Two-Wheelers to Drive India's Auto Growth with 14% Surge

The auto sector will see strong growth, driven by the 2W segment. The two-wheeler market is projected to expand at a 14% CAGR from FY24-27.
 

Demand for two-wheelers has jumped after slow growth between FY21 and FY23, partly due to the COVID-19 pandemic and increasing regulatory costs. Two-wheeler wholesale volumes increased 14% YoY in FY24 versus an 8% increase for passenger vehicles.
 

Two-wheeler volumes are 13% below the levels of FY19, while PVs are up by 25%. This reflects the continuing effects of the two-wheeler downturn; however, the outlook is positive. Two-wheelers are expected to grow at a CAGR of 14% during FY24-27. They are poised to drive industry growth, surpassing the slower rates for passenger vehicles (7%) and trucks (4%).
 

The increasing number of electric vehicles is changing the two-wheeler market.
 

E2Ws have also grown from 0.4% of total 2W sales in FY21 to 5% in early 2023. Though reduced government subsidies have brought down growth rates, E2Ws continue to be promising. EV market share in two-wheeler sales is likely to reach 7% in FY25, 10% in FY26, and 13% by FY27.
 

Before you go, don’t forget to check out the top 450cc Royal Enfield bikes in India.

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