India Two-Wheeler Tire Market Research Report: Forecast (2024-2030)

Market Insights & Analysis: India Two-Wheeler Tire Market (2024-30):

India Two-Wheeler Tire Market size is estimated to grow at a CAGR of around 11.2% during the forecast period, i.e., 2024–30. The market's growth is driven by increased traffic jams, the expansion of online delivery services, and electric two-wheelers. Cities like Bangalore, Pune, Mumbai, and others are experiencing the worst traffic conditions in India due to the growing urban population. For instance, according to the TomTom Traffic Index in 2023, Bengaluru and Pune found themselves on the list of the ten worst traffic-hit cities globally in 2023. To combat the heavy traffic, most people are inclined toward adopting two-wheelers in these cities, substantially contributing to the overall market growth & expansion. Moreover, a large number of the working population prefers commuting on scooters, primarily to avoid the burgeoning traffic. While the sales of two-wheelers are increasing, it is directly impacting the India Two-Wheeler Tire Industry positively.

Further, online food delivery services such as Swiggy, Zomato, etc., in India are now increasingly expanding to Tier 2 and Tier 3 cities. This expansion is fueled by increasing smartphone penetration and changing consumer preferences. Thus, the burgeoning expansion of food delivery services into Tier 2 and Tier 3 cities has led to an increased uptake of two-wheelers for delivery purposes. As a consequence, more individuals are using two-wheelers for delivery purposes, which has subsequently increased the wear and tear on their tires. With more two-wheelers being used for delivery services, the demand for replacement tires has risen accordingly.

The push towards electric mobility has gained significant momentum in India due to robust government support aimed at bolstering charging infrastructure and offering tax incentives. This drive towards electrification is particularly prominent in the two-wheeler segment, where manufacturers are increasingly shifting towards electric models to meet both consumer demand and regulatory requirements. Owing to this, several prominent players in the electric two-wheeler market, including Ather, TVS, BajaJ, etc., are expanding their production capacities by focusing on localized production to better cater to the specific needs of the Indian market. For instance,

• In 2023, Ather, a Bengaluru-based electric two-wheeler company, planned to start a new manufacturing facility in Tamil Nadu, with production of around 420,000 units a year.

Consequently, the expansion of the electric two-wheeler industry in the country is estimated to augment the demand for two-wheeler tires in the market during the forecast period.

India Two-Wheeler Tire Market Driver:

Expansion of Fleet by Raid Hailing Companies – Major cities like Pune, Bangalore, Delhi, etc., have been facing traffic congestion issues due to rapid urbanization and strained road infrastructure. These traffic jams devour nearly half of the daily commute time of individuals. As a result, the individuals residing in these cities leave early for work and prefer to use bike taxis for daily commuting purposes. Thus, Bangalore, Delhi, Pune, Mumbai, etc., have emerged as hotbeds for ride-hailing app usage. The high usage of bike taxis in the region is resulting in wear and tear of the tires, enhancing the requirement for replacement at frequent intervals.

In addition, the growing demand for ride-hailing motorcycle taxis is also leading companies, such as Uber, Ola, Rapido, etc., to expand their motorcycle fleets. For instance,

• In 2024, Ola unveiled its e-bike service in Delhi and Hyderabad and planned to deploy 10,000 e-vehicles across these cities over the coming months.

Consequently, the expansion of ride-hailing services is expected to drive tire demand across the country and contribute to the growth of the India Two-wheeler Tire Market in the coming years.

India Two-Wheeler Tire Market Opportunity:

Increasing Popularity of Premium & High-Performance Motorcycles to Offer Lucrative Opportunities – With the rise in disposable income and a growing emphasis on brand value, Indian consumers are increasingly gravitating towards premium motorcycles and sports bikes, indicating a noticeable shift in their preferences. Recognizing this change in consumer preferences, companies such as KTM, Duke, and Keeway have been rolling out their latest lineups of premium bikes in recent years. For instance,

• In 2022, Keeway introduced the K300 N and K300 R bikes, and through the launch of these models, the company aims to attract customers seeking premium and performance-oriented motorcycles.

These bikes often feature larger engines, advanced suspension systems, and higher top speeds, requiring tires capable of handling increased power and delivering optimal performance. Tires with superior grip and sidewall stiffness are essential for achieving optimal cornering performance and maintaining control at high speeds. Therefore, the introduction of high-performance bikes targeting customers seeking premium and performance-oriented motorcycles is expected to offer lucrative opportunities for high-performance tires in the foreseeable future.

India Two-Wheeler Tire Market Challenge:

Presence of Counterfeit & Low-Quality Radial Tires – The India Two-Wheeler Tire Market has been facing a significant challenge due to the presence of counterfeit and low-quality radial tires. These substandard alternatives have been available at a lower price, making them attractive to price-sensitive consumers. The price differential has led consumers to adopt counterfeit radial tires, which has impacted the sales of tires in the market.

In addition, the Indian government has been constantly observed to discover unorganized players producing counterfeit tires of popular brands like CEAT, MRF, etc. Hence, as the number of counterfeit tires has been constantly rising across the nation, the sales of original tires have been negatively affected.

India Two-Wheeler Tire Market Trend:

Growing Focus on Sustainable Tires – The persistent rise in CO2 emissions nationwide, primarily attributed to the growing number of on-road vehicles, has prompted governments to intensify efforts aimed at curbing these emissions to promote sustainability. Consequently, the government and leading two-wheeler manufacturers like Honda, Yamaha, Suzuki, etc., are increasingly embracing the adoption of sustainable tires. Owing to the surging demand for sustainable tires, tire manufacturing companies like JK Tyres, Apollo, Continental, etc., are focusing on their sustainable product portfolios in the country to gain an emerging revenue opportunity. For instance,

• In 2023, Continental launched a series of tires with a very high share of sustainable materials.

These sustainable Two-Wheeler tires tend to improve energy efficiency & reduce fuel consumption since they are designed with lower rolling resistance, which requires less energy to move the vehicle forward.

Furthermore, rising awareness of environmental concerns and the imperative to mitigate carbon emissions and ecological footprints is expected to drive greater adoption of sustainable tires, even among manufacturers of electric two-wheelers. Consequently, the demand for sustainable tires is poised to experience a significant upsurge in the coming years.

India Two-Wheeler Tire Market (2024-30): Segmentation Analysis

India Two-Wheeler Tire Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Vehicle Type:

• Scooter & Moped
• Motorcycle

The scooter and moped segment is anticipated to dominate the market during the forecast period, owing to their rising adoption by commuters with ease of driving and load-carrying capabilities. Besides, the increasing number of working females opting for scooters as a hassle-free conveyance mode further propels their demand and positively impacts overall market growth. Furthermore, the growing inclination toward high-end bikes, especially among the young generation, is another critical aspect that is booming the sales of premium tires exponentially across the country, thereby augmenting the size & volume of the market.

The rising presence of e-commerce platforms in rural regions has stimulated the requirement for last-mile delivery services. With an expanding number of rural inhabitants turning to online shopping for various items like groceries, electronics, and apparel, there is a heightened necessity for prompt and effective delivery solutions to meet these demands. Consequently, this trend has spurred the utilization of scooters for delivery tasks, thereby amplifying the demand for two-wheeler tires in the foreseeable future.

Based on Demand Type:

• OEMs
• Replacement

The OEM segment is expected to witness the fastest market growth in the forecast years. India's large population, particularly the young demographic segment, drives the demand for two-wheelers as a primary mode of transportation. With a growing middle class and increasing urbanization, more individuals are seeking affordable and convenient commuting options, leading to demand for two-wheelers across the country. As a result, two-wheeler manufacturers like Honda, Bajaj, TVS, etc., have been increasing their production capacity to capture the market. For instance,

• In 2024, Honda Motorcycle commissioned 6.5 lakh additional production capacity at the Gujarat Plant.

This expansion of two-wheeler production across the country is driving the market share of OEMs in the Indian Two-Wheeler Tire Market.

Further, OEMs like Royal Enfield, KTM, Honda, etc., are increasingly introducing new models or variants of existing models to cater to evolving consumer preferences and market trends. Each new model requires a fresh supply of tires, contributing to the overall demand for two-wheeler tires in the OEM segment in the coming years.

India Two-Wheeler Tire Industry Recent Development:

• In 2023: TVS Eurogrip announced its entry into the premium motorcycle tire segment, with the launch of its newest range of motorcycle tires.
• In 2022: Apollo introduced EV tires for passenger cars and the two-wheeler market in India.

Gain a Competitive Edge with Our India Two-Wheeler Tire Market Report

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2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
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