India two-wheeler market seen reaching $52.44 billion by 2035

India’s two-wheeler market is projected to grow from $32.53 billion in 2026 to $52.44 billion by 2035, driven by urban demand, premium bikes and scooters, and faster EV adoption. Scooters and electric two-wheelers are taking a larger share as the market shifts away from the traditional mass-market motorcycle model.

Why it matters: - India’s two-wheeler market remains the country’s largest personal mobility segment, so changes in this market affect millions of households and a broad supplier base. - The market’s growth is now tied less to basic commuter motorcycles and more to scooters, premium models, and electric vehicles. - Electric two-wheelers are becoming a major part of India’s EV transition, with implications for manufacturing, batteries, charging, and fleet operations.

What happened: - Market Research Future projects the India two-wheeler market will rise from $32.53 billion in 2026 to $52.44 billion by 2035. - The forecast implies a 5.45% CAGR over the 2026-2035 period. - Domestic wholesale volumes reached about 22 million units in FY2026, an all-time high. - North India led the market with an estimated 32% share in 2025, followed by West India at 26%. - Scooters hit a record 36% penetration in YTD FY26, or 38.4% when adjusted for unreported electric two-wheeler volumes. - Electric two-wheelers reached 970,993 retail registrations in H1 2026, up 53.3% from a year earlier. - Electric two-wheelers accounted for 8.17% of total two-wheeler sales, while overall EV penetration for FY2026 stood at 3.3%. - The 100-125cc segment still leads the market, while the 350cc category reached an all-time high of 5.7% of total volumes. - The report lists Hero MotoCorp, Honda Motorcycle & Scooter India, TVS Motor Company, Bajaj Auto, Suzuki Motorcycle India, Yamaha Motor India, Royal Enfield, Ola Electric, Ather Energy, Greaves Electric Mobility, River, and BGauss among the key players.

The details: - The market covers motorcycles, scooters, and mopeds powered by internal combustion engines and increasingly by electric powertrains. - Domestic volumes rose from about 18 million units in FY2024 to 22.3 million in FY2026. - Urbanisation and limited public transport options are supporting demand for personal mobility in metro and Tier-1 cities. - Rising disposable incomes are pushing consumers toward higher-displacement and feature-rich vehicles. - Government support through the FAME scheme, the PLI Auto programme, and GST rationalisation is supporting both conventional and electric two-wheeler demand. - Commercial demand from e-commerce, food delivery, and two-wheeler taxi operators is adding a strong B2B layer. - Scooters recorded a 4.1% CAGR from FY20 to FY25, outpacing the broader market. - Electric scooters hold about 68% share of the EV segment. - Electric motorcycles are projected to grow at about 20.2% CAGR through 2035. - The above 60V electric segment is expected to grow at 19.6% CAGR. - In metros and Tier-1 cities, 125cc scooters command 45%-50% share. - The premium segment is emerging as a major growth engine. - Offline dealer networks continue to dominate sales because buyers value test rides, financing, insurance, and documentation support. - The report can be purchased here. - More market details are available in the full report.

Between the lines: - The headline growth rate masks a deeper shift in mix, with demand moving toward scooters, electrification, and premium products rather than low-cost commuter bikes. - Hero MotoCorp still holds about 42% motorcycle share but has limited exposure to scooters and electric two-wheelers. - Hero MotoCorp’s H1 2026 EV registrations more than tripled to 104,417 units. - TVS Motor Company remained India’s largest electric two-wheeler manufacturer with 251,438 registrations in H1 2026, up 65.7% year on year. - TVS, Bajaj, Ather, and Hero accounted for 95.6% of incremental EV registrations in H1 2026. - Their combined EV market share rose from 66.6% to 76.7%. - A second layer of EV players, including Greaves Electric Mobility, River, and BGauss, contributed 58.4% of incremental sales, showing broader competitive depth. - Battery price swings, imported cell dependence, limited charging infrastructure, and safety and recycling compliance remain pressure points. - Shared mobility and battery-swapping ecosystems could gain importance in dense cities. - Connected platforms and telematics may create recurring revenue opportunities for manufacturers.

What’s next: - Market Research Future expects EV adoption, government policy, and charging and battery-swapping infrastructure to shape the next phase of growth. - Premium products with better range, digital connectivity, and lower running costs are likely to keep gaining share. - Electric two-wheelers used in delivery and logistics fleets could become a larger growth pool. - The sub-125cc segment is expected to keep losing share as consumers trade up. - Continued expansion of connected features and battery technology should help broaden the addressable market.

The bottom line: - India’s two-wheeler market is still growing, but the bigger story is structural change: the industry is shifting from mass-market combustion bikes toward a more premium, connected, and electric mobility market.