Indian Two Wheeler Market Report FY 2021 and Forecast

Publish Date : May, 2021

When we take a look at the two-wheeler sector performance in the Indian scenario the compound annual growth rate stands at 1.3%, and this is the cumulative growth depicted considering the data from the last 10 years i.e the financial year between 2012 to 2021. Considering the products that had a good run in the market during this tenure are the Scooter with a 6.4% CAGR, Moped flaunted a negative dip with -2.5% and overall the Motorcycle segment didn’t quite find an Avenue for growth as it saw its CAGR in a very worsened state of 0.1% in the recently concluded decade.

Indian Two Wheeler Sales Trend Analysis

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.Indian Two Wheeler Export Trend and OEM wise Market Share FY 2021

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.OEM Indian Two Wheeler Sales Volume from FY 2012 to FY 2021

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.Indian Motorcycle and Scooter OEMs Market Share Analysis of last 10 Years FY 2021 to FY 2021

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.Indian Motorcycle OEMs Market Share Trend FY 2021 to FY 2021

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.

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