across the sector. Major segments included in the report are by source type, vehicle type and vehicle class.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, detailed factor analysis was conducted to estimate the current market size of Indian 2-Wheeler Market. Factor analysis was conducted using dependent and independent variables such as increasing investment, increasing demand for alternate quicker and more economical mode of transport, burgeoning middle-class population with increasing disposable income, factor supporting the adoption of electric 2 -Wheeler, decreasing cost of Li-ion battery and low threat of new entrants. The demand and supply-side scenario were thoroughly studied by considering top partnerships, merger and acquisition, business expansion, product launches and analyzing the list of start-ups in the Indian 2-Wheeler Market across the country.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Indian 2-Wheeler Market and market shares of these players. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weight would be assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e. Bottom-up approach were applied to arrive at the market forecast pertaining to 2025 for different segments and sub-segments. The research methodology adopted to estimate the market size encompasses:

  • The industry’s market size, in terms of volume (unit)
  • All percentage shares, splits, and breakdowns of market segments and sub-segments in terms of volume (units)
  • Key players in the Indian 2-Wheeler Market in terms of the product offered as well as market share. Also, the growth strategies adopted by these players to compete in the ever-growing Indian 2W market

Market Size and Share Validation

Primary Research: We conducted in-depth interviews with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, and Operational Head etc.). We summarized primary research findings and performed statistical analysis to prove the stated hypothesis. Further, we consolidated the inputs from primary research with secondary findings, hence turning information into actionable insights.

Split of Primary Participants

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment pertaining to the Indian 2-Wheeler Market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of source type, vehicle type and vehicle class.

Main objective of the Indian 2-Wheeler Market Study

The report highlights the current & future market trends of the Indian 2-Wheeler industry. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

  • Analyze the current and forecast market size of the Indian 2-Wheeler Market in terms of volume (unit).
  • Segments in the study include source type, vehicle type and vehicle class
  • Define and analysis of the government support for Indian 2-Wheeler Market
  • Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors pertaining to the industry

Define and analyze the competitive landscape of the Indian 2-Wheeler Market and the growth strategies adopted by the market players to sustain in the fast-growing market