The two-wheeler industry in India is expected to sustain a steady volume growth rate of around seven to nine percent in FY2024-25 as far as the domestic market as well as the export markets are concerned. 

The growth in FY2024-25 is expected to be driven by higher electric vehicle (EV) penetration in the market, according to a report released by CareEdge Ratings. A big catalyst in higher EV penetration in the market is going to be the Electric Mobility Promotion Scheme 2024 (though only till July 2024 and likely to get an extension), expectation of interest rate cuts in second half of FY2024-25, strong demand for new model launches, recovery in exports from its low base of FY2023-24 and favourable monsoon which would improve rural consumer sentiment and income levels. 

Pointing out at a combination of factors behind the growth of two-wheelers in such as traction in EV volumes, wider range of models and new launches, the report highlights a robust double-digit growth pace in each of the two quarters that ended on March 2024 on a year-on-year basis in FY2023-24, the report states the restriction in the automotive segment growth in the first half of FY2023-24 was on account of the increase in vehicle prices post the implementation of the phase-II of the BS VI emission norms, higher interest rates and stressed rural incomes. Sales revived in the second half of the respective fiscal on the back of festive season demand and uptick in rural sentiments.

“Post-covid, sales volume of two-wheelers had consistently declined during FY20, FY21 and FY22 before starting to recover from FY23, with sales momentum continuing in FY24 as well. CareEdge Ratings anticipates two-wheeler sales volume growth to continue in FY25 and it would be more driven by improved domestic sales, higher EV sales, launch of CNG powered two-wheelers and good traction in executive and premium segment motorcycles.” said Hardik Shah, Director, CareEdge Ratings.

In FY2022-23, the Indian two-wheeler industry recorded sales of 19.51 million units, an eight percent growth compared to the previous fiscal year’s 18.01 million units. In FY2023-24, the industry continued its upward trajectory, achieving 9.8 percent growth with a total sales volume of 21.43 million units. However, this was still short of the peak sales volume recorded in FY19 when annual sales volume had reached 24.46 million units, as per the report.

In FY2023-24, the domestic two-wheeler industry witnessed total sales volume of 17.97 million units, reflecting a growth rate of 13 percent. Exports volume experienced a decline of five percent even though it recovered from the low of FY2022-23. The decline in exports was attributed to challenges in the African markets, which traditionally accounted for a significant portion of India’s two-wheeler exports. 

EVs propel two-wheeler growth 

The overall volume growth in FY2022-23 and FY2023-24 was supported by the increasing demand for electric two-wheelers, according to the CareEdge Ratings report. In FY2022-23, electric two-wheeler sales reached approximately 0.73 million units, accounting for 4.54 percent of total two-wheeler sales (compared to 1.87 percent in the previous year), reflecting a remarkable year-on-year growth of 188 percent albeit on a low base. 

Continuing the positive trend, electric two-wheeler sales grew by around 30 percent in FY2023-24 surpassing volume of 0.94 million units. The demand for electric two-wheelers is driven by a shift in consumer preferences towards options that offer lower fuel costs, reduced maintenance, and lower servicing requirements compared to internal combustion engine (ICE) models. The government’s FAME II programme – till FY2023-24 – has made EV ownership more affordable, thereby contributing to volume growth.

The Indian Government’s newly introduced Electric Mobility Promotion Scheme 2024 (EMPS 2024) has continued to bolster electric two-wheeler sales in FY2024-25 – that is until July 2024. Despite the higher initial cost of electric two-wheelers, consumers are increasingly making the switch to EVs, the report pin points.

Segment wise, motorcycles have consistently dominated the market, contributing to majority of the two-wheeler sales. Sales volumes of motorcycles grew by eight percent in FY2023-24 and that of scooters grew by 13 percent during the respective period. This segment-wise growth trend is expected to continue in FY2024-25. 

With motorcycles continuing to be popular due to their superior fuel efficiency, cost-effectiveness, and versatility, scooters have also gained traction among urban commuters. 

Image for representative purpose only.

TVS Motor Company, a leading manufacturer of two-wheelers and three-wheelers, has attained two new milestones for the TVS Apache motorcycle brand.

First introduced in 2005, the sporty TVS Apache motorcycle marked the company’s entry in the premium segment. It was targeted towards young customers and took inspiration from TVS Racing heritage. The company has announced that in addition to celebrating the 20th anniversary milestone for the Apache motorcycle, the brand has also crossed the 6 million sales milestone.

The TVS Apache is currently sold in more than 60 countries, including LATAM, Africa and Europe. Furthermore, TVS Apache is said to be the first two-wheeler brand in the country that offers factory customisation build-to-order (BTO) option.

Sudarshan Venu, Managing Director, TVS Motor Company, said, "We are immensely grateful to the over 6 million passionate riders of TVS Apache for their unwavering trust and enthusiasm over the last 20 years. Their love for performance and adrenaline has propelled TVS Apache to become one of the fastest-growing sports motorcycle brands globally. This milestone belongs to every member of the TVSM family – our engineers, designers, factory teams, dealers, suppliers and partners – who push the limits of innovation every day. TVS Apache’s enduring success emanates from cutting-edge racing technology, precision engineering, and unmatched performance. It is a testament to our relentless commitment to empowering the new generation of young riders who live and breathe the thrill of motorcycling.”

Vimal Sumbly, Head – Premium Business, TVS Motor Company, said, “TVS Apache has been at the forefront of premium motorcycling, embodying our strategic vision of building a brand rooted in racing excellence and innovation. Over the past 20 years, Apache has redefined performance motorcycling and has created a thriving ecosystem through the Apache Owners Group, uniting passionate riders globally. Crossing the 6 million customer milestone is a testament to the brand’s relentless pursuit of excellence, pioneering segment-first innovations, and delivering unparalleled consumer experiences. As we move forward, we remain committed to pushing the boundaries of performance, technology, and community engagement to shape the future of premium motorcycling. Apache is more than a motorcycle – it’s a movement, a legacy and a community of racing enthusiasts.”

Honda Motorcycle & Scooter India (HMSI), a leading manufacturer of scooters and motorcycles in the country, has announced its wholesales numbers for March 2025 and FY2025.

The company sold a total of 427,448 two-wheelers last month, which includes 401,411 units in the domestic market and 26,037 units exported.

For FY2025, the company shared it recorded 19 percent YoY growth with sales of 5.83 million two-wheelers, which includes 5.32 million units in the domestic market and 505,012 units exported.

During the fiscal, the company expanded its alternative energy portfolio with the introduction of the Activa e: & QC1 in the electric scooter segment and the introduction of the CB300F flex-fuel motorcycle, which is the country’s first 300cc flex-fuel motorcycle.

To support its e-scooter, the company also joined hands with Honda Power Pack Energy India for its battery swapping network.

Hero MotoCorp, the world’s largest two-wheeler manufacturer, has announced its wholesales for March 2025 and FY2025.

The company sold a total of 549,604 two-wheelers last month, which was 12 percent higher as compared to 490,415 units last year. This includes 510,086 two-wheelers in the domestic market and 39,518 units exported, which was higher 11 percent YoY and 26 percent YoY, respectively.

For FY2025, the company clocked 5.89 million two-wheelers, which was 5 percent higher YoY. On one hand, while the company increased sales of motorcycles by 5.51 percent YoY, scooter sales declined by 2 percent YoY.

In the domestic market, the company sold 5.6 million two-wheelers, up 3.53 percent, as against 5.42 million units last year. Exports grew by 43 percent at 287,429 units, as against 200,923 units shipped last year.

registered sales of 5,899,187 units (5.9 million) in FY’25 (April 2024 to March 2025).

During the year, the company’s electric vehicle portfolio grew by 200 percent, albeit from a low base.  

Recently, Hero MotoCorp also marked its entry in the electric three-wheeler space with the acquisition of a substantial stake in Delhi-NCR-based Euler Motors.

Bajaj Auto, one of the leading two-wheeler and three-wheeler manufacturers globally, has achieved a new sales milestone for its popular Pulsar brand.

The company has announced that after a period of 24 years, the Pulsar motorcycle has crossed 20 million sales milestone, with the last 10 million unit sales coming in just six years.

Launched in 2001, the Pulsar was amongst the first made-and designed-in-India for India, sporty motorcycle. The company has continued to evolve and expand the Pulsar brand across various price points. Bajaj Auto shared that it was in 2018 that the Pulsar brand crossed the 10 million unit sales milestone, a period of 17 years from the launch.

The Pulsar is now sold across the globe including Latin America, Southeast Asia and Middle East among others.

As part of the milestone celebration, Bajaj Auto has announced Special Celebration prices on select models with saving of up to INR 7,300.

Sarang Kanade, President, Motorcycle Business Unit, Bajaj Auto, said, “Pulsar has always been more than a motorcycle – it's a powerhouse of energy, performance and a ‘Definitely Daring’ attitude. Reaching the 2-crore milestone in more than 50 countries is a badge of honor of the unflinching love and trust of Pulsarmaniacs everywhere. This celebration isn't ours alone – it's for each one of the riders who have made Pulsar a global phenomenon.”