India’s two-wheeler market is set to reach new heights in the coming year, with projected growth of 8-10%. This follows an estimated 12-14% increase this fiscal, according to a report released on Friday.
The market is expected to surpass its previous record of over 24 million units sold in 2019, driven by factors such as strong rural demand, growing interest in premium motorcycles in urban areas, better export opportunities, and the rise of electric two-wheelers (e2Ws).
Revenue for two-wheeler manufacturers is expected to grow by 10-12% next fiscal, slightly slower than the 16% growth forecast for this year. The surge in sales volumes, particularly of premium models with higher profit margins, will contribute to this growth.
Operating margins for original equipment manufacturers (OEMs) are projected to hit a decade-high of around 15% this fiscal and remain steady next year, an improvement from the 14% average over the past three years. Higher exports and the increasing popularity of premium models will boost profitability.
Domestic sales, which account for nearly 85% of the market, are expected to grow by 7-8%, while exports may rise by 11-12%, driven by strong demand from emerging markets like Africa and Latin America. Motorcycles continue to dominate, with premium and executive models making up over 50% of the market.
This fiscal, large-engine scooters have also seen a 27% growth, with similar double-digit growth expected in the next year.
