According to a survey by the Society of Indian Automobile Manufacturers (SIAM), India has surpassed China to become the largest two-wheeler market in the world. In contrast to China’s 22.6 million unit sales for the fiscal year 2021–2022, sources indicate that India sold close to 23.7 million units in 2021-2022.
In April, Honda motorcycles overtook Bajaj Auto to take over as the country’s second-biggest bike manufacturer. Honda has also made strides in displacing Hero bikes as the largest two-wheeler manufacturer in India.
How China’s two-wheeler market is declining and India’s booming
The Chinese two-wheeler market has been declining for the past several years for several factors. The country’s rising car demand was the most glaring example, and two-wheeler import costs made it challenging for bike manufacturers to serve the market. As a result, the country’s two-wheeler market was downgraded. In contrast, Bajaj bikes saw a 19% decline in domestic sales to 1,61,930 units in April. With this, the Japanese two-wheeler giant has closed the gap with the market leader Hero MotoCorp to just 12,377 units, although still leading the Pune-based business by a vast margin of 21,336 units.
Royal Enfield also reported its highest-ever quarterly income from operations for the fourth quarter that ended on March 31 at Rs 1,888 crore, an increase of 23.2% over the previous year. The fourth quarter of the last fiscal year saw Royal Enfield produce its best-ever results. Compared to the 1,47,618 motorcycles sold during the same period the previous year, it sold 1,78,345 motorcycles, a gain of 20,8%.
Despite the negative effects of demonetization and the banning of BS-III vehicles, India has surpassed China to claim the top spot, with the two-wheeler industry reportedly suffering a loss of Rs 600 crore. On March 29, the supreme court issued a ban on the sale and registration of automobiles in the BS-III category or those that do not meet Bharat Stage IV (BS-IV) emission standards beginning on April 1. Concerns over vehicle emissions led to the decision.
How Indian two-wheeler market is different from other countries?
The Indian motorbike market is undoubtedly significantly different from the American market. The great majority of motorbikes sold in India’s domestic market have tiny engines with a displacement of less than 125 cubic centimeters. Only one of India’s top ten selling motorcycles, the Royal Enfield classic 350, has a bigger engine.
Though the British employed the Royal Enfield rifle to maintain order in their former colony, India has since claimed the name as its own, and the country has grown to be a major producer. Royal Enfield sold seven hundred thousand motorcycles in India alone in the previous 12 months. The total global output of Harley-Davidson, KTM, BMW, Triumph and Ducati bikes equals that amount.
Indian manufacturers collaborating with European producers
The largest Indian manufacturer, though by no means the only one, is Royal Enfield. Companies like Bajaj, TVS and Mahindra not only produce a decent number of motorcycles independently but also collaborate with European producers to increase their market reach and production capacity. KTM’s collaboration with Bajaj allowed it surpasses BMW and takes the top spot among European motorbike producers. Mahindra has acquired the rights and trademarks of the venerable British motorbike company BSA in an amusing turn of events.
People’s attitude toward motorcycles is a key factor in India’s success with them. In America, motorbikes are seen more as toys than practical modes of mobility. However, it’s the exact opposite in India. Many people’s only means of transportation may be a modest motorcycle. The domestic motorcycle market in China, the world’s largest motorbikes producer, has declined due to the country’s government’s decision to forbid motorcycles from certain city areas and encourage the use of electric bicycles instead.
