New Delhi: India has overtaken China as the largest two-wheeler market globally, driven by increasing demand in rural areas. Favourable monsoon conditions and government initiatives aimed at rural development have played a crucial role, according to a report released on Friday.

The global two-wheeler market grew by 4% year-on-year (YoY) in the first half of 2024, according to Counterpoint Research. While regions like India, Europe, North America, Latin America, and the Middle East and Africa saw positive growth, China and Southeast Asia (SEA) experienced a decline in sales.

India's two-wheeler market grows by 22%

Senior analyst Soumen Mandal highlighted that India's two-wheeler market experienced a substantial 22% YoY growth in the first half of 2024. “This strong performance allowed India to surpass China and become the world’s largest two-wheeler market,” he said.

In the second quarter of this financial year, two-wheeler sales in India continued to show double-digit growth, further boosting the market's dominance.

Shift in consumer preferences in China

In China, two-wheelers under 125cc remain popular, but consumers are increasingly opting for e-bicycles over motorcycles and scooters for daily commuting. This shift has led to a temporary slowdown in the Chinese two-wheeler market, particularly in the electric segment.

In South East Asia, major markets such as Indonesia, Vietnam, the Philippines, Thailand, and Malaysia saw a decline in two-wheeler sales due to geopolitical trade tensions, stricter lending criteria, and cautious consumer spending amid economic uncertainty.

Top global manufacturers maintain dominance

The top-10 global two-wheeler manufacturers captured over 75 per cent of sales during H1 2024.

Honda maintained its leading position in the global two-wheeler market, followed by Hero MotoCorp, Yamaha, TVS Motor and Yadea.

TVS Motor was the fastest-growing brand (up 25 per cent YoY) among the top-10 brands while Yadea declined the most (down 29 per cent YoY), slipping to fifth position.

Neil Shah, Vice President of Research, said that electrification is on the rise, and by 2030, we expect four out of 10 two-wheelers sold to be electric.

“This shift is also accelerating the adoption of embedded cellular connectivity in the two-wheeler segment. As the automotive industry advances toward C-V2X technology, the two-wheeler segment will follow suit,” he noted. IANS