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

Table of contents

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

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