India’s two-wheeler industry is undergoing changes in consumer demand, vehicle technology, and distribution strategies as electric mobility gains attention and manufacturers respond to evolving transportation needs. Growing demand for personal mobility, expanding delivery and logistics operations, and changing preferences for motorcycles and scooters are creating new opportunities across the market.

Hyderabad, India, Oct. 21, 2026 (GLOBE NEWSWIRE) -- According to the latest report by Mordor Intelligence, India’s two-wheeler market size is expected to grow from USD 30.29 billion in 2026 to USD 38.68 billion by 2031, at a CAGR of 5.02%. Government support for electric mobility, improving export demand, and the expansion of online sales platforms are supporting the market’s outlook. Demand for convenient personal transportation in congested cities, improving household spending, and the growing use of two-wheelers for delivery services are also contributing to market expansion. Meanwhile, competition between established manufacturers and electric vehicle companies is encouraging product upgrades, improved connectivity, and competitive pricing across different customer segments.

Trends and Drivers Shaping Two-Wheeler Demand in India

Urban Traffic Congestion Boosting Two-Wheeler Demand: Heavy traffic in major Indian cities is increasing the appeal of scooters and motorcycles for daily travel. Their ability to navigate crowded roads, require less parking space, and support faster delivery services makes scooters and motorcycles a practical choice for urban commuters and businesses.

Government EV Incentives Supporting Electric Two-Wheeler Adoption: Purchase incentives, infrastructure development and state-level subsidies are supporting electric two-wheeler adoption. Investments in EV parks and charging and battery-swapping facilities are also helping manufacturers expand their electric vehicle offerings and support the shift toward cleaner mobility.

“The India two-wheeler market reflects changing consumer preferences, affordability considerations, and evolving demand across vehicle categories. Mordor Intelligence applies a consistent research framework to assess market size, competitive positioning, and growth drivers, supporting informed decisions through structured, comparable market analysis.” says Phani Kumar, Senior Research Manager, Mordor Intelligence.  

India Two-Wheeler Regional Market Dynamics

Uttar Pradesh remains a major centre of two-wheeler demand, supported by its large population and growing urban areas. Motorcycles are widely used in rural districts, while scooter demand is increasing in urban centres. State incentives are encouraging EV manufacturing, although limited charging infrastructure outside major cities remains a challenge.

Tamil Nadu is emerging as a key growth centre, backed by Chennai’s established automotive industry, skilled workforce, and expanding electric vehicle manufacturing base. New investments in battery and motor production, along with plans to improve charging infrastructure, are supporting the state’s role in India’s two-wheeler industry.

Investor and Analyst Perspective on Motorcycle Scooter and Electric Growth

Motorcycles accounted for 74.05% of India's two-wheeler market in 2025, while scooters are forecast to grow at a 6.05% CAGR through 2031, providing distinct benchmarks for assessing vehicle segments. Separately, the report projects electric propulsion to grow at a 7.02% CAGR through 2031, with battery raw-material price volatility and limited charging infrastructure outside metros remaining constraints to adoption.

Retail and Business Strategy for Entry Level and Electric Buyers

In India, vehicles priced below USD 1,000 accounted for 48.25% of the market in 2025, making affordability a relevant consideration when assessing the retail product mix. Within electric two-wheelers, the report identifies the 1.1-3.0 kW class as the fastest-growing motor-power band at a 7.16% CAGR, supported by a balance of usable speed, affordable battery capacity and suitability for delivery fleets.

India Two-Wheeler Industry Segmentation

By Vehicle Type

  • Motorcycles
  • Scooters

By Propulsion

  • Internal Combustion Engine (ICE)
  • Electric

By Engine Capacity / Motor Power

  • Internal Combustion Engine
  • Electric

By Price Band

  • Up to USD 1,000
  • USD 1,000–1,500
  • USD 1,501–2,000
  • USD 2,001–3,000
  • USD 3,001–5,000
  • Above USD 5,000

By End User

  • Business-to-Consumer (B2C)
  • Business-to-Business (B2B)

By Sales Channel

  • Online
  • Offline

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/india-two-wheeler-market?utm_source=globenewswire

India Two-Wheeler Companies

  • Hero MotoCorp Ltd.
  • Honda Motorcycle and Scooter India Pvt. Ltd.
  • TVS Motor Company Ltd.
  • Bajaj Auto Ltd.
  • Suzuki Motorcycle India Pvt. Ltd.
  • Royal Enfield
  • Yamaha Motor India Pvt. Ltd.
  • Piaggio Vehicles Pvt. Ltd.
  • Mahindra Two Wheelers Ltd.
  • India Kawasaki Motors Pvt. Ltd.
  • Ampere Vehicles Pvt. Ltd.
  • Ather Energy Pvt. Ltd.
  • Okinawa Autotech Pvt. Ltd.
  • Ola Electric Mobility Pvt. Ltd.
  • Revolt Intellicorp Pvt. Ltd.
  • Kinetic Green Energy and Power Solutions Ltd.
  • Simple Energy Pvt. Ltd.

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