Global 2-wheeler market: EVs, growth & competition

Leading companies like Honda, Hero MotoCorp, Bajaj, and Yamaha must focus on R&D, technological upgrades, premium branding, and global expansion to sustain leadership. As the industry shifts toward electric mobility, manufacturers must adapt their strategies to stay competitive, redefining their global roles and positioning.

The global two-wheeler landscape

The world is looking at affordable mobility and rapid urbanization is fueling the expansion of the global two-wheeler market. The competition is becoming fierce, with electric models accelerating growth, driven by technology, innovation and government incentives. While accurate country wise data is difficult to gather and collate, it’s estimated that in 2024, the global 2-wheeler market was around USD 290 billion. The countries with the largest sales included China, India, Indonesia, Vietnam, Thailand, Philippines, Brazill, Italy, Taiwan and Pakistan, followed by Malaysia, Colombia, Mexico, Argentina, USA, etc. Most of these countries have equally large production facilities with the total global two-wheeler production being estimated to be around 60- 65 million units. The major manufacturing hubs are India, China, Indonesia, Vietnam, Japan, Thailand, Philippines, Brazil etc. followed by Nigeria, USA, Taiwan, Malaysia, Colombia, Mexico, Italy, Argentina etc.

The sales distribution and demand rankings for 2024 (based on data collected from multiple sources and normalized through discussions with our global partners) are represented below:

EV market momentum

The global Electric Vehicle Race is heating up and industry stalwarts are making bold moves for a long Leap Forward. The electric revolution is reshaping the industry through newer configurations and greater technological innovations. Everyone is spending a lot on R&D so as not to be left behind. With the advent and growth of EV technologies and applications, the electric scooter market will grow rapidly and may upset the established patterns of manufacturing and sales. Distinct and special-usage markets are emerging across the world, including in developed countries that will disrupt traditional industry landscape. The manufacturers are spreading and localizing their production facilities across hitherto unexplored markets of South America, Asia-pacific and EMEA.

Michael Kantel

Executive Director & Partner, Kestria Germany

'As elsewhere, the German electric motorcycle market is experiencing significant growth. The electric motorcycle registrations rose by 30% in 2024, after going up by 25% in the previous year. Younger consumers, particularly those aged 25 to 40, are leading this shift, accounting for 60% of new electric motorcycle owners. Leading manufacturers such as BMW, Zero Motorcycles, Energica and Harley-Davidson are expanding their presence in the market, supported by advancements in battery technology that now enable ranges exceeding 200 kilometers and fast-charging capabilities reaching 80% capacity in under 30 minutes. While challenges like higher upfront costs remain, industry analysts predict that by 2030, electric motorcycles could make up 15% of the total motorcycle market in Germany.'

Challenges hindering growth

Three major challenges for EV two-wheelers today are (a) Battery Technology with the race for lighter, more affordable, and longer-range batteries; (b) Charging Infrastructure network is still weak and remains a major roadblock, though investing in fast-charging networks is happening now; and (c) Competitive Pressures brought by the influx of new players are driving price wars, impacting profitability.

Sean Casey

Director, Executive Search, Kestria Canada

'2-wheel production companies and more specifically, the e-scooter industry has grown exponentially in Canada. We’re seeing greater eco-friendly initiatives and updates to local regulations to encourage riders to utilize alternative modes of transportation. I’m seeing a lot more cross-industry collaboration between the technology and production sectors with e-bike and e-scooter app-based rental systems across many municipalities.'

Leadership talent deficiency & mobility

While there is a general overlap of manufacturing and sales distribution amongst the major markets, the technology enhancements and R&D talent are not so universally available. Also, the competition from the Four-wheeler industry, its deep pockets and wider challenges are also more attractive to the leading automobile industry leaders. The cross-fertilization of leadership from other industries has also come down as the Auto industry, per se, is less attractive now. Therefore cross-border movement of top talent and sharing of resources in R&D across the markets is becoming essential. This necessitates that the promoters and leaders build a deeper understanding of local cultures, talent availability and industry challenges.

Strategic imperatives

Road ahead and other strategic imperatives for industry players include:

Doubling down on EVs: Accelerated investments in battery R&D, charging networks and electric vehicle production are critical to staying ahead.
Scaling the premium segment: Not only in numbers but also in the premium and performance categories to enhance profitability.
Global brand reinforcement: A strong brand presence in international markets, backed by targeted marketing and product differentiation, is essential for sustained global relevance.
Strengthening leadership in emerging markets: Localized production, deep market penetration and region-specific product offerings will be the key to long-term dominance in Africa, Latin America and Southeast Asia.
Talent: The successful companies still lack focus on building a feet-on-the-ground global multi-market sales and marketing leadership talent that’s constantly in touch with the consumers’ changing expectations and preferences and can guide product innovations and features in real time.

Conclusions

In conclusion, one can say that the leadership of the two-wheeler market will rest with those who will enhance their ability to maintain focus, develop technology and management leadership and rapidly implement strategies based on consumer preferences and needs.

Key players shaping the global two-wheeler market

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