India Overtakes China To Emerge As World's Leading Two-Wheeler Market

India emerged as the world's largest two-wheeler market in the first half of 2024, surpassing China which till now held that throne. The growth of this industry was mainly driven by increased rural demand supported by favourable monsoon conditions and rural development initiatives by the Government, as per data revealed by Counterpoint Research.

The research further revealed that in the global markets, demand for two-wheelers increased by 4 per cent year-over-year in the first half of 2024. While India, Europe, North America, Latin America, the Middle East, and Africa registered growth, oriental markets like China and Southeast Asia registered a decline. 

The Indian market continued its momentum with double-digit growth in the second quarter of this fiscal year, too. However, the Chinese two-wheeler market is witnessing a shift in dynamics. Consumers are increasingly preferring e-bicycles over traditional motorcycles and scooters for daily commuting. This transition has led to a slowdown in China's two-wheeler market, particularly affecting the electric segment.

Furthermore, Southeast Asian markets, including Indonesia, Vietnam, the Philippines, Thailand, and Malaysia, experienced a decline in sales too. This was mainly due to geopolitical trade tensions, stricter lending criteria, and cautious consumer spending amid economic uncertainty.

Industry data shows that the top 10 global two-wheeler manufacturers accounted for over 75% of sales during H1 2024. Honda continues to lead the charge globally followed by Hero MotoCorp, Yamaha, TVS Motor Company and Yadea.

Honda even managed to surpass Hero MotoCorp in terms of monthly sales for two consecutive months in August and September, while TVS Motor Company emerged as the fastest-growing brand with 25 per cent year-on-year growth, Chinese manufacturer Yadea saw its sales decline by 29 per in the global market.