The Indian two-wheeler market is undergoing a transformation. According to a recent analysis by Crisil Intelligence, the demand for premium motorcycles is steadily climbing. These motorcycles — with engine capacities above 150cc — held a 19 percent share of the total two-wheeler market in the last fiscal year. That’s a significant jump from 14 percent in fiscal 2019.
Volume-wise, the growth is just as noteworthy. Premium motorcycle sales increased from 19 lakh units in 2019 to 23 lakh units in the most recent fiscal year. Crisil projects that by 2030, the premium motorcycle segment could account for 22 percent of the total market.
Economy Segment Slips as Rural Demand Weakens
While premium bikes are accelerating, the economy motorcycle segment is facing a slowdown. These models, typically under 150cc and popular in rural areas, saw their market share shrink from 62 percent in fiscal 2019 to just 46 percent in the last fiscal. Sales volumes also fell from 84 lakh units to 56 lakh units in the same period.
The reasons behind this drop are multifaceted. Crisil Intelligence points to weaker rural demand, combined with a sharp increase in vehicle prices over the years. These price hikes are attributed to multiple regulatory and economic changes — including the shift from BS-IV to BS-VI emission norms, upgraded safety features, and rising input costs during the commodity super cycle.
Pre-COVID vs Post-COVID Recovery: A Mixed Picture
The premium motorcycle segment has not only recovered from the pandemic slowdown but surpassed its pre-COVID sales by 22 percent. In comparison, total two-wheeler sales reached 94 percent of their pre-pandemic levels, while the broader motorcycle category recovered up to 90 percent.
However, entry-level economy motorcycles are still lagging behind. Their recovery stood at only 67 percent of pre-pandemic figures, highlighting the continued challenges in this category.
Key Market Trends Fueling Premium Segment Growth
The rising appeal of premium motorcycles is not accidental. Several demand and supply-side factors are contributing to this trend.
Demand Drivers
According to Crisil Intelligence, the following consumer trends are supporting the shift:
- Steady rise in disposable incomes, especially in urban India
- Young demographic with evolving lifestyle choices
- Increased global exposure influencing buyer preferences
- Sustained demand from consumers with high purchasing power
Supply Drivers
Manufacturers have been quick to adapt by offering a wider range of models in the premium category. The number of available premium motorcycle models grew from 23 in fiscal 2019 to 35 in the last fiscal year — providing buyers with more choices and tailored features.
Segment-Wise Comparison: Then vs Now
To better understand the changing landscape, here’s a simple comparison between fiscal 2019 and the most recent fiscal year:
Market Segment Comparison
| Segment | FY 2019 | Latest Fiscal Year | Change |
|---|---|---|---|
| Premium Motorcycles (›150cc) | 14% (19 lakh units) | 19% (23 lakh units) | Rising |
| Economy Motorcycles (≤150cc) | 62% (84 lakh units) | 46% (56 lakh units) | Declining |
| Total Two-Wheeler Recovery vs Pre-COVID | – | 94% | Moderate |
| Premium Segment Recovery vs Pre-COVID | – | 122% | Strong |
| Economy Segment Recovery vs Pre-COVID | – | 67% | Weak |
Outlook: Where Is the Market Headed?
Looking ahead, Crisil Intelligence expects the upward momentum in premium motorcycles to continue through 2030. The mix of favorable economic conditions, a youthful consumer base, and evolving aspirations is likely to keep the segment growing.
On the other hand, unless there is a significant revival in rural incomes or a shift in pricing strategies, the economy motorcycle segment may continue to face headwinds.
DailyWheels Insight
At DailyWheels, we’ve been closely tracking the evolution of India’s two-wheeler market. This data-driven shift toward premium motorcycles reflects broader consumer behavior trends — where buyers are increasingly looking for not just transportation, but an experience. As brands adapt and buyers evolve, the road ahead looks promising, especially for motorcycles that offer a blend of power, style, and sophistication.