India’s two-wheeler tyres had the most significant 20% share of Tyre units in the Indian Automotive Tyre segment in FY 2025. This 20% tyre Two-Wheeler Market Share is double compared to FY 2021. The Indian Two-Wheeler tyre market was valued at 2.85 billion USD in FY 2025 and is expected to reach 5.5 billion USD by FY 2030. A 13.9% CAGR will likely be registered from FY 2025 to FY 2030.

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 Indian Two-Wheeler Market has more than 300 variants. Around 90% of sales are from the model variants with a price below 150000 INR. Only 7 Models have a 50% market share in FY 2025. The other 125 models have a balanced 50% market share.

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 Indian two-wheeler market reached 19.1 million units and a value of USD 21.141 billion in FY 2025. The industry grew by 7% CAGR from FY 2021 to FY 2025, excluding Electric 2W. The scooter segment showed a 13% CAGR, and the motorcycle segment had a 5% CAGR from FY 2021 to FY 2025.

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.