India is the largest two-wheeler manufacturer in the world. The two-wheeler sector contributes to 7% of manufacturing GDP in India. It also contributes to 2% of GST revenues. It is estimated that India has around 190 million two-wheelers. At present two-wheeler production accounts for more than 80% of total automotive production in India. Indian two-wheeler producers have more than 25 million units of installed production capacity. The two-wheeler market is primarily comprised of the motorcycle and scooter segments.

Two-wheeler production/sales/export volume

  In FY 2020-21, Indian two-wheeler production down by 12.8% to 18.4 million units against 21 million units in FY 2019-20. Domestic sales plunged by 13.2% to 15.1 million units against 17.4 million units in the last year. Exports fall by 6.9% to 3.3 million units against 3.5 million units in FY 2019-20.

  In FY 2020-21, Indian two-wheeler industry witnessed one of the sharpest contradictions in demand. One of the primary reason of downfall in demand was the impact of Covid-19. Economic stress, high fuel prices, increase in two-wheeler price due to new regulations, increase in raw material costs and critical component shortage due to supply chain issues, also contributed in reduced demand for two-wheelers. However, a good monsoon helped the rural market to show strong growth. Demand for personal mobility was also increased due to spread of coronavirus. These factors helped in revival of two-wheeler sales in the last year.

Vehicle production in India (FY2020-21) (Source: Created by MarkLines based on various press releases and sources)	Indian two-wheeler production/sales/export volume (FY2020-21) (Source: Created by MarkLines based on various press releases and sources)

Vehicle production volume in India (thousand units)

(Source: Created by MarkLines based on various press releases and sources)

Two-wheeler production/sales/export volume (thousand units)

For data on monthly volumes of motorcycles, please refer to the information below.

• India's motorcycle production volume

  This report will cover recent developments in the Indian two-wheeler segment and trends of major two-wheeler manufacturers. The emerging manufacturers of electric two-wheelers in India will be discussed in the next report.

Related reports:
Indian Auto Component Industry Analysis (Jun. 2021)
India: Automotive sales impacted by Covid-19 (Mar. 2021)
Indian two-wheeler production and plant capacity analysis (Jul. 2020)
The global market for motorcycles: India, China and ASEAN countries（Jul. 2020）