Indian Two Wheeler Product Strategy

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