Press Release

India Two-Wheeler Tire Market to Surge at a CAGR of Around 11.2% During the 2024-30

The India Two-Wheeler Tire Market is anticipated to grow at a CAGR of about 11.2% during the forecast period of 2024–30, cites MarkNtel Advisors in the recent research report. The market's expansion is propelled by heightened traffic congestion, the proliferation of online delivery services, and the growth of electric two-wheelers. Cities like Bangalore, Pune, and Mumbai are witnessing some of India's worst traffic conditions due to escalating urbanization. According to the TomTom Traffic Index for 2023, Bengaluru secured the 6th position with an average travel time of 28 minutes and 10 seconds for a 10-kilometer journey, while Pune closely followed at 7th place with a travel time of 27 minutes and 50 seconds. To tackle heavy traffic, many individuals are opting for two-wheelers in these cities, significantly bolstering market growth. Additionally, a considerable portion of the working population prefers scooters for commuting to evade the burgeoning traffic. As two-wheeler sales surge, the India Two-Wheeler Tire Market experiences a positive impact.

Moreover, online food delivery platforms like Swiggy, Zomato, and others are progressively extending their reach to Tier 2 and Tier 3 cities in India. This expansion is driven by the rising penetration of smartphones and evolving consumer preferences. For instance, in 2023, Swiggy, with Apna, hired gig workers from Tier 2 and Tier 3 cities to strengthen its delivery workforce in these cities. Consequently, the burgeoning growth of food delivery services in these cities has resulted in a heightened adoption of two-wheelers for delivery tasks. Consequently, an increasing number of people are utilizing two-wheelers for delivery purposes, leading to increased wear and tear on their tires. With the escalating use of two-wheelers for delivery services, there has been a corresponding increase in the demand for replacement tires.

Additionally, the movement toward electric mobility has gained significant traction in India, driven by robust government support aimed at enhancing charging infrastructure and providing tax incentives. This shift towards electrification is particularly notable in the two-wheeler segment, where manufacturers are increasingly transitioning to electric models to fulfill both consumer demand and regulatory mandates. As a result, several prominent players in the electric two-wheeler market, such as Ather, TVS, and Bajaj, are ramping up their production capacities by prioritizing localized manufacturing to better serve the specific requirements of the Indian market. Consequently, the expansion of the electric two-wheeler industry in the country is projected to stimulate the demand for two-wheeler tires in the market in the coming years, further states the research report, “India Two-Wheeler Tire Market Analysis, 2024.”

Segmentation Analysis

Scooter and Moped Segment to Capture Prominent Share of the Market

Based on the vehicle type segment, the market is further bifurcated into, scooter and moped, and motorcycle. The scooter & moped segment is poised to lead the market, driven by increasing adoption among commuters due to their ease of driving and capacity for carrying loads. Additionally, the rising number of working women choosing scooters as a convenient mode of transportation further drives demand and positively influences overall market growth. Moreover, the increasing preference for high-end bikes, particularly among the youth, is another significant factor fueling the substantial increase in premium tire sales nationwide, consequently boosting the market.

The increasing penetration of e-commerce platforms in rural areas has sparked a need for last-mile delivery services. As more rural residents engage in online shopping for various goods, such as groceries, electronics, and clothing, there is a growing demand for swift and efficient delivery solutions to meet these needs. Consequently, this trend has led to an increased reliance on scooters for delivery purposes, thereby driving up the demand for two-wheeler tires in the coming years.

OEM Segment to Seize a Major Share of the Market

The OEM segment is anticipated to experience the most rapid market growth. India's sizable population, particularly its youthful demographic segment, propels the demand for two-wheelers as the primary mode of transportation. With the burgeoning middle class and escalating urbanization, a larger number of individuals are in search of cost-effective and convenient commuting alternatives, fueling the demand for two-wheelers nationwide. Consequently, manufacturers such as Honda, Bajaj, TVS, and others have been augmenting their production capacities to capitalize on the market opportunity. For instance, in 2023, Bajaj Auto has drawn up a strategy to augment the production capacity of its first premium offering. Hence, the proliferation of two-wheeler production throughout the nation is propelling the market dominance of OEMs in the Indian Two-Wheeler Tire Market.

Moreover, OEMs such as Royal Enfield, KTM, Honda, and others are progressively launching new models or variants of existing ones to meet changing consumer preferences and market dynamics. Each new model necessitates a new supply of tires, thereby adding to the overall demand for two-wheeler tires in the OEM segment in the foreseeable future.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including MRF Ltd., Apollo Tyres Corporate, CEAT Limited, TVS Srichakra Limited, Michelin, Pirelli Tyres S.p.A, JK Tyres and Industries, Goodyear Tire and Rubber Company, Continental AG, Bridgestone Corporation, Ralco Tyres, Maxxi Tyres, and Others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?