What Contributed to the 5% Rise in Premium Motorcycle Market Share in India?
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Synopsis
Discover how India's premium motorcycle market share has grown significantly, fueled by rising demand and an expanding model selection. This report highlights key trends and future projections for the motorcycle industry in India, making it a must-read for enthusiasts and investors alike.
Key Takeaways
- Premium motorcycle market share has risen to 19%.
- Sales volume increased to 2.3 million units.
- Significant growth is anticipated by 2030.
- Weak rural demand affects economy motorcycle sales.
- New models in the premium segment are on the rise.
New Delhi, July 10 (NationPress) The market share of premium motorcycles (those with an engine capacity exceeding 150 cc) surged to 19% during the fiscal year 2024-25, marking an increase from 14% in the fiscal year 2018-2019. The volume also rose significantly, reaching 2.3 million units from 1.9 million units, driven by escalating demand and a rapidly expanding array of model options, as noted in a Crisil report released on Thursday.
This growth stands in stark contrast to the overall motorcycle market, which saw a decline in volume from 13.6 million units in fiscal 2019 to 12.3 million units in fiscal 2025, alongside a decrease in total two-wheeler sales from 21.2 million units to 19.9 million units, according to the report.
Last fiscal year, premium motorcycle sales exceeded pre-Covid levels by 22%, while the total two-wheeler sales reached 94% of pre-pandemic levels, and motorcycle sales stood at 90%.
Looking ahead, the market share of premium motorcycles is anticipated to rise to approximately 22% by fiscal 2030. This growth is expected to be supported by favorable macroeconomic trends, increasing disposable incomes, greater global exposure among consumers, and a youthful demographic, as per the report.
Crisil Intelligence director Pushan Sharma stated, "The demand for premium motorcycles is being propelled by a growing preference among consumers with strong purchasing power, which remained intact even during the pandemic. On the supply side, the expanded range of options for consumers has played a significant role. Notably, the number of motorcycle models in the premium segment rose to 35 last fiscal from 23 in fiscal 2019. We expect these favorable trends to continue over the next five years."
Conversely, the market share for economy motorcycles declined to 46% last fiscal from 62% in fiscal 2019, with volumes dropping to 5.6 million units from 8.4 million units, largely due to weakened rural demand and rising prices.
Crisil Intelligence director Mohit Adnani remarked, "Weak rural demand presents a significant challenge for entry-level motorcycles. Rural incomes have not kept pace with the substantial 65-70% increase in prices of economy models, necessitated by the transition to Bharat Stage (BS) IV to BS VI standards, the implementation of safety regulations, and the ongoing commodity super cycle. Consequently, sales of these motorcycles only recovered to 67% of pre-pandemic levels last fiscal."
Point of View
I emphasize the importance of understanding emerging trends in our economy. The significant rise in the market share of premium motorcycles reflects evolving consumer preferences and economic resilience, highlighting a shift in disposable income and purchasing power, particularly in urban areas. While challenges remain in the economy segment, the overall landscape is shifting, and this report offers valuable insights for stakeholders in the automotive industry.
NationPress
05/09/2025
Frequently Asked Questions
What factors contributed to the increase in premium motorcycle market share in India?
The increase in premium motorcycle market share in India can be attributed to rising consumer demand, an expanding range of available models, and the purchasing power of buyers who maintained their financial stability during the pandemic.
How does the premium motorcycle market compare to the overall motorcycle market?
While premium motorcycle sales have surged, the overall motorcycle market has seen a decline in volume, illustrating a contrasting trend where premium segments outperform the economy segments amidst changing consumer preferences.
What is the projected market share for premium motorcycles by 2030?
The market share for premium motorcycles is expected to increase to approximately 22% by fiscal 2030, driven by favorable economic conditions, rising disposable incomes, and a youthful demographic.
What challenges are faced by economy motorcycle sales?
Economy motorcycle sales are challenged by weak rural demand, rising prices, and the inability of rural incomes to keep pace with the significant price increases due to regulatory changes.
How many models are available in the premium motorcycle segment?
Currently, there are 35 motorcycle models available in the premium segment, up from 23 models in 2019, reflecting the increased options for consumers.
