India Beats China, Becomes World’s Largest Two-Wheeler Market

According to the data released by the Society of Indian Automobile Manufacturers (SIAM) and China Association of Automobile Manufacturers (CAAM), India has pipped China to become the world’s largest two-wheeler market. In FY’16-17, India sold close to 2 crore two-wheelers (1,99,28,784 units to be precise) in both the domestic and export market. Meanwhile, the accumulated sales of motorcycles in China stood at 1,68,00,000 units. This effectively puts the difference by approximately 31.28 lakh units. Moreover, two-wheeler sales in China fell by 10.8% compared to the previous year. The decline in motorcycle sales in that country can be attributed to the increase in car sales thanks to a booming economy.

In India, Hero has sold 66.6 lakh units in FY’16-17 and thus enjoys the lion’s share of the market. But with 50 lakh units sold, Honda is a close second. The Japanese brand seems to be on an onslaught when it comes to sales thanks to its flourishing scooter business. Honda is reportedly eyeing for 60 lakh unit sales in the present financial year (2017-18) and by mid-2017, the total production capacity is expected to reach 64 lakh units. Another Indian motorcycle major, Bajaj posted a sales figure of 32.1 lakh, a 4 per cent decline year-on-year. Niche brand Royal Enfield also grew 31 per cent on a year-on-year basis, with 6.6 lakh unit sales. Also read: Honda Set To Upstage Hero MotoCorp From Top Spot

Despite setbacks like demonetisation and the transition from BS-III to BS-IV norms, the motorcycle market in India is expected to grow even further, primarily because of the inherent advantage they have over cars - like the ease of maintenance, cheaper running costs, etc. The preference for two-wheelers can also be attributed to the country’s relatively young population and it is expected that the the Indian motorcycle market will grow by leaps and bounds. Since manufacturers have realised the potential of the Indian two-wheeler market, products from commuter bikes to superbikes are more readily available in the country. This has also resulted in more manufacturers setting up shop on our shores. Lately, Indian brands have been partnering with international manufacturers in a bid to bring more affordable motorcycles with the prime example being the upcoming BMW G 310 R. This trend also gives an opportunity for local manufacturers to borrow technology and introduce products derived from the bikes sold in the international market into their portfolio.