Indian two-wheeler production and plant capacity analysis
Production reduced by economic slowdown and COVID-19, increase in exports and electric two-wheelers
2020/07/14
- Summary
- Analysis of Indian Two-Wheeler Production
- Two-wheeler OEM's production and export analysis
- Hero MotoCorp Ltd.
- Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI)
- Bajaj Auto Ltd.
- TVS Motor Company
- India Yamaha Motor Pvt. Ltd.
- Royal Enfield (Unit of Eicher Ltd.)
- Suzuki Motorcycle India Private Limited (SMIPL)
- Piaggio Vehicles Pvt. Ltd. (PVPL)
- Mahindra Two Wheelers Ltd.
- Electric two-wheelers
- Premium motorcycles
Summary
India is the largest manufacturer of two-wheelers in the world.
At present two-wheeler production accounts for 80% of total automotive production in India. India two-wheeler producers have more than 25 million units of installed production capacity.
Vehicle production in India (FY2019-20)
| Category | Unit production (thousands) |
|---|---|
| Two-Wheelers | 21,036 |
| Passenger Vehicles | 3,434 |
| Three-Wheelers | 1,133 |
| Commercial Vehicles | 752 |
 |
| Vehicle production in India (FY2019-20) (Source: Created by MarkLines based on various press releases and sources) |
Indian two-wheeler production/sales/export volume (Units)
| 2018-2019 | 2019-2020 | YoY Change | |
|---|---|---|---|
| Production | 24,499,777 | 21,036,294 | -14.1% |
| Domestic Sales | 21,179,847 | 17,417,616 | -17.8% |
| Exports | 3,280,841 | 3,520,376 | 7.3% |
The two-wheeler market is primarily comprised of the motorcycle and scooter segments. In the domestic market, two-wheeler industry production decreased to 21 million units in FY 2019-20 from 24.5 million in FY 2018-19. Domestic sales plunged by 18% to 17.4 million units, while exports were strong, increasing by 7.3% to 3.5 million.
Motorcycle sales in India are affected by increases in insurance premiums, the migration to new emissions norms, and poor economic conditions. During the last quarter of FY 2019-20, the industry suffered significantly from the Coronavirus pandemic, which resulted in a decrease in foot traffic to dealerships and economic uncertainty for most common people. Towards the end of March 2020, the Government of India announced the complete lockdown against the COVID-19 pandemic which resulted in the disruption of sales and production volumes and further adversely impacted the already declining two-wheeler market in India.
For data on monthly volumes of motorcycles, please refer to the information below.
・India’s motorcycle production volume
・Thailand’s motorcycle registration volume
Related Reports:
The global market for motorcycles: India, China and ASEAN countries (Jul. 2020)
India: Muted market growth and jump to BS-VI regulation (Sep. 2019)
Indian two-wheeler production and plant capacity analysis (Jun. 2019)
Tokyo Motorcycle Show 2019: EV motors and lightweight components (Apr. 2019)
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