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.

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The Indian two-wheeler industry is projected to achieve a moderate wholesale volume growth of 3–5 percent in FY2027, according to the latest sector update by credit rating agency ICRA.

While the sector enters the new fiscal year on a strong footing, the pace of growth is expected to normalise due to macroeconomic factors, a high base effect and geopolitical uncertainties.

Despite a more conservative outlook for the upcoming fiscal year, the industry continues to demonstrate baseline resilience, backed by healthy retail momentum and expanding international footprints.

The company stated that data from May 2026 highlights robust near-term demand dynamics across domestic and international channels. Domestic wholesales clocked 15.7 percent YoY growth, reaching 1.9 million units in May 2026. This volume was primarily driven by improved affordability stemming from GST 2.0 reforms and advanced consumer buying ahead of announced price hikes by original equipment manufacturers (OEMs).

On the other hand, retail sales maintained a steady upward trajectory, expanding 7.5 percent YoY during the month. Retail demand was supported by seasonal marriage season purchases and a highly diversified product mix spanning entry-level commuter options and aspirational premium models.

Exports surged 31.3 percent YoY in May 2026, which follows a strong performance in FY2026, where overall exports expanded by 23.3 percent, driven by expanding OEM product portfolios and a broader global acceptance of Indian two-wheeler brands.

The electric two-wheeler (E2W) market continues to outpace the broader internal combustion engine (ICE) segments in terms of growth velocity with EV penetration touching 8.9 percent (172,148 units) in May 2026, up 71.7 percent YoY.

This sharp rise in volume reflects improving ecosystem support, such as charging infrastructure expansion, and a structural shift in consumer acceptance toward electric mobility alternatives.

ICRA's moderate 3–5 percent growth projection for FY2027 balances several conflicting operational variables. Tailwinds includes sustained demand from ongoing GST rationalisation benefits and strong vehicle replacement demand from urban and semi-urban fleets.

On the other hand, growth could be constrained by extreme heatwaves that temporarily lower showroom footfalls, localised supply constraints for specific high-demand models and inflation-driven vehicle price adjustments.

Furthermore, a potentially weak or disrupted monsoon season triggered by El Niño patterns presents a risk to rural purchasing power.  Lastly, ongoing geopolitical tensions in West Asia remain a critical monitorable, as further escalation could destabilise global shipping lanes, disrupt manufacturing supply chains and increase raw material cost structures.

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Bengaluru-headquartered electric vehicle manufacturer Ultraviolette Automotive has announced a strategic alliance with Elektrorider, appointing them as the official importer and distributor for Hungary, Croatia, Slovakia, Romania, Slovenia and Czechia. The partnership marks a major phase in Ultraviolette’s international expansion, bringing its total footprint to 18 European countries.

Through this distributor agreement, Ultraviolette will introduce its high-performance electric motorcycle lineup – specifically the F77 MACH 2 and F77 SuperStreet – to the Central and Eastern European (CEE) markets. Elektrorider will leverage its existing retail network in electric two-wheelers and scooters to oversee sales, test rides, spare parts logistics and aftersales service.

The expansion leverages the distinct aerodynamic styling and performance architecture of Ultraviolette's core platforms. The design language emphasises fully faired battery enclosures, exposed trellis subframes and sharp geometry optimised for sport riding.

Ultraviolette has established market-specific, introductory on-road pricing structures across the CEE region for its high-tier RECON editions finished in Turbo Red.

Narayan Subramaniam, CEO and Co-Founder, Ultraviolette, said, “We are proud to Make in India for the World and it is immensely encouraging that the response to the F77 across key European markets has been positive. Customers have embraced our vision of performance electric mobility with remarkable enthusiasm."

"Expanding into Hungary and the Central and Eastern European region marks a significant milestone in our journey, given the region’s strong motorcycling culture and passionate rider communities. We believe the F77, with its bold design, advanced technology and exhilarating performance, will resonate strongly with riders seeking a new generation of motorcycling experiences,” said Subramaniam.

Attila Pavuk, Chief Operating Officer, Elektrorider, added, “The F77 combines performance, technology, design, and emotion in a truly unique way. Our team has completed dedicated sales, technical and after-sales training, and we are ready to support customers from the first test ride through sales, spare parts, service, and long-term technical assistance. Our short-term goal is to give as many riders as possible the opportunity to experience the future of electric motorcycling, a future that is already here.”

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Amazon India, one of the leading online marketplaces, has announced that its two-wheeler store on Amazon.in has achieved a 2x year-on-year growth in sales. The surge in demand is primarily led by consumers in Tier 2 and Tier 3 cities who are increasingly buying premium and electric vehicles alongside standard commuter motorcycles.

The e-commerce platform currently offers a selection of more than 20 brands such as Triumph, KTM, Royal Enfield, Bajaj Auto, Ather Energy and Hero MotoCorp across the electric, premium and commuter segments. The digital storefront is supported by an integrated network of more than 3,000 original equipment manufacturer (OEM) authorised dealers.

The platform’s sales data highlights that online two-wheeler procurement has become a notable trend outside metropolitan areas.

Approximately two in three two-wheeler buyers on Amazon.in come from Tier 2 and Tier 3 cities. In terms of electric two-wheelers, the consumer share from beyond the metros rises to seven in 10 buyers. Within the last 12 months, customers from more than 2,300 Tier 3 towns purchased a two-wheeler for the first time on the platform.

In terms of geography, Kakinada, Tirupati, and Nellore registered the highest acceleration in the South, showing up to a 12x increase in bookings. Purnia and Samastipur emerged as new demand pockets in the East, growing up to 7x. While bookings from Nagaur, Jind, Jamnagar, Bilaspur, and Rajkot grew up to 6x in the West and North.

Moreover, consumers are increasingly selecting models equipped with premium features, connected technology, advanced safety systems and long-term ownership value. This behavioural shift is reflected across multiple product categories with the average price of a two-wheeler purchased on the platform now exceeding INR 100,000. The premium segment recorded the fastest acceleration, growing nearly 5x year-on-year.

Commuter bike sales more than doubled, while internal combustion engine (ICE) scooters grew 1.5x over the same period. In the electric two-wheeler segment, the INR 100,000 to INR 150,000 price segment now accounted for over half of all EV demand on the platform, moving consumer interest away from entry-level options.

To build customer confidence, every dealer operating on Amazon.in is OEM authorised. This structure guarantees that buyers receive genuine products backed by original manufacturer warranties.

The digital platform allows customers to shop 24x7, compare various brands and fuel types, read verified owner reviews, and view specific ex-showroom prices mapped to their exact pin code. Payments are fully digitised using credit cards, debit cards, UPI, and net banking. Transactions made via credit cards incur zero Merchant Discount Rate (MDR) charges and feature fraud protection.

Amazon India has deployed several AI-powered features and data tools to compress the vehicle research cycle and assist customers with their purchasing decisions.

Aman Lohan, Director of Home, Kitchen, and Outdoors at Amazon India, said, "The two-wheeler buying journey in India is often long and can get overwhelming with multiple options, fuel types and price points to consider. This feels more restrictive when you have limited selection, especially beyond the metros. For customers, Amazon.in brings together the largest selection by brands, price points and fuel types in one place with full price transparency and the convenience of digital payments. For brands, it expands their reach. Over the last two years, we have built the selection, the tools and the reach to serve both and will continue to expand through the year."

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Honda Motorcycle & Scooter India (HMSI) has expanded its premium BigWing lineup with the 2026 CB750 Hornet E-Clutch and XL750 Transalp E-Clutch, marking the first integration of E-Clutch technology into the 755-cc platform. The Gold Wing also receives a new colour option, while the CBR1000RR-R Fireblade SP remains the flagship supersport model, strengthening HMSI’s portfolio across street naked, adventure touring, luxury touring and high-performance categories.

The CB750 Hornet E-Clutch combines convenience with spirited riding, powered by a 755-cc engine producing 67.5 kW and 75 Nm of torque. Key features include Showa 41 mm upside-down front forks, dual 296 mm discs, a five-inch TFT display with RoadSync and multiple riding modes. The E-Clutch system enhances the streetfighter character for both city and winding roads.

The XL750 Transalp E-Clutch shares the same 755-cc engine and adds E-Clutch technology to Honda’s adventure touring platform for improved comfort across diverse terrains. It features Showa SFF-CA front suspension, a five-inch TFT screen with RoadSync, multiple riding modes including Gravel and a dual LED headlamp setup, making mixed-riding conditions more convenient.

The 2026 Gold Wing continues luxury touring with a new paint scheme, an 1833-cc six-cylinder engine and a seven-speed dual clutch transmission with reverse mode. Premium amenities include an electronically adjustable windscreen, wireless Apple CarPlay and Android Auto, an advanced audio system and an airbag. The CBR1000RR-R Fireblade SP remains track focused with a 1,000-cc engine producing 160 kW, Öhlins suspension, Brembo brakes and an Akrapovič exhaust.

Price and colour details:

Tsutsumu Otani, President & CEO, Honda Motorcycle & Scooter India, said, “With the introduction of E-Clutch, Honda is further enhancing the premium motorcycling experience by offering greater comfort, ease of use and riding confidence. Designed to support customers across diverse riding environments – from everyday urban commuting to long-distance touring – this technology reflects Honda’s continued commitment to delivering advanced engineering and meaningful value to riders in India.”

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