Asia-Pacific Two Wheelers Market Outlook, 2030

The Asia-Pacific (APAC) region stands as the epicenter of the global two-wheeler industry both in terms of volume and significance. Encompassing some of the world's most populous and rapidly urbanizing nations, including India, China, Indonesia, Vietnam, and Thailand, the region accounts for the lion’s share of global two-wheeler production and consumption. Two-wheelers in APAC are not simply vehicles of choice; they are integral to the everyday lives of millions, offering affordable, efficient, and accessible mobility solutions.

Whether it’s navigating through the congested lanes of Jakarta, the narrow alleys of Ho Chi Minh City, or the bustling roads of Mumbai, the two-wheeler has become synonymous with personal freedom and economic utility in the region. Another emerging trend in the APAC two-wheeler industry is the growing importance of digitalization and connectivity. Smart features such as GPS tracking, app-based diagnostics, theft alerts, and connected ride analytics are becoming more common, especially among electric and premium models. Tech-savvy consumers, especially in urban areas, are increasingly valuing digital interfaces and seamless integration with mobile apps. Additionally, the rise of online two-wheeler retail, financing platforms, and subscription-based ownership models are changing how people buy and use motorcycles and scooters, particularly among younger generations.

According to the research report “Asia-Pacific Two-wheeler Market Outlook, 2030” the market is projected to grow with 5.39% CAGR by 2025-30.The electrification of two-wheelers is gaining traction across the APAC region, albeit at varying paces. While China is already a mature market for electric models, other countries are catching up. India, for example, has seen a surge in electric scooter startups such as Ola Electric, Ather Energy, and Revolt Motors. Government incentives under schemes like FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) have begun to shift both consumer behavior and manufacturer strategies.

However, challenges such as limited charging infrastructure, battery costs, and performance anxieties continue to restrain mass adoption. In Southeast Asia, electric two-wheelers are slowly gaining attention, especially for commercial use cases like delivery services, where cost-per-kilometer is a decisive factor. Pilot projects, government initiatives, and foreign investments are beginning to build a foundation for EV growth, signaling a slow but promising transition. Despite the immense scale and opportunity, the APAC two-wheeler industry faces several challenges. Road safety is a critical concern, with two-wheeler accidents constituting a large percentage of traffic-related fatalities in the region.

In many countries, the lack of dedicated infrastructure such as bike lanes, traffic enforcement, and rider education programs exacerbates the problem. Environmental concerns, too, are mounting. While two-wheelers are more fuel-efficient than cars, their sheer numbers and use of outdated emission technologies in some regions contribute significantly to urban air pollution. Stricter emission regulations like Bharat Stage VI in India and similar policies in ASEAN nations are pushing manufacturers toward cleaner technologies and better compliance.

Market Drivers

• Essential Mobility for Masses: In densely populated and developing countries like India, Vietnam, Indonesia, and the Philippines, two-wheelers are a primary mode of transportation. They provide an affordable and fuel-efficient solution for millions with limited access to public transit or private cars, especially in rural and semi-urban areas.
• Gig Economy and Delivery Boom: The rapid expansion of e-commerce, food delivery, and ride-hailing platforms (e.g., Gojek, Grab, Swiggy, Zomato) has fueled massive demand for two-wheelers. Motorcycles and scooters are now crucial tools for urban gig workers, leading to increased sales and fleet demand in metro areas.

Market Challenges

• Road Safety and Informal Infrastructure: Many APAC nations struggle with high accident rates, poor road quality, lack of dedicated bike lanes, and informal traffic norms. These safety concerns deter new riders and pose serious risks for existing users, especially delivery drivers and low-income commuters.
• Slow EV Adoption Outside China: While China leads in electric two-wheeler adoption, countries like India and Southeast Asian nations face limited charging infrastructure, high battery costs, and range anxiety. Despite policy push, electric adoption remains constrained by affordability and lack of ecosystem readiness in many parts of the region.

Market Trends

• Localization and Regional Manufacturing Hubs: Countries like India, Vietnam, and Thailand are becoming major production and export hubs for two-wheelers, not just for domestic use but also for markets in Africa, South America, and the Middle East. Manufacturers are investing heavily in local assembly and supply chains to reduce costs and increase scalability.
• Startups Driving Electric Innovation: Homegrown startups such as Ola Electric, Ather Energy, and Yadea are leading the charge in EV innovation with localized models, swappable batteries, and mobile app integration. These startups are not only disrupting legacy players but also shaping the future of mobility in the APAC region.

Motorcycles dominate the Asia-Pacific two-wheeler market due to their affordability, fuel efficiency, and practicality in densely populated and traffic-congested urban areas.

The Asia-Pacific region, home to some of the world’s most populous and rapidly urbanizing countries such as India, China, Indonesia, Vietnam, and the Philippines, has seen motorcycles become the primary mode of personal transportation for millions. This dominance is mainly attributed to the motorcycle’s cost-effectiveness, low fuel consumption, and ability to navigate through narrow, congested streets, which are common in many urban and semi-urban parts of the region. For many lower and middle-income households, motorcycles represent a financially accessible alternative to cars, offering essential mobility without the burden of high acquisition or maintenance costs.

Furthermore, in rural areas with limited public transport infrastructure, motorcycles serve as a crucial tool for mobility and livelihood, often used for commuting, small-scale logistics, and even agricultural support. The rise of motorcycle-based services such as ride-hailing, courier, and food delivery has also significantly boosted demand across cities. Additionally, governments in the region have generally maintained minimal restrictions on motorcycle usage, and local manufacturers have played a major role in offering a wide variety of models tailored to regional needs.

The < 150cc segment leads the Asia-Pacific two-wheeler market due to its affordability, fuel efficiency, and suitability for daily commuting in both urban and rural settings.

In the Asia-Pacific region, where a significant portion of the population relies on two-wheelers as their primary mode of transport, the < 150cc category has emerged as the most dominant due to its cost-effectiveness, excellent mileage, and ease of use. These motorcycles and scooters are particularly favored in densely populated nations like India, Indonesia, Vietnam, and the Philippines, where daily commuting is essential and fuel economy is a top priority for most consumers. The vehicles in this category are priced attractively, making them accessible to a broad demographic, including students, working-class individuals, and small business owners.

Their lightweight and compact design makes them ideal for maneuvering through crowded city streets and tight rural roads, where larger vehicles are less practical. Moreover, they require low maintenance and have modest insurance and registration costs, making them even more appealing to cost-conscious buyers. In addition, governments and local manufacturers in many APAC countries promote these models through favorable policies and financing schemes, further driving adoption. The < 150cc two-wheelers also dominate the booming delivery and logistics sector, as they offer the perfect balance of affordability and utility.

Internal Combustion Engine (ICE) two-wheelers dominate the Asia-Pacific market due to their established affordability, fueling infrastructure, and strong presence of local manufacturers offering a wide range of reliable models.

ICE-powered two-wheelers continue to lead the Asia-Pacific market because they offer a well-established, cost-effective, and accessible solution to the region’s vast transportation needs. In countries like India, Indonesia, Vietnam, and Thailand where two-wheelers are often a necessity rather than a lifestyle choice ICE vehicles have long been the default mobility option for millions. Their lower upfront costs compared to electric vehicles (EVs), combined with widespread availability and familiarity among consumers and mechanics, make them the most practical choice for budget-conscious buyers.

The fueling infrastructure for petrol-powered two-wheelers is deeply embedded and readily accessible, even in rural and remote areas, whereas EV charging infrastructure remains underdeveloped and inconsistent across much of the region. Additionally, local manufacturers such as Hero MotoCorp, Honda, Yamaha, and Bajaj Auto have built extensive sales and service networks, offering dependable ICE models tailored to local conditions.

These companies benefit from economies of scale and decades of market experience, which help keep production costs low and consumer trust high. While electrification is gradually increasing due to environmental concerns and government incentives, ICE two-wheelers remain the backbone of personal and commercial mobility in the Asia-Pacific due to their durability, easy maintenance, and unmatched convenience in diverse terrains and income segments.

China leads the Asia-Pacific two-wheeler market due to its massive manufacturing capacity, early adoption of electric two-wheelers, and strong domestic demand driven by urbanization and e-commerce growth.

China’s dominance in the Asia-Pacific two-wheeler market stems from a combination of industrial strength, innovation in electric mobility, and evolving urban lifestyles. As the world’s largest manufacturer of two-wheelers, China benefits from high-volume production capabilities, robust supply chains, and cost advantages, allowing it to serve both domestic and international markets efficiently. Over the last decade, China has also emerged as a global leader in electric two-wheelers, thanks to proactive government policies promoting clean energy, generous subsidies, and restrictions on ICE vehicles in major cities.

This transition has spurred the rise of domestic electric brands like Yadea, NIU, and AIMA, which offer affordable, efficient, and smart mobility solutions. In urban areas, the proliferation of app-based food delivery and courier services has further accelerated the demand for two-wheelers, especially electric scooters that are low-maintenance and ideal for stop-and-go traffic.

Furthermore, the country’s growing middle class, rapid urbanization, and infrastructure investments have expanded the customer base for both utilitarian and premium two-wheeler segments. China’s strategic emphasis on R&D and technological integration, such as IoT-connected scooters and battery swapping systems, has also kept it at the forefront of innovation.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Two Wheelers Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Motorcycle
• Scooters
• Electric Two-Wheeler
• Mopeds

By Engine Capacity

• < 150 CC
• 151 -400 CC
• 401- 800CC
• > 801 CC

By Price

• ICE
• Electric

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.