TVS Motor Two-Wheeler:

Just 6 Motorcycle, Scooter, and Scooty variants from TVS accounted for 71% of sales in CY 2025. Two variants of the TVS Three Wheeler accounted for the highest sales in the last calendar year. The popular price band is 85,000 to 150,000 INR because Indian customers are moving towards the value-plus and premium segments. The key to TVS Motor’s success is the premium segment.

TVS Scooty was among the Top 10 best-selling models in CY 2019. Now, one of the iQube variants comes under the Top 10 selling variants. Young Female buyers moved from the Scooty to the NTorq, and urban female buyers prefer the iQube electric scooter.

In CY 2025, TVS has a 20 EV variant. TVS has an EV product range spanning the entry-level to premium segments across scooters and three-wheelers.

In CY 2019, TVS Motor registered 2.7 million two-wheelers, including 1,778 Motorcycles, Scooters, mopeds, and Scooty variants. The number of variants has not only been reduced, but the company has also improved variant naming and optimized product portfolio through better CRM.

The company is the market leader in electric scooters due to its driving comfort and product market fit. iQube has 3 battery sizes (2.25-5.1 kWh), but one variant offers the best value to buyers.

4 New Three Wheeler King variants added after COVID-19.

TVS Three Wheeler:

22 Variants of Three-Wheelers registered in CY 2025, with the best-selling being the Electric Three-Wheeler due to its low operating cost. The number of variants increased from 4% to 17% with a wide range of applications and fuel types.

The post TVS Motor Variant wise Sales Forecast appeared first on Autobei Consulting Group.

ACG has created a Monthly real-time Pricing Analytics dashboard with more than 20 product attributes, Market dynamics, Willingness to pay, competitor landscape, segment migration, price elasticity, and other external and internal factors. This Analytics is created based on data at the Brands, Models, and Variants levels. We converted the high complexity into easy-to-navigate dashboards.

We built a simulation environment that turns this complexity into user-friendly Pricing Analytics. This dashboard helps to test, validate, and challenge before taking the final decision on pricing.

Indian Two-Wheeler Pricing Analytics Covered: 

• Variants: 300+
• Models: 140+
• Brands: 25+
• Electric and ICE

We’ve observed that pricing decisions are based on competitors’ prices, costs, or the Value provided by the respective OEMs. Now your pricing decision is showing the live impact. For example, what happens if the price of our Scooter or motorcycle increases by 2% in the next pricing review cycle? It takes months, a large team, but it ended on a gut feeling.

Some of the questions that give answers within a minute:

• If Hero cuts Splendor Plus by 5% to defend against the closest competitor’s model launch, what happens to Hero’s total OEM share versus Honda?
• Where is the most defensible price point for a new 125cc scooter from a Tier 2 OEM entering the market?
• At what price does the Ather Rizta Z achieve price parity with the Honda Activa on a 5-year TCO basis?
• Which Royal Enfield variant is most vulnerable to a KTM Duke 250 price cut of 12%?

The post Indian Two Wheeler Pricing Analytics appeared first on Autobei Consulting Group.

This data transforms decision-making from guesswork into highly precise, actionable insights. This data has the power to change Two Wheeler OEMs, insurance, financial institutions, and Components suppliers.

Indian Two Wheeler Brand-wise registration data 2010 to 2025:

Royal Enfield has more than 50 variants in CY 2025, including one variant that has discontinued. Of these 50 variants, only a few dominate sales and drive company revenue. The brand targets only the premium segment.

In 2010, numerous variants were available on the market. Royal Enfield focuses on a few variants to meet buyers’ requirements and preferences. In other words, product portfolio optimization is a key ingredient in achieving product-market fit.

Example: knowing Royal Enfield’s model sales numbers does not provide relevant market intelligence. But with our database, you will get the Royal Enfield Model, variant names, Engine, Price, Features, help map customer willingness to pay, competitor strategy, New product launches, marketing strategy, and Pricing. It save heavy cost of OEMs. Similarly, component suppliers develop effective production plans, R&D budget allocations, revenue growth targets, and market-share gains.

Splendor from Hero MotoCorp is the leading model, but knowing that only single-digit variants account for its sales shows the actual demand.

Electric Two-Wheeler Product Planning:

Having such data will help Electric Two-Wheeler OEMs map demand and determine which Electric Two-Wheeler models to launch in the market, as model mapping is enabled. This provides the performance, price, customer segment, demand profile, and replacement options.

Components suppliers include Tyre, Engine oil, Clutch plate, Battery, Spark plug, and other components required in the market.

Answer the key questions like:

• Segment-wise analysis of Scooter and Motorcycle
• Which are the top 10 or 20 variants from 2010 to 2025
• How trend change and forecast
• What price bracket has the largest share
• How willingness to pay has changed over the last 15 years
• What is the combination of Technical specs and features that dominate the market

We have covered the following OEMs in our database:

• Hero MotoCorp
• Honda Two Wheeler
• TVS Motors
• Suzuki
• Yamaha
• Bajaj Auto
• Royal Enfield

The post Two Wheeler Vehicles in Operation (VIO) & Registration Data appeared first on Autobei Consulting Group.

Excess scooter production occurred in Q1 FY 2026, assuming the demand or sales of Scooters will exceed 5% growth. However, sales declined by 0.2% in the same period. An almost similar situation was noted for Motorcycles because their production fell by 1.3%, but sales decreased by 9.3% in Q1 FY 2026. The export of the two-wheeler increased by a double-digit of 29%, but the scooter export decreased by 7.3% in Q1 FY 2026.

In Q2 FY 2026, the Scooter and Motorcycle segments recovered from negative to positive growth. Their production volume increased by 12% and 10.4%, respectively. Their sales grew by 12.4% and 5%. The exports of both segments registered double-digit growth.GST rate cut and the festive season were the key factors behind the growth.

In FY H1 2026, the Scooter segment registered 6.4%, and the Motorcycle segment declined by 2.1%. The Two-Wheeler export market is flourishing for Indian Two-Wheeler Brands.

Honda lost 7% of its market share in H1 FY 2026 in the Scooter segment because Indian buyers widely accept TVS Motors’ Scooters. Suzuki, Hero MotorCorp, and Ather are benefiting from favourable market dynamics. Bajaj Electric Scooter lost minor market share in H1 FY 2026.

In the Motorcycle segment, TVS and Royal Enfield are two brands that increased their market share in H1 FY 2026 compared to H1 FY 2025. TVS and Royal Enfield Motorcycle quality and performance are the main drivers behind their growth. Royal Enfield grew by 21%, and TVS grew by 8% in the first six months of the current financial year.

Subscribe to our Monthly Indian Two Wheeler Report and Data, contact us about the Monthly Subscription, Email: Info@autobei.com

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The Indian two-wheeler tyre market was 123.5 million units in FY 2025, and this segment has the largest share in the Indian tyre industry. The motorcycle segment is the largest in the Indian Two-Wheeler Tyre market, but the Scooter segment is also growing fast. The key reason behind this is the small replacement cycle of the motorcycle segment and the large number of motorcycle units parked in India.

The replacement tyre is smaller in rural India than in Urban areas because of rough terrain in rural areas and more use of motorcycles.

Types of Tyres:

Radial tyres are still not popular in the Indian Motorcycle and Scooter segment. However, motorcycles above 300cc prefer to have radial tyres. Radial tyres are a bit more expensive than bias tyres. The difference in price between Bias and Radial is around 500 to 900 INR.

Motorcycles have a significant share compared to Scooters and mopeds. Tyre Buyers have different purchase patterns. In the South, 53% of customers have a specific brand in mind before buying the tyre, which differs in other parts of India. North, East, and West India have different buying habits for tyres for their Two-Wheelers.

The Indian tyre market is significant in the 80/100-18 M, 90/90X17, 100/90-17, and 100/80-17 sizes. Electric Scooters have popular tyre sizes 100/80-12, 90/90-12, and 110/70-12. We provide the Tyre size-wise Market size, OE, and the replacement tyre market. We have included more than 30 types of tyre sizes.

Competitor Landscape:

MAXXIS, MRF, TVS, and CEAT are the major brands in the Indian two-wheeler OE and replacement market. MRF and CEAT are leading tyre brands because they provide better value for money. Independent or multi-brand Tyre dealers also promote these two brands. Michelin offers premium tyres at almost double the price of mass market tyres. The company must convince the buyers of the value of high-end premium tyres. During the ACG survey, we also observed that even after communicating the key features of the premium tyre, buyers could not connect with those points without experience.

TVS has benefits, such as a wide range of two-wheelers in India, especially for the OE tyre market.

• MRF Tyre
• Apollo Tyres
• CEAT Tyre
• JK Tyre
• TVS Srichakra Tyre
• Bridgestone Tyre
• Michelin Tyre

The Growth Drivers of the Tyre market:

In FY 2025, 23.9 million two-wheelers were produced in India. According to the ACG forecast, the Indian Two-Wheeler market is expected to register a 0.5% CAGR from FY 2025 to FY 2030.

The Key drivers behind the growth of the Indian two-wheeler market are:

• Quick commerce growth
• This effective mode of transport to avoid traffic congestion in cities like Mumbai, Delhi, Pune, Bangalore, Ahmedabad, and other Metro, Tier 1, and 2 cities
• Affordable price point of 60% motorcycles, Scooters, and mopeds
• Growth in Electric scooters included slow EV
• Better resale value, long life cycle of the Vehicle, and low maintenance cost
• A rich product portfolio means buyers have many choices that fulfill their needs.

State-level Two-Wheeler Tyre market:

North India is the largest market for replacement and OE tyres. Uttar Pradesh is the central state in the North region. In UP, two-wheelers are popular because buyers are looking for the most affordable mode of transportation in daily life. Industry collaboration and culture play a role in making it the largest Two-Wheeler market in India. The Rural areas in UP prefer to have a Motorcycle for day work.

In the western region of India, MP, Maharashtra, and Gujarat are the central states for motorcycles and scooters. Electric Scooters are also popular in these states and are expected to be one of the significant markets for 2W EVs.

In South India, Bengaluru and Chennai are the major cities. Q commerce is also one of the primary reasons behind the attractive tyre replacement market. However, the buyers’ behaviour differs in Bagaluru from that in other parts of India.

Delhi, Rajasthan, Bihar, and West Bengal are the other significant two-wheeler tire markets.

Challenges and Opportunities:

The large market size is attractive to tyre manufacturers. ACG has conducted extensive research to identify buyers in the secondary tyre market. As per our study, it is a challenge that buyers do not process all the technical and complex information related to a tyre before making a decision. However, this is also considered an opportunity to gain a significant share of this segment.

Make the tyre brand Strong and Appealing:

Need to design an effective Brand Strategy to engage the potential and existing buyers. The brand needs to be energized, which impacts the buyer’s decision. This can be done in the following ways:

• Innovative product communication
• Engage your buyers in pre-sales and post-sales

The Tyre brand can be interesting to buyers in the above two ways.

ACG has created the Brand matrix with the customer (Tyre buyers) on the following parameters:

• Tyre Brand equity,
• Tyre Brand relevance,
• Tyre Brand image,
• Tyre Brand loyalty, and
• Tyre Brand portfolio

In today’s world, the above five parameters are changing rapidly, and Tyre’s brand needs to keep up with how customers perceive it and process information.

Key Highlights of the Report:

• Indian Two-Wheeler Market Assessment
• Indian Two-Wheeler Tyre Domestic Market Size, Import Tyre, and Export Tyre Market
• Motorcycle, Scooter, Moped split between ICE and EV drivetrain
• Tyre size-wise Market share, Sales by units, and Sales by Value
• Indian Two-Wheeler Tyre Market trend and forecast – FY 2020 to FY 2030
• Customer Buying behaviour Analysis and survey
• Replacement interval of the Motorcycle and Scooter
• Brand and Sales Strategy Analysis of Tyre Manufacturers
• Price point of the various tyre size

The post Indian Two Wheeler Tyre Market appeared first on Autobei Consulting Group.

The product is the core of the Indian Two-Wheeler Industry. For buyers, a Motorcycle or Scooter is not just a physical product but a combination of Service, Aesthetic look, Parts, Durability, Reliability, Brand image, Experience, Technology, organization, and others. The successful product strategy has all the essential components and ingredients.

This report analysed how customers buy the motorcycle or scooter they want. Two-wheeler buyers estimate which Motorcycle or Scooter will deliver the most perceived value and act on it. Whether the Product offer lives up to expectations affects customer satisfaction and the probability that the customer either repurchases or recommends it, such as Splendor and Activa.

What benefits are buyers getting, and what is the cost? Here, the price refers to the bundle cost, such as buyers’ time, energy, psychological cost, etc.

Buyers want a certain level of reliability, durability, performance, and resale value. A certain level is a relative term directly associated with product cost or customer segmentation.

Buying Pattern Analysis:

Like school-going students (16- 18 years), the parents of young riders focus more on Safety, so they prefer a low-speed Electric Scooter.

Budget-conscious, college-going, or early job seekers prefer mileage-focused scooters and motorcycles. Young Professionals value Style and ValuePlus Motorcycles and Scooters. The 30 to 40-year-old age group looks for a multipurpose, stylish, or luxury Motorcycle.

Motorcycle Segment:

The segment’s market share up to 125cc declined to 75% in FY 2025 from 81% in FY 2012. 28% of model variants are available in this segment. The market share of the 125cc to 200cc segment was 15% in FY 2025 compared to 17% in FY 2012. 35% of model variants are available in this segment because they are growing. The segment above 2cc increased its market share from 2% in FY 2012 to 10% in FY 2025. 38% of motorcycle models and variants are available in this segment because buyers prefer a wide range of products.

Scooter Segment:

110cc and 125cc and above are two key segments. Most 125 and above scooters are owned by young people who like to have power. The 125cc segment is popular among Women, Middle-Aged people, and retirees.

Growing Preference for High-CC Bikes by FY 2025

125cc is the largest and dominant segment but market share is declining because buyers are looking for bit higher cc engine.

200 to 500cc is profitable segment. 500c and above is the growing Two Wheeler segment from FY 2021 to FY 2025.

Why is 125cc the popular segment?

Mileage and Power are two key components of a Two-Wheeler. Buyers looking for mileage go below 125cc, and buyers looking for power go above 125cc engines. The 125cc engine segment offers a balance of power and mileage. This is one of the key drivers behind the largest segment in Indian Two-Wheelers.

Honda Product Strategy:

Consumers widely prefer Activa due to its Good Initial Acceleration, Smooth riding, Excellent suspension, Excellent riding Comfort, Moderate mileage, and Low maintenance cost.

DIO was introduced in the Indian market to attract the younger generations, which added to its sales volume.

First, introduce the “COMBI BRAKING SYSTEM” before it became Mandatory for all 2-wheelers. We were the first 2-wheeler company to introduce OBD Versions in India.

Honda has started frequently offering modified versions, such as 3G, 4G, 6G, Activa 125, OBD1, OBD2, and X Smart ( where no key is required to lock and unlock the vehicle, like in Cars).

Separate showroom and service set for high-end models to attract premium customers.

First to start “Smart Workshops” across India. It is the next level of  “Customer care” offered by Honda.

4 Models of Honda contribute 84% sales within Honda group including Activa 125 and Activa 6G in FY 2025. The product portfolio covers both Motorcycle and Scooter segment. Such market share have a more stable and reached to diversified customer segments. Honda has a significant presence in all two major segment ValuePlus and Economy.

Hero MotoCorp Product Strategy:

Though the HONDA Active and HERO Pleasure share the same Engine design and components, Pleasure cannot compete with ACTIVA due to some Quality issues and Riding comfort.

Though the Engine Design is the same, they lag in other Parameters.
Other scooter models introduced by HERO did not live up to the expectations of the Consumers.

In Motorcycles, Splendor is still the Single Largest selling Brand in India due to its incomparable Engine design ( Horizontal Engine: has its advantage) and vehicle Body geometry.

Also, the Introduction of “HF Deluxe” models (Which Share the same engine as Splendor) adds to their volumes.

The Splendor and HF Deluxe contributed 75% sales of Hero MotoCorp in FY 2025. This is highly risk business scenario. There should be diversification of product portfolio to cover wide range of the customer group. Both Models are in position in Economy Motorcycle segment.

Other Motorcycle Models Introduced by HERO initially received a good market response but could not sustain it in the long run.

Yamaha Product Strategy:

A late entrant to the Low CC Vehicles market, Honda, Hero, and TVS could not sustain in Volume games, though they provide good-quality products like RAY Z, ALPHA, and Fascino.

Now, they are moving away from low-CC vehicles and will focus on higher-end Bikes and Scooters in the future.

OEMs with Higher Sales Offer Slightly More Variants:

The relationship between the number of variants and sales is weak. Sales have a minor impact if the number of variants increases for every model. However, the results differed after developing a product strategy for individual brands.

Increasing the number of variants alone does not help OEMs increase sales; proper planning and a strategic target customer group are also crucial. Product features, Pricing, Brand Strategy, Customer segment, etc., also play a significant role.

Sales Sensitivity to Performance Matrix Varies by Price Segment:

ACG performance helps to create Product Strategy and Product planning with Specs.

Higher-end or luxury segment customer buyers seek engine power relative to price. The economy segment harms increasing performance. Other important factors for the Economy segment are Price, Mileage, Brand Reliability, and others key specs.

In the ValuePlus segment, the performance matrix influences buyers’ decisions, but aesthetic look, features, and brand image also play essential roles.

Strong Linear Relationship Between Price and Kerb Weight

The Entry level Two Wheeler have a low kerb weight. This also help to get desired mileage. The higher priced Two Wheeler have a strong chassis, Heavy Engines, mostly with premium quality material.

Table of Content of the report: Data in Excel is also available

• Indian Two Wheeler Market Trend and Forecast in Units and Value (USD)
• Vehicle Type: Motorcycle and Scooter
• Model and Variants level Sales, Price, Kerb Weight (Kg), Engine Type, Number of Valves, Power (hp), Torque (Nm),  Transmission, Front  and Rear Break,  Front Tyre, Features, and other key detail.
• Competitor Landscape: APRILLA, ATHER, Bajaj Auto, Harley Davidson, Hero, Honda, Husqvarma, Kawasaki, KTM, Okinawa, OLA, Royal Enfield, Suzuki, Triumph, TVS Motors, Vespa, and Yamaha
• Segment: Economy, ValuePlus, Stylish, and Luxury
• Engine Based Segment: Entry level, Executive, High performance, LifeStyle, and Power Bike
• Customer Buying Analysis: Based on Gender, and Age
• Sales and Market Share: North, East, West, and South Zone
• Top 50 cities for 2 Wheeler Market
• Motorcycle and Scooter Product Management: Product position, Value delivery by Top Models, Product Strategy, and Product Market fit
• After Sales service cost analysis , Resale value
• Electric Two Wheeler and ICE Engine Market Analytics
• Brand Image and Position and how it impacts on Sales
• Customer buying journey and different touch points experience
• Customer segmentation based on income

The post Indian Two Wheeler Product Strategy appeared first on Autobei Consulting Group.

In FY 20205, 50% of motorcycles and scooters will be priced between INR 90K and INR 189K. This segment accounts for 31% of total two-wheeler sales.

Bajaj Auto and TVS Motor control 50% of sales in this price band because their most popular Models, like TVS Motor’s Pulsar and Raider 125, fall within this price band. Sales prices above INR 189K and below INR 90K are controlled by Hero and Honda, which account for 70% of sales.

Low prices mainly drive Indian Two-Wheeler sales because most buyers are first-time buyers, and most first-time buyers consider whether a scooter or motorcycle is affordable.

As per the Indian Two-Wheeler Pricing Strategy report, Half of the Two-Wheeler Models are priced below INR 130K, and the rest are priced 50% above INR 130 K.

Indian Two-Wheeler Pricing Strategy

TVS Motors, Hero MotoCorp, and Bajaj Auto focus on the low-price segment to gain significant market share. Yamaha is also following the same line to compete in this segment.

Honda has a mixed product portfolio with an extensive price range to cater to multiple customer segments.

Willingness to Pay:

After interacting with various buyer profiles, we have concluded that buyers are willing to pay higher prices for specific Models and variants because they are getting value for their money.

Honda’s Shine, Stylish Model is the Royal Enfield New Himalayan 450, Ola, TVS Apache,  Jupiter, and Yamaha Ray. The buyers are ready to pay more because they have experienced getting more against what they are paying.

Buyers are willing to pay more because it demonstrates appropriate product-market fit.

Value Segment is an attractive segment, based on Value (INR, Billions):

The scooter segment is moving towards ValuePlus because buyers are looking for value, not just low prices.

Indian Two-Wheeler Segment and Brand Market Share Assessment

The economy or the Affordable segment is shrinking, but ValuePlus and Stylish are growing. By 2030, the ValuePlus segment is expected to be the largest in value.

Royal Enfield is a highly profitable OEM because of its Product market fit in the Stylish, Value-plus, and Luxury segments.

Honda can penetrate the ValuePlus segment and increase its market share by 2030.

EV scooters like Ola and Ather are present in the ValuePlus and Stylish segments.

To buy the Full report, contact us at Info@autobei.com

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The Indian Scooter and motorcycle market is growing because scooters and motorcycles are affordable, have low running costs, require little upfront investment, have low EMIs, are in Demand in quick commerce, are easy to drive in heavy traffic, especially during peak hours, and are easy to park.

Entry-Level Bikes Remain Dominant in Indian Two-Wheeler Market:

The entry-level segment will still be the largest in the Indian two-wheeler market in FY 2025 because first-time buyers are price-sensitive. Other reasons are that entry-level two-wheelers have attractive mileage, are preferred in the rural market, and have low maintenance costs.

Due to increased disposable income and the primary commute vehicle, second-time buyers prefer executive and Lifestyle Motorcycles.

Royal Enfield is the market leader in the LifeStyle segment because its brand is strong in buyers’ minds.

Indian Two-Wheeler Trends FY 2025: Honda Leads, Hero Slips:

Honda’s vehicle sales revenue overtook Hero MotorCorp’s Sales revenue in FY 2025. This is one of the milestones that Honda Two Wheeler India achieved. Honda achieved this because it has a mixed product portfolio. Honda has a significant presence in the Value Plus segment, and Hero has a stronghold in the Economy segment.

Market Share Trend FY 2021 to FY 20205:

Hero has continuously lost market share since FY 2009, when its share was 60%. In the last 16 years, it has lost around 50%, down to 29% in FY 2024. Honda, which had a market share of 6% in FY 2009, has reached a 28% market share.

TVS Motors, Yamaha, and Royal Enfield increased market share because they adopted different strategies to win buyers’ confidence.

Competitor Landscape: Motorcycle and Scooter

Honda is gaining market share and growth in the Motorcycle and Scooter segments because the company does not compromise on component or part quality, Production process, or Equipment quality.

Honda also sets a benchmark in the Industry in after-sales support by providing proper training to technicians, supply chain management, quality checks, and customer satisfaction.

The other reasons are that Honda has high product reliability, performance, and resale value.

The post Indian Two Wheeler Market FY 2025 appeared first on Autobei Consulting Group.

OEMs included:

• Bajaj Auto
• Hero
• Honda
• TVS
• Suzuki
• Vespa
• Royal Enfield
• Aprilia
• Husqvarna
• Yamaha
• KTM , and
• Harley Davison

The Data contain also key specification and features of the Two Wheeler.

Some of the cities are:

• Mumbai
• Bangalore
• Delhi
• Chennai
• Kolkata
• Bhopal
• Indore
• Ahmedabad
• Jaipur
• Lucknow
• Kanpur
• Chandigarh
• Amritsar
• Pune
• Kota
• Mysore
• Trivandrum, and
• Others

Indian Two Wheeler is the backbone of India for city level mobility. The scooter segment is also having attractive segment share.

India Produced 18.6 million Scooter, Motorcycle, and Moped in FY 2024. Indian Two Wheeler Industry market size is around 1.48million in FY 24.  The scooter sold 466K and Motorcycle sold ~980K in FY 24. Two leading players Hero and Honda control more than 50% market share from last couple of years.

The Data is available in Excel sheet.

The post Model and City wise Indian two Wheeler PARC Data appeared first on Autobei Consulting Group.

In this fast-changing environment, newer entrants in the industry, such as Ola, Okinawa, and Ather, are rapidly gaining ground, while traditional giants like Honda, Bajaj, Yamaha, and TVS are moving at a more measured pace, often operating in lower gears. Significantly, a steady stream of new brands consistently introduces an average of two to three new products in this segment, further contributing to the industry’s dynamic evolution.

The electric two-wheeler market in India has become a familiar point of interest for both established automotive players and newcomers. This rapidly evolving segment is currently in the midst of a significant transformation.

It’s anticipated that the electric two-wheeler market will reach a substantial value of approximately 2,410 million USD by the year 2030. Remarkably, the scooter segment is experiencing a notable shift, with expectations of capturing a market share ranging from 30% to 36%.

The government has implemented a series of substantial measures to encourage the adoption of electric vehicles. These include the FAME subsidy, with FAME III currently under evaluation. The Ministry of Heavy Industries has launched Phase II of the FAME India Scheme, earmarking INR 1000 Crores to develop charging infrastructure for electric vehicles. Additionally, the government has enhanced subsidies for electric two-wheelers, increasing the subsidy from ₹10,000 per kWh to ₹15,000 per kWh, with the maximum subsidy now set at 40% of the ex-showroom price, up from the previous 20%.

Price Point of Electric Scooter and Motorcycle:

Ampere, Hero, and Okinawa offer products across a wide price range. Ola offers models within a narrow price range, targeting closely segmented markets. Okinawa and Hero are targeting more than two segments at a time. Currently, Chetak and Tork have only single products that are closely segmented.

Another notable development is the approval of the Production-linked Incentive (PLI) Scheme in May 2021. This scheme is aimed at strategically incentivizing potential investors, both domestic and international, to establish large-scale ACC manufacturing facilities. The emphasis here is maximizing value addition, ensuring high-quality output, and achieving pre-committed capacity levels within specified timeframes. It’s worth mentioning that companies like Ola are actively engaged in constructing substantial 20 GWh giga battery factories for their two-wheeler portfolios.

To fuel the growth, the government has initiated significant actions to decrease the Goods and Services Tax (GST) on electric vehicles, reducing it from 12% to 5%. A similar reduction has been applied to chargers and charging stations for electric vehicles, reducing the GST rate from 18% to 5%.

In a nutshell, these all-encompassing actions have driven the uptake of electric vehicles and significantly shrunk the cost disparity between conventional internal combustion engine (ICE) two-wheelers and electric scooters, marking a pivotal moment in the transition to electric mobility.

Turning our attention to a different aspect, India’s electric vehicle (EV) industry grapples with its distinct set of challenges. Most prominently, there is a notable deficiency in charging infrastructure, particularly in rural and smaller towns, despite the presence of over 600 charging stations along highways and expressways. Yet, this issue continues to persist and requires attention. Delving further, we gain a deeper understanding that access to electricity, especially in rural areas, is a significant obstacle that requires substantial investment to meet the growing demand for electricity by 2030. Responding to this need, the government has given the green light to establish 1,576 EV charging stations spanning 16 highways and 9 expressways.

Furthermore, the concept of “range anxiety” contributes to the gradual adoption of electric two-wheelers. In specific regions, the absence of state subsidies for electric two-wheeler purchases amplifies the price difference between internal combustion engine (ICE) two-wheelers and their electric counterparts.

The Indian electric two-wheeler industry relies heavily on imported components, including lithium-ion or LPP batteries.

Moreover, many potential consumers still harbor reservations about embracing electric vehicles. This is partly due to a lack of awareness concerning EV technology, further compounded by sporadic incidents of electric vehicles catching fire. To foster greater EV adoption, India must craft a manufacturing-friendly policy framework. This strategic endeavor holds the promise of mutual benefit, benefiting the domestic market and positioning India as a potential exporter of electric two-wheelers to countries like Vietnam, Africa, Sri Lanka, several European nations, and beyond.

Analysing Product Portfolio, Product USP, and Competitive Landscape:

We identify three distinct categories in the Electric Two-Wheeler Industry: High-Speed Electric Scooters, Low-Speed Electric Scooters, and Motorcycles.

While the Scooter segment garners high market appeal, the presence of Motorcycles in the Electric Segment is notably limited. Several primary constraints hinder the adoption of Motorcycles in this segment. Firstly, the speed does not align with the expectations of traditional Motorcycle users. Secondly, the range offered falls short of the necessary requirements. Lastly, even after accounting for subsidies, a substantial price gap persists between ICE 2-wheeler Motorcycles and their Electric counterparts.

Unpacking the Influence of Brand Recognition on Consumer Behaviour:

Brand recognition shapes customer perceptions, preferences, and interactions with products and services. However, understanding the intricate dynamics of how brand recognition precisely influences consumer behavior merits closer scrutiny.

Value-driven Electric Two Wheeler results in higher sales:

In the EV Segment, prominent contenders include Ather, Bajaj, Ola, and TVS. Notably, Chetak has witnessed a remarkable doubling of its market share within just one year, reflecting significant growth.

Particularly, Ola stands out as the fastest-growing OEM in the EV segment, commanding an impressive 30% market share during the initial half of FY 2023.

Traditional Automakers Paving the Way:
TVS has displayed commendable growth on the traditional automaker front, securing a 19% market share in H1 FY 2024, a substantial increase from 11% in FY 2023.

Challenges and Downturns:
Conversely, Hero Electric is gradually ceding its market leadership position, experiencing a significant 27% decline in market share from FY 2020 to H1 FY 2024, marking a substantial setback for the company. Additionally, Okinawa is another OEM witnessing a decline in market share, plummeting from 38% in FY 2020 to 3.6% in H1 FY 2024. Notably, two company dealerships in Ahmedabad have ceased operations.

New Entrants Shaping the Market:
When juxtaposed with traditional automakers, new entrants in the EV sector exhibit a stronger foothold in the Electric Two-Wheeler market, drawing parallels with the narrative of Tesla.

Exploring Sales Trends:
Now, let’s delve into the factors that underlie these sales trends. We have meticulously studied and correlated consumer behavior within this purchasing pattern with market dynamics. By delving into the minds of existing and potential consumers, we unveil the driving forces behind these trends.

Cracking the Code of Consumer Decision-Making:
In the world of Electric Two-Wheelers, understanding how consumers make choices is crucial, when people are asked about the first brand that pops into their minds in the Electric Two-Wheeler category, a whopping 75% swiftly named Ola.

Among these, 75% and 30% attribute their choice to an emotional connection with the brand. This emotional bond is forged through Ola’s consistent storytelling, especially its impressive tale of having the largest manufacturing facility in India and the grand launch of the Ola S1 Electric Scooter. Ola also effectively leverages social media and extensive media coverage to cement itself as the go-to brand for tech-savvy, youthful, and creative individuals. Ola’s ability to influence consumer behavior is a testament to its brand strength, highlighting the idea that buying an Ola Electric Scooter transforms you into a hero, not just a purchaser.

When consumers have to choose between brands like Ola, TVS, Chetak, Okinawa, Ather, and others, their choice often reflects their personal identity and the image associated with the Electric Scooter they want to own.

Interestingly, Ather users respond very positively, while users of some other brands express a more neutral sentiment. If this pattern continues, consumers might unconsciously lean toward specific brands drawn by the self-expression they find within them. This poses a significant challenge to traditional two-wheeler manufacturers.

The challenge for traditional Scooter Original Equipment Manufacturers (OEMs) is to shift from being seen solely as providers of Internal Combustion Engine (ICE) and Electric Two-Wheelers. This shift might involve introducing new brands that strongly emphasize Electric Technology, a move that significantly shapes consumer perceptions.

Product Transformation: ICE vs. EV:
Traditionally, Two-Wheeler buyers sought high performance, safety, and mechanical reliability. But in the digital age, riders demand a more comprehensive experience – a brilliant, connected ride that enhances safety, provides information, and entertains.

In the coming years, there is expected to be a significant rise in electric two-wheelers equipped with extensive LCD dashboards and augmented reality head-up displays.

Sales and Marketing: Dealership vs. Online:
Customers usually start their journey online to gather information about Electric Two-Wheelers, but the final decision often hinges on a test drive. Research reveals that Electric Two-Wheeler buyers interact with an average of 5 touchpoints during the purchase process, with 3 of them happening online. These touchpoints significantly influence the buying decision, even though the purchase usually takes offline.

Enhancing the Showroom Experience for Customers:
The quality of a customer’s experience in an Electric Two-Wheeler dealership is crucial. Unfortunately, the current scenario leaves much to be desired, with 95% of customers reporting subpar experiences upon entering such showrooms. Prospective Electric Vehicle buyers deserve a showroom visit that exceeds traditional standards. It’s not just about the dealership’s size; it’s about creating a welcoming atmosphere, providing in-depth product knowledge, offering informative test drives, sharing technological insights, and showing an unwavering commitment to understanding each customer’s unique needs. Currently, Electric Two-Wheeler showrooms often fail to deliver an experience that matches the importance of the purchase, making it feel more like buying everyday products like soap or vegetables.

Dealerships must aim to exceed customer expectations aiming to boost customer satisfaction. This ultimately leads to more sales and helps build strong, lasting customer loyalty. Achieving this requires punctuality, personalized attention, and making every customer feel like they are the dealership’s top priority.

Oreva sets an example of understanding customer needs through a unique business model. Oreva manufactures Electric Scooters without batteries and actively involves dealers in the process.

Key Highlights of the Indian Electric Two-Wheeler Product and Customer Analytics Report:

• Indian Two Wheeler Market Size, Challenges, and Opportunities
• Indian Electric Two-Wheeler Market size in terms of Volume (units) and Value (USD)
• OEMs Market Share Trend and Forecast
• Market size and trend of South, North, West and East India
• Indian Electric Two Wheeler competitor landscape
• Penetration of Electric Scooter and Electric Motorcycle till 2030
• Electric Two-Wheeler Price Trend Forecast Analysis
• Electric Scooter and Electric Motorcycle Market Assessment
• Low-Speed and High-Speed Segment Analysis
• Market category based on battery type: Lithium & Acid lead
• Electric Two-Wheeler Model-wise Technology Analysis
• Market Drivers and Restraints for Electric Two-Wheeler
• Market dynamics in Rural and Urban areas
• Expected Market Development for the next 10 years
• Central & State Government Policy and Subsidy support Analysis and its impact on the Electric Two Wheeler market
• Electric Two-Wheeler Product Roadmap
• Market Segmentation based on Volt 48-59V, 60V-72V and above 72V
• Market Segmentation based on Battery size, Actual Range, and Charging time
• How OEMs target customer segments and map with their product portfolio
• What is the brand image and brand position in the eyes of the customers?
• How to improve the brand position of Traditional and Non Traditional OEMs
• Customer decision process – Electric Vs ICE Two-wheeler
• Customer Groups for Electric Two-Wheeler
• Customer journey touchpoints
• What are the key points customers consider when buying an Electric two-wheeler?
• Why Motorcycle customer is not taking an interest in replacing their ICE Motorcycle
• Customer profile of existing and potential users of e2W
• Customer groups based on their income
• Customer willingness to pay for different Brands and Models
• Company Strategy Analysis, Investment, and company profile: Hero Electric, Ather, Ola, Crompton Greeves, Bajaj, TVS, Battre, Okinawa, Pure EV, Tork, Revolt, Oreva, White Carbon, BGAUSS, Kinetic, and others
• OEMs Pricing Strategy
• Price position or price difference of all Electric two Wheeler models
• Segmentation based on the Price group of the Electric two-wheeler
• Market and Product Gap Analysis
• New coming-up launches
• How Models deliver value to its customers
• Product Life Cycle Analysis of Electric Two-Wheeler
• Financial challenges during each phase of the Product life cycle
• How to Develop the Electric Vehicle (2W) – balance between market attractiveness, Product attributes (MVP), and customer expectation
• Design an effective Marketing Strategy
• Sales Strategy Analysis
• Digital Marketing Strategy Analysis
• Customer experience analysis during Dealer visits and After-sales
• How to Go-To-Market
• Effective communication strategy since Electric Two Wheeler is the new technology
• Dealer Staff training requirement
• Refurbished market size and opportunity for all stakeholders
• Refurbished feasibility study

The post The Future of the Indian Electric Two Wheeler Industry appeared first on Autobei Consulting Group.

The Indian Two Wheeler unit in 2021 stands at about 13.7 million units which is equivalent to the sales volume of 2013 and is expected to register a 5 per cent CAGR over the next 5 years.

The year 2021 wasn’t a cakewalk for the Indian two-wheeler industry as it had to navigate across various hurdles to keep up the pace with its sales volume. However, the growth was a meager 3.5% up from the year CY 2020 which proved to be fatal for the two-wheeler industry. The two-wheeler industry has always had a significant foothold across the nation and the cumulative market value stood at 1321.8 billion INR during this year.

ACG has put forth various reasons that led to the disastrous outing for the two-wheeler industry, and the most prominent of them is the rapid and incessant shot up in customer preference to buy Electric Two Wheeler, fuel prices, massive inflation, and also the exorbitant interest rates. All these factors continued to trouble the already plagued two-wheeler industry and led to its downfall.

When we take a look at the market dynamics post-2018, we notice an astonishing fact that the scooter and motorcycle segment are mostly in tandem with the growth curve and the overall performance in the market.

The two-wheeler segment in India has enjoyed a flawless run in the market, thanks to the wide variety of product choices it offers to its customer base.

The two-wheeler segment can be broadly classified under 5 categories i.e Economy, Executive, High performance, Lifestyle, and Power Bike. Out of all the categories listed above, the economy and the executive category have established a firm hold in the market by amassing a record number of sales in the past. Their market presence stands at a whopping 93% as far as the year 2021 is considered. While the other categories have not been able to get big in the market but have decently performed as they all witnessed good growth in the yesteryear.

Taking a look at the growth curve of the various bike categories reveals an interesting insight that the overall growth rate has been encouraging. The entry-level segment has been able to record a CAGR of 4%, while its close competitor Executive faced a slash in its sales volume, which brought its growth to -1%. However, the lifestyle, high performance, and the power bike have made the most of the market opportunity and have amassed a growth of 24%, 160%, and -1% respectively during the last decade starting from the year 2011.

Road to owning a two-wheeler:

Procuring a two-wheeler to facilitating commuting needs has been the top priority for the Indian community at the moment. The buyers take into consideration various factors before zeroing in on their purchase call.

The key areas of consideration are price range, ergonomics and style, economy, status and prestige symbol, emotions, ease of comfort and convenience, and most importantly maintenance cost and safety. The weightage of these factors depends on the type of segment. Ultimately, the customer makes the final call in regards to procuring a two-wheeler.

The hierarchy of the factors that influence the purchase decision will vary from person to person, and the key areas like age and income of the buyer, gender, and most critically the geographical base play a critical role in influencing the buyer.

The report formulated from our end depicts the fine relation between the purchase decision of the buyer and the influence it has on the OEM’s market dynamics. The report also highlights the corrective action that needs to be inculcated for being able to build on the trust of the potential buyers.

Key factors contributing to the Purchase decision:

The marketing and the advertisement channels do constitute a major part in getting the traction from the customer base and thereby enhance the sales volume. The brands have started focusing on unravelling the various standout features of their product in a visual mode and this in turn has enabled them to reach a wide range of audiences. For instance, two-wheeler products like Pulsar and Apache have been periodically making the headlines by coming up with advertisements to showcase the product’s best-in-class power ability, seamless ride experience, and the confidence it instils in the rider.

Altogether, these advertisements have emerged as a strong medium to directly engage with the potential customer base. Taking a look at the ad conceptualized by Pulsar and Apache reveals that the brands are trying their best to attract customers to get their hands on the product and we will soon get to know whether the brands would be able to reap the best with this tactical Move.

The recently concluded study has revealed a scintillating insight that the Word of Mouth(WOM) stands tall in influencing the mindset of the buyers to make purchase-related decisions, it is then closely followed by the product visibility attributes which also attract the customers to own a brand. Both these factors cumulatively sum up to almost 75% of the influencing medium, out of which 40% is by the WOM and the rest is from the product attributes.

The key insights of this analysis are briefly listed below:

Sentiment Analysis:

It is one of the prime factors that have a good impact on the buyer, this analysis helps the brand to formulate a product strategy and a sales plan. Over the last half a decade the TVS brand has done commendably well in hitting the positive sentiment well.

Impact induced by the culture:

The profile of the person making the purchase decision: the two-wheeler industry has always been customer-driven. The industry has been able to quickly adapt itself to deliver to the needs of the customers, which has been a prominent reason for its flawless run in the market. Getting to understand the customer’s mindset is one of the keys to success.

The different ways in which the communication is sent across:

Communication amounts to the overall rise in the sales volume, as it strikes the right chord of the customer and influences them to buy a product. Communication across the two-wheeler industry is divided into 3 types i.e Points of Parity (POPs), Points of Difference (PODs), and Points of irrelevance ( POIs). All these 3 types of communication come together and render a good experience to the customer thereby contributing to the success of this two-wheeler segment. However, the influence of this communication factor is purely dependent on the customer’s mindset.

Impact by the surrounding culture:

Let’s take a look at the most luxurious two-wheeler brand i.e the Harley Davidson in the Indian context. We get to know that Harley Davidson has evolved to be one of the key prestige and status indications in the Indian scenario. The buyers usually get their hands on this product to enhance its popularity and traction in society rather than using it as a mainstream commuting option.

Taking a further keen look in regards to how the competition has turned out be in the two-wheeler industry for the last few years reveals an astounding point that the dominance of the two-wheeler segment is segment-specific, and even the segment leaders have been able to make the most of the market by maintaining a popular product chunk of not more than 2 to 3 two-wheeler models.

Case study analysis:

1. Ola Impact, Market share, Customer experience, and its impact on the Electric Two Wheeler Industry and Overall Indian Two Wheeler segment
2. The study conducted on a customer who previously owned a Bajaj Pulsar and went on to purchase a TVS Apache has revealed the various factors that influenced the owner to make his buying preference.

Key Highlights of the report: Electric Two Wheeler and IC Segment

• Indian Two-Wheeler Market Trend and Forecast 2030 – Electric Two-Wheeler and IC Two-Wheeler
• Used Two Wheeler Market Analysis
• Comparison of Electric Two Wheeler Products, Markets, Price, Product life cycle, Maintenance cost, Resale value, Getting a loan from Banks to buy a vehicle, Challenges, Opportunities, Forecast, OEM profile, Customer Acceptance, Customer expectations, Customer experience, Dealership difference, Selling Strategy, Technology, Key Features, and Design
• How buying and selling process is different for EV and IC Two-wheeler
• Customer willingness to pay for each brand and Model
• The average life of a Motorcycle, Scooter, and Electric Two Wheeler
• Demand Analysis – Long, Medium, and Short term
• Scenario Analysis of Changing Price, Specs, and Key Features
• Establish OEMs strategy to invest in Electric Two Wheeler Start-ups
• Product improvement Analysis – Engineering, Design, Quality, Reliability, Features
• How Honda and Yamaha are leading the innovation to win the trust of the buyers
• Market Fit and Go-To-Market Strategy Analysis
• How to develop a Product roadmap for an Electric Two Wheeler
• Indian Two Wheeler Segment Analysis – Market Share, Volume, Growth, Price bracket, Number of Models, Model Distribution Analysis
• Motorcycle and Scooter Customer profile and map with purchase criteria
• Income and Age group and their buying pattern
• Uses of Motorcycle and Scooter
• Maintenance Cost Analysis of Major Models
• Brand Perception of Bajaj Auto, Hero, Honda, TVS, Harley Davidson, Royal Enfield, Yamaha, Piaggio, Ola, and others
• Two Wheeler Market Dynamics of Rural and Urban India
• State wise EV Policy and Penetration Forecast
• Key growth drivers of Electric Two Wheeler and IC two-wheeler
• Customer preference to select the specific Models
• Market Attractiveness for each Two Wheeler Segment
• Top Selling Models and Why Customers Prefer Those Top Models
• Indian Two Wheeler Competitive Assessment tool
• Communication Style of Major OEMs and Marketing Strategy
• Opportunity Analysis based on Low growth, Low Market Share, and Product life cycle
• How some models are replacing segment leader Models

The post Indian Two Wheeler Industry Analysis 2022 appeared first on Autobei Consulting Group.

Pandemic played a spoil part in numerous industries across the nation and globe. Although predictions made it clear that Post pandemic period will bring about a booster for the industry, the same was not evident in the statistical figure as it suggests the 2 wheeler Market of India saw its all-time low of -18% in the year 2020 despite a sharp diminish in the COVID effect, and the number currently stands at -13% and is anticipated to worsen as the year proceeds further owing to the rise of cases because of the advent of the mutant variant of virus in the Indian population.

However, the Two-wheeler industry was able to garner some sort of relief for itself as the Royal Enfield rose to the epitome of performance by amassing the growth rate of 24.7% when all its competitors were struggling to even get a marginal growth for themselves. The path taken by Bullet bikes was then followed by the Honda brand as it witnessed an upliftment at a rate of 7.6%. But the progress of other brands in the two-wheeler segment wasn’t that encouraging.

The Hero Motocorp which flaunts the name of having the highest shares of the vehicle in the Indian market lost its stronghold on the Market and even its growth factor dipped to -0.8% in the last decade.

This precedent of losing the market hold resulted in an overall decrease in the Growth rate of contemporary giants like Bajaj Auto and Hero Motocorp as they went onto be poorer by 7% and 8% for the decade. Whereas the growth curve is seen by Royal Enfield at 3%, and Honda at 11% was a sigh of relief for the market when everything else failed to capitalize for them.

The Motorcycle sector’s leaderboard has immense competition, and it’s bound to change for every quarter as it’s been evident considering the last few cycles. During these tough times, Hero continued its flawless run in the segment by collecting an overall hold by banking a percentage slightly above 50% in terms of its brand presence and striked an annual growth rate of -5.3%.

There are vital factors that collectively contribute to deciding the top performer position like budget vehicles, a trust created by the brand and its customer retention policy, and the specifications the brand offers. As Hero ticked all of these boxes and established itself as the brand that would cater to all the customer’s requirements, and this factor has completely reduced their degrowth rate which used to be at 2 digits to just at 5% and this Trend was only witnessed that too at the starting of the decade i.e in the initial year of 2012.

From then on till now, there has been absolutely no turning back for Hero. Post pandemic period posed a challenging phase to them as they lost the market hold by a marginal value of 15 and 12% in FY 2020 and 21, this further affected their Growth rate and scaled-down it to as low as -1%. In terms of growth progress, Bajaj has followed the footprints of Hero and has evolved incessantly to become the highest market share Holder only after Hero by amassing a Market hold of 18%. However, their performance over the last decade wasn’t that consistent as they let off go of the market share by 7%. The other competitors in the segment weren’t that far behind as Honda showed a market potential of 8%, and followed by Royal Enfield with a grip of 5% in the pandemic hit phase.

When we take a complete overview of the Scooter sector, it can be observed that its growth had a phenomenal rise to 6% in the decade. Despite a hardcore competency by the rivals in the segment, Honda was successful and emerged to be crowned as the Top brand in the category for the decade, even they were able to enhance their hold on the contemporary market by tightening their grip by 4% in 2021. TVS climbed upto reach the second spot by their impeccable strategy and striking the best inline technology advancements in its products, this enhanced their hold by an additional 1%. When all the competitors were trying their best to carve a position for them in the market but the established player which carries its own legacy and goes by the name Hero Motocorp failed due to its incompetency by putting up a dismal performance and even got dethroned from the 2nd spot and was pushed down to the 4th Spot in the market. Their mediocre sales also handed them a defeat in terms of the market hold by letting off go 6% of its share in the last decade.

Please contact us to get the full Indian Two Wheeler market Report FY 2021 and Forecast

The post Indian Two Wheeler Market Report FY 2021 and Forecast appeared first on Autobei Consulting Group.