India Overtakes China in Global Two-Wheeler Market

IANS

India has made a significant stride in the global automotive industry by surpassing China to become the world’s largest two-wheeler market. This shift is primarily attributed to an increase in demand from rural areas, which has been bolstered by favourable monsoon conditions and government initiatives aimed at rural development. The data, released by Counterpoint Research, shows that two-wheeler sales globally grew by 4% year-on-year in the first half of 2024.

While growth was observed in India, Europe, North America, Latin America, and the Middle East and Africa, China and Southeast Asia experienced a decline. Soumen Mandal, a senior analyst, highlighted that India’s two-wheeler market saw a remarkable 22% YoY growth in the first half of this year. This strong performance allowed India to surpass China and become the world’s largest two-wheeler market, Mandal stated.

The second quarter of this fiscal year saw strong double-digit growth in India’s two-wheeler market. In contrast, China’s market, where two-wheelers under 125cc remain popular, is experiencing a shift. Consumers are increasingly opting for e-bicycles over motorcycles and scooters for daily commuting, leading to a temporary slowdown in the Chinese two-wheeler market, particularly in the electric segment.

In Southeast Asia, major markets such as Indonesia, Vietnam, the Philippines, Thailand, and Malaysia saw a decline in two-wheeler sales. This decline is attributed to geopolitical trade tensions, stricter lending criteria, and cautious consumer spending amid economic uncertainty.

IANS

The global two-wheeler market is dominated by a few key players, with the top-10 manufacturers capturing over 75% of sales during H1 2024. Honda maintained its leading position, followed by Hero MotoCorp, Yamaha, TVS Motor, and Yadea. TVS Motor emerged as the fastest-growing brand, with a 25% YoY increase, while Yadea experienced the most significant decline, slipping to fifth position.

The two-wheeler market is also witnessing a shift towards electrification. Neil Shah, Vice President of Research, predicts that by 2030, four out of 10 two-wheelers sold will be electric. This shift is also accelerating the adoption of embedded cellular connectivity in the two-wheeler segment. As the automotive industry advances toward C-V2X technology, the two-wheeler segment will follow suit, Shah noted.

This development in India’s two-wheeler market is reminiscent of the country’s growth in the retail sector. For instance, Nykaa, India’s leading omnichannel consumer-tech company, reported a consolidated Gross Merchandise Value (GMV) of over Rs. 12,446 crores, with net revenue of Rs. 6,386 crores, representing a 24% increase over FY23. The company serviced over 33 million customers across beauty and fashion, with nearly 2 billion annual visits.

In the fashion industry, brands like Forever 21 and Vero Moda are offering both casual and formal wear, targeting young, fashion-conscious customers. These brands are constantly updating their catalogs, ensuring their patrons always have new stock to choose from.

The FMCG market also expanded by 10% in January, indicating that the third Covid wave buoyed consumption for daily essentials and groceries. Despite restrictions on store timings and mobility in certain markets, the impact on business has been the least in the third Omicron wave compared to the previous two.

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