India Set to Surpass China as World's Largest Two-Wheeler Market in 2024
Friday, 09 August 2024, 12:23 IST
India is poised to overtake China and become the world's largest two-wheeler (2W) market this year, according to a recent report by Counterpoint Research. The anticipated shift is driven by India's robust economic growth, a strong consumer preference for two-wheelers for short-distance commutes, and a surge in demand for two-wheelers in the shared mobility sector.
The electric two-wheeler (E2W) segment is experiencing rapid expansion, with sales penetration in 2024 projected to be 1.5 times that of four-wheeler passenger electric vehicles. Despite two-wheeler sales growing by less than 1% year-over-year in 2023, the E2W market is expected to see significant growth. It is estimated that over a quarter of two-wheelers sold in 2024 will be battery-powered.
Soumen Mandal, a senior analyst at Counterpoint Research, highlighted that while the two-wheeler market is approaching maturity, the shift towards electrification is set to accelerate, particularly after 2025. He noted, “Southeast Asian countries and India are expected to witness mainstream adoption of E2Ws, with a quicker transition to electric vehicles in these markets”.
India's presence in the electric two-wheeler sector is becoming increasingly prominent, with three of the top ten E2W brands originating from the country: Ola Electric, TVS Motor, and Ather Energy. Ola and Ather, as 'EV-first' companies, are challenging established players like TVS, Hero, and Bajaj.
In the premium two-wheeler segment, new entrants such as Ultraviolet, Revolt Motors, Energica Motor, Damon, and ARC Vehicle are making their mark, competing with established brands like Harley Davidson, Enfield, and Yamaha.
The report forecasts that electric two-wheelers will account for 44% of global two-wheeler sales by 2030, with cumulative sales expected to surpass 150 million units between 2024 and 2030. This growth will drive the global scale of the emerging E2W value chain.
Neil Shah, Research Vice President at Counterpoint, observed that the transformation of the two-wheeler market mirrors that of the four-wheeler market, with a notable shift towards connectivity. “Electrification requires extensive network connectivity, such as 4G now or future 5G RedCap, along with related software and services”, Shah said. The overall semiconductor consumption by two-wheelers is also projected to rise to 15% by 2030.
The electric two-wheeler (E2W) segment is experiencing rapid expansion, with sales penetration in 2024 projected to be 1.5 times that of four-wheeler passenger electric vehicles. Despite two-wheeler sales growing by less than 1% year-over-year in 2023, the E2W market is expected to see significant growth. It is estimated that over a quarter of two-wheelers sold in 2024 will be battery-powered.
Soumen Mandal, a senior analyst at Counterpoint Research, highlighted that while the two-wheeler market is approaching maturity, the shift towards electrification is set to accelerate, particularly after 2025. He noted, “Southeast Asian countries and India are expected to witness mainstream adoption of E2Ws, with a quicker transition to electric vehicles in these markets”.
India's presence in the electric two-wheeler sector is becoming increasingly prominent, with three of the top ten E2W brands originating from the country: Ola Electric, TVS Motor, and Ather Energy. Ola and Ather, as 'EV-first' companies, are challenging established players like TVS, Hero, and Bajaj.
In the premium two-wheeler segment, new entrants such as Ultraviolet, Revolt Motors, Energica Motor, Damon, and ARC Vehicle are making their mark, competing with established brands like Harley Davidson, Enfield, and Yamaha.
The report forecasts that electric two-wheelers will account for 44% of global two-wheeler sales by 2030, with cumulative sales expected to surpass 150 million units between 2024 and 2030. This growth will drive the global scale of the emerging E2W value chain.
Neil Shah, Research Vice President at Counterpoint, observed that the transformation of the two-wheeler market mirrors that of the four-wheeler market, with a notable shift towards connectivity. “Electrification requires extensive network connectivity, such as 4G now or future 5G RedCap, along with related software and services”, Shah said. The overall semiconductor consumption by two-wheelers is also projected to rise to 15% by 2030.
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