Two-wheeler Industry - Snapshot

2 WHEELER INDUSTRY : SNAPSHOT

Industry Size and Growth
Share of different segments

Market Share Trends

Future Growth Outlook

The size of 2 wheeler industry in India was Rs, 755 bn in 2014-15

with the sales volume of 18 million units.

INDUSTRY SIZE AND GROWTH

Revenue of the Indian two-wheelers industry to have grown to Rs 755 billion in 2014-

15 with sales volume of 18 million units.

Overall growth was mainly driven by a 7.9 per cent CAGR in motorcycle sales as well
as a strong 25.2 per cent CAGR in the scooters segment during the same period.

Factors which contributed to growth in the two-wheelers industry include:

Aggressive capacity expansions

Model launches at competitive prices

Expansion of dealership network

Strong growth in exports

Though motorcycles still form the largest category, share of scooters

have increased significantly.

SHARE OF DIFFERENT SEGMENTS

Source: SIAM

Hero Moto corps market share has been decreasing steadily while
HMSIs share has increased significantly.

OVERALL MARKET SHARE

Source: SIAM
5

2-wheeler industry is expected to grow at a CAGR of 8-10% between

2014-15 to 2019-20 with Scooters registering faster growth.
FUTURE GROWTH OUTLOOK
Over the next five years, two-wheeler volumes set to record a 8-10% CAGR,
reaching 25 million units by 2019-20.

Motorcycle sales are expected to register 6-8 % CAGR, propelled by rural

demand; while scooter sales are expected to record a 14-16% CAGR, given
the convenience factor, higher utility perceived in intra-city transport,

growth in demand from urban and semi-urban areas, and better rural
infrastructure.
Mopeds are expected to slow to 4-6 % CAGR.