India MBO Two Wheelers Market Outlook to 2027

The report provides a comprehensive analysis of the potential of India MBO 2W Market. The report covers an overview and genesis of the industry, market size in terms of product demand.

Its market segment includes by type of brand, by type of vehicle, by type of Bike, by Engine Capacity, by Financing & Non-financing, by Region, by 2W specification, by gender, by age group, by income level. The report concludes with future market projections of each market segmentation and analyst recommendations

Market Overview

According to Ken Research estimates, the India MBO 2W Market grew at a CAGR of 11.3% from 2017-2022 and is forecasted to grow at a CAGR of 10% in future from 2023-2027F owing to diversification, digitalization & expansion.

• Two -wheeler finance can grow via NBFCs if they offer direct support to the MBOs and provide better interest rates along with other additional support. However, this process is slightly difficult due to the unorganized nature of the market. Rise in the ASP of the vehicle will push the lower income group to look for financing options.
• Servicing of any brand at one place is preferred by end users with on time delivery and better awareness about the customer choices and preferences. By only maintaining inventory for hot sellers will also help the market to go in right direction. Pilot projects of the foreign brands, Industry knowledge from the existing market scenario and Low impact by the sales drop of a particular brand are some Industry associated growth drivers which will drive the market.

Key Trends by Market Segment

By Type of Vehicle: Motorcycle although comprise of largest share in India 2-Wheeler MBO market, scooter segment is expected to rise sharply in coming years as per primaries. As scooter being more convenient to every family member be it female or old age. And being a low price convenient solution for everyone. The growth is estimated to grow by ~15% in next five years.

By Engine Capacity: 100-110cc are the most preferred 2W due to the increasing consciousness about the mileage and fuel usage. Another reason is MBO users have a range of 2W to choose where engine capacity is major factor for lower income group.

Competitive Landscape:

The India 2W MBO Market is highly fragmented major with players occupying almost half of the market. The key players operating in the market are not only competing based on product quality and promotion but are also focusing on strategic moves to hold larger market shares. Some of the major players in the market include Bike Wo Mobility Pvt Ltd, Eco EVOLS Private Limited, M2Go Electric Vehicle Pvt Ltd etc among others.

Future Outlook

During the forecast period of 2022-2027F, it is anticipated that India 2W MBO Market will grow at a CAGR of 10%. The witnessed significant growth during the period is owing to expansion, diversification and digitalization.

High Penetration E2W with multiple players will help the MBO market to grow in the long future. Commuters will be the dominating segment in 2W due to their cheap and economical variants and corresponding larger TAM.