Two-wheelers.

Two- and three-wheeler assembly is the world's largest motorcycle and scooter market by volume, adding an estimated ₹0.7 lakh crore of value in FY26 (0.22% of national GVA) on gross output of about ₹2.3 lakh crore, with India making roughly 25 million units a year, selling 21 million domestically and exporting 4.6 million. Four firms (Hero, Honda, TVS, Bajaj) hold about 85% of the domestic market, and the industry is mature and volume-saturated in India, having only just regained its FY19 peak, so future growth is expected to come from price and mix (premiumisation, electric scooters, exports) rather than from unit volumes. Two-wheelers are the vehicle of the median Indian household (200 per 1,000 people versus 38 cars), are highly rural-income sensitive, and are also among the most profitable segments of Indian manufacturing for the profitable incumbents, even as EV challengers Ola Electric and Ather remain loss-making.

Estimated GVA

0.7 ₹ lakh crore · FY26

Domestic sales

~21 mn units · FY26

Exports

~4.6 mn units (~US$4.5 bn) · FY26

Industry revenue (ex-factory, incl. exports)

~2.3 ₹ lakh crore · FY26

Listed market cap (6 makers)

~6.2 ₹ lakh crore · Jul-2026 spot

Listed PAT

~0.18 ₹ lakh crore · FY26

EV share of sales

~7 % (1.4 mn electric two-wheelers) · FY26

Direct employment (OEM payroll incl. contract)

~0.12 mn · FY26