India to surpass China this year to become the world’s largest two-wheeler (2W) market, says data
According to data released by the Society of Indian Automobile Manufacturers (SIAM) on Wednesday, the total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles in July reached 24,37,138 units.
The breakdown of sales for the month is as follows:
- Passenger vehicles: 3,41,510 units
- Three-wheelers: 59,073 units
- Two-wheelers: 14,41,694 units
The two-wheeler segment notably experienced a significant growth of 12.5 percent in July compared to the same month last year, highlighting a strong recovery and demand in this category. The overall figures reflect a robust performance across various vehicle segments, signaling a positive trend in the Indian automobile industry.
“The above average rainfall coupled with the upcoming festive season is likely to again propel growth in the short term. In addition, enabling budget announcements that emphasize overall economic growth with fiscal support for infrastructure and the rural sector should augur well for the auto sector in the medium term,” said Vinod Aggarwal, President, SIAM.
“Three Wheelers posted a growth of 5.1 percent compared to July last year, with sales of 0.59 lakh units in July 2024, which is close to the peak of 2018-19,” said Rajesh Menon, Director General, SIAM.
In July 2024, the passenger vehicle segment de-grew compared to July 2023, posting sales of about 3.42 lakh units.
Another industry report last week said that India is projected to surpass China this year to become the world’s largest two-wheeler (2W) market, driven by robust economic growth, consumer preference for 2Ws for short-distance commutes, and increasing 2W demand in the shared mobility space.
The electric E2W market is also growing at a rapid clip, with 2024 sales penetration expected to be 1.5 times that of four-wheeler passenger EVs, according to Counterpoint Research. The 2W market is heading towards maturity, but the adoption of electrification is expected to rise significantly, particularly after 2025.
Among the top 10, three E2W brands are from India — Ola Electric, TVS Motor, and Ather Energy — reflecting India’s emerging presence in the E2W market. Ola and Ather are also greenfield “EV-first” 2W companies challenging the incumbents such as TVS, Hero, and Bajaj, according to the report.
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