India is poised to overtake China as the largest two-wheeler (2W) market globally by the end of this year, driven by strong economic growth, a preference for two-wheelers for short commutes, and rising demand in the shared mobility sector, according to a report from Counterpoint Research released on Friday.
The electric two-wheeler (E2W) market is experiencing rapid growth, with the penetration of electric two-wheelers expected to be 1.5 times that of four-wheeler passenger electric vehicles (EVs) by 2024.
Despite an overall sales growth of less than 1% year-on-year in 2023, the E2W segment is projected to see significant expansion, with more than a quarter of all two-wheelers sold in 2024 anticipated to be electric.
Soumen Mandal, a senior analyst, noted that the two-wheeler market is approaching maturity, but the shift towards electrification is expected to accelerate, particularly after 2025. “Especially, Southeast Asian countries and India will witness mainstream adoption of E2Ws with a faster transition to EVs in these markets,” Mandal stated.
India’s emergence in the E2W market is highlighted by the presence of three Indian brands among the top ten in the segment—Ola Electric, TVS Motor, and Ather Energy. Ola and Ather are greenfield “EV-first” companies that are challenging established players like TVS, Hero, and Bajaj.
“In the premium 2W segment, we are seeing the entry of newer players such as Ultraviolet, Revolt Motors, Energica Motor, Damon, and ARC Vehicle to compete with Harley Davidson, Enfield, Yamaha, and others,” the report added.
The global share of electric two-wheelers in the overall two-wheeler market is projected to reach 44% by 2030. Cumulative sales of electric two-wheelers are expected to exceed 150 million units between 2024 and 2030, significantly driving the global scale for the emerging E2W value chain.
Research Vice President Neil Shah commented on the transformation of the two-wheeler market, which, similar to the four-wheeler market, is embracing connectivity against the backdrop of increasing electrification. “Electrification entails ubiquitous wide area network connectivity, like 4G now or 5G RedCap in the future, along with related software and services,” Shah explained. He also predicted that the overall semiconductor consumption by two-wheelers would increase to 15% by 2030.
