New Delhi:India has overtaken China to become the world's largest two-wheeler market. Increasing demand in rural areas, favorable monsoon conditions and government initiatives for rural development are the major reasons for this. According to Counterpoint Research, globally, two-wheeler sales grew by four percent (year-on-year) during the first half of 2024. The special thing is that sales increased in India, Europe, North America, South America, West Asia and Africa while sales declined in China and Southeast Asia.

E-cycles are being used more in China

Senior analyst Somane Mandal said that India's two-wheeler market registered a growth of 22 percent during the first half of this year. He said that this strong performance helped India to overtake China and become the world's largest two-wheeler market. Two-wheelers in India saw strong double-digit growth (year-on-year) in the second quarter of this financial year. Two-wheelers with capacity less than 125 cc remain popular in China, but now people there are opting for e-cycles instead of motorcycles and scooters for commuting.

The reason behind the decline

On the other hand, two-wheeler sales have declined in South-East Asian countries Indonesia, Vietnam, Philippines, Thailand and Malaysia due to geopolitical tensions, strict credit norms and cautious consumer spending. The top-10 global two-wheeler manufacturers achieved more than 75 percent of total sales in the first half of the current financial year. Honda has maintained its leading position in the global two-wheeler market. It was followed by Hero MotoCorp, Yamaha, TVS Motor and Yadia. Among the top-10 brands, TVS Motor was the fastest growing brand (growth of 25 percent on an annual basis). Yadia registered the biggest decline (decline of 29 percent on an annual basis) and slipped to the fifth position.