The two-wheeler industry in India is expected to sustain a steady volume growth rate of around seven to nine percent in FY2024-25 as far as the domestic market as well as the export markets are concerned. 

The growth in FY2024-25 is expected to be driven by higher electric vehicle (EV) penetration in the market, according to a report released by CareEdge Ratings. A big catalyst in higher EV penetration in the market is going to be the Electric Mobility Promotion Scheme 2024 (though only till July 2024 and likely to get an extension), expectation of interest rate cuts in second half of FY2024-25, strong demand for new model launches, recovery in exports from its low base of FY2023-24 and favourable monsoon which would improve rural consumer sentiment and income levels. 

Pointing out at a combination of factors behind the growth of two-wheelers in such as traction in EV volumes, wider range of models and new launches, the report highlights a robust double-digit growth pace in each of the two quarters that ended on March 2024 on a year-on-year basis in FY2023-24, the report states the restriction in the automotive segment growth in the first half of FY2023-24 was on account of the increase in vehicle prices post the implementation of the phase-II of the BS VI emission norms, higher interest rates and stressed rural incomes. Sales revived in the second half of the respective fiscal on the back of festive season demand and uptick in rural sentiments.

“Post-covid, sales volume of two-wheelers had consistently declined during FY20, FY21 and FY22 before starting to recover from FY23, with sales momentum continuing in FY24 as well. CareEdge Ratings anticipates two-wheeler sales volume growth to continue in FY25 and it would be more driven by improved domestic sales, higher EV sales, launch of CNG powered two-wheelers and good traction in executive and premium segment motorcycles.” said Hardik Shah, Director, CareEdge Ratings.

In FY2022-23, the Indian two-wheeler industry recorded sales of 19.51 million units, an eight percent growth compared to the previous fiscal year’s 18.01 million units. In FY2023-24, the industry continued its upward trajectory, achieving 9.8 percent growth with a total sales volume of 21.43 million units. However, this was still short of the peak sales volume recorded in FY19 when annual sales volume had reached 24.46 million units, as per the report.

In FY2023-24, the domestic two-wheeler industry witnessed total sales volume of 17.97 million units, reflecting a growth rate of 13 percent. Exports volume experienced a decline of five percent even though it recovered from the low of FY2022-23. The decline in exports was attributed to challenges in the African markets, which traditionally accounted for a significant portion of India’s two-wheeler exports. 

EVs propel two-wheeler growth 

The overall volume growth in FY2022-23 and FY2023-24 was supported by the increasing demand for electric two-wheelers, according to the CareEdge Ratings report. In FY2022-23, electric two-wheeler sales reached approximately 0.73 million units, accounting for 4.54 percent of total two-wheeler sales (compared to 1.87 percent in the previous year), reflecting a remarkable year-on-year growth of 188 percent albeit on a low base. 

Continuing the positive trend, electric two-wheeler sales grew by around 30 percent in FY2023-24 surpassing volume of 0.94 million units. The demand for electric two-wheelers is driven by a shift in consumer preferences towards options that offer lower fuel costs, reduced maintenance, and lower servicing requirements compared to internal combustion engine (ICE) models. The government’s FAME II programme – till FY2023-24 – has made EV ownership more affordable, thereby contributing to volume growth.

The Indian Government’s newly introduced Electric Mobility Promotion Scheme 2024 (EMPS 2024) has continued to bolster electric two-wheeler sales in FY2024-25 – that is until July 2024. Despite the higher initial cost of electric two-wheelers, consumers are increasingly making the switch to EVs, the report pin points.

Segment wise, motorcycles have consistently dominated the market, contributing to majority of the two-wheeler sales. Sales volumes of motorcycles grew by eight percent in FY2023-24 and that of scooters grew by 13 percent during the respective period. This segment-wise growth trend is expected to continue in FY2024-25. 

With motorcycles continuing to be popular due to their superior fuel efficiency, cost-effectiveness, and versatility, scooters have also gained traction among urban commuters. 

Image for representative purpose only.

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Zelio E-Mobility has announced its first major sports partnership, joining Punjab Kings as the team’s Official EV Partner for the 2026 Indian Premier League (IPL) season. The agreement includes branding rights, digital media integration and in-stadia activations throughout the tournament. The company intends to use the platform to increase brand awareness in Tier 2 markets and support its expansion across India.

As part of the association, the manufacturer will showcase its X Men 2.0 and the newly released X Men+ models. These electric two-wheelers will be featured across various team touchpoints, including jersey branding and social media campaigns. The partnership follows Zelio E-Mobility’s recent initial public offering, which raised INR 783.4 million to fund its growth operations.

The company currently maintains a network of over 350 dealer outlets across 20 states and union territories. Its portfolio includes electric two-wheelers under the Zelio brand and the Tanga line of e-rickshaws, serving a total customer base of more than 200,000 riders. The management indicated that the partnership aligns with a strategy to invest in brand equity alongside its manufacturing scaling.

Kunal Arya, Managing Director, Zelio E-Mobility, said, “Cricket continues to be one of the most powerful platforms to connect with audiences across India. Our association with Punjab Kings allows us to engage with a wide consumer base while strengthening Zelio’s brand presence in a culturally relevant environment. As we scale our operations, such partnerships play a role in aligning visibility with growth momentum.”

Saurabh Arora, Chief Commercial Officer, Punjab Kings, said, “We are delighted to welcome Zelio Electric Scooters as our Official EV Partner for the season. This partnership reflects the growing synergy between sport and sustainable innovation. As a franchise, we are committed to aligning with forward-looking brands that resonate with today’s consumers, and Zelio’s focus on electric mobility and accessibility makes them a strong strategic fit for Punjab Kings. Through this association, we aim to create meaningful fan engagement while contributing to the broader narrative around clean and responsible mobility.”

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Pune-headquartered two-wheeler and three-wheeler major Bajaj Auto has announced a price reduction for the Dominar 400, making the motorcycle more accessible at INR 203,214 (ex-showroom Delhi).

The updated model is equipped with a 350cc engine and is priced approximately INR 37,000 lower than the previous iteration. This adjustment results from a lower upfront cost and the passing of GST benefits to customers without altering the vehicle's touring capabilities.

The motorcycle is designed to function as an all-rounder, suitable for both daily commuting and long-distance travel.

By repositioning the Dominar 400, Bajaj Auto aims to increase the adoption of sports and touring motorcycling in India. The mechanical specifications are intended to maintain the power and endurance associated with the Dominar nameplate while lowering the total cost of ownership for enthusiasts.

This strategic shift follows the company's objective of democratising the touring segment. The new price point is expected to attract riders transitioning from lower-capacity segments who require a vehicle capable of sustained high-speed travel and comfort over distance.

Sarang Kanade, President - MCBU, Bajaj Auto, said, "Dominar has always stood for our touring DNA - powerful, capable, and built for the long road. With the new Dominar 400 with 350cc engine we are staying true to that promise while making it significantly more accessible. Riders get the same Dominar experience they love, but now with a much lower cost of ownership, including meaningful savings. This is a decisive step towards democratizing touring and sports motorcycling in India."

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Ducati India has initiated the brand's global 100-year anniversary celebrations with an exclusive DRE Track Day at the Buddh International Circuit (BIC). Founded in 1926, the Italian manufacturer is marking a century of operations with a series of events intended to engage its community of owners.

The gathering at BIC saw over 70 riders participate in track sessions, while 150 enthusiasts attended a concluding evening event.

The track day provided owners with open sessions and three levels of structured training comprising Intro, Evo, and Master categories.

These were conducted by certified instructors including Rishi Agarwal, Anand Dharmaraj and Dilip Lalwani, the latter of whom holds the lap record for a production superbike at the circuit. The event was further highlighted by the first Indian performance from official Ducati stunt rider Emilio Zamora, who conducted a showcase for the assembled participants and their families.

Ducati has operated in India for over a decade and currently maintains a network of nine dealerships alongside two exclusive service workshops in Goa and Ahmedabad. The Indian market is a component of the brand's broader growth strategy in Asia, focusing on the premium motorcycle segment.

Bipul Chandra, Managing Director of Ducati India, stated, “As Ducati commemorates 100 years globally, India stands as a crucial market where the brand’s passion continues to intensify year after year. The DRE Track Day at BIC, coupled with Emilio Zamora’s electrifying performance and our sundowner celebration, is more than an event; it represents a celebration of our community, our rich heritage, and the distinctive thrill that defines every Ducati. Our Ducatisti are central to all our endeavours, and this centenary year is dedicated to fostering their connection with the brand through unforgettable experiences.”

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Pune-headquartered two-wheeler and three-wheeler major Bajaj Auto has reintroduced the Pulsar 180 motorcycle in India, citing consistent demand from riders and social media interest.

The reintroduction coincides with the 25th anniversary of the Pulsar brand, which launched in 180cc and 150cc formats in 2001. The updated model now features new graphics and integrated technology to align with current market standards.

The updated motorcycle incorporates a light-emitting diode (LED) headlamp, LED blinkers and a digital console with Bluetooth connectivity. Bajaj Auto has positioned the vehicle as a transition for owners of 150cc to 160cc motorcycles, providing a shift in performance and design. The Pulsar 180 is intended to maintain the balance between sport-oriented riding and daily commuting that established the nameplate's presence in the segment.

Engineering updates for this iteration focus on refined performance and modernised electronics while retaining the styling characteristic of the original series. The inclusion of connected features via the digital console allows for smartphone integration, a feature increasingly common in the performance commuter category.

Sarang Kanade, President, MCBU, Bajaj Auto, said, “The Pulsar brand has always stood for pushing limits and redefining performance motorcycling in India. The return of the Pulsar 180 is a response to the strong and consistent demand, as well as a groundswell of love on social media. As we mark 25 years of Pulsar, bringing back this iconic nameplate feels especially meaningful. Reimagined for a new generation, it continues to embody our ‘Definitely Daring’ philosophy combining power, precision and contemporary design to deliver an experience that is both exhilarating and accessible.”

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