India Two-Wheeler Loan Market to Grow with a CAGR of 6.78% through 2030F

The India Two-Wheeler Loan Market is driven by rising disposable incomes, increasing urbanization, growing demand for affordable transportation, and favorable financing options from lenders.

According to TechSci Research report, “India Two-Wheeler Loan Market – By Region, Competition, Forecast & Opportunities, 2020-2030F”, the India Two-Wheeler Loan Market was valued at USD 8.34 Billion in 2024 and is expected to reach USD 14.89 Billion by 2030 with a CAGR of 6.78% during the forecast period. The India Two-Wheeler Loan market has experienced substantial growth in recent years, owing to the rising government support across the region. The government has introduced various initiatives to promote vehicle ownership, including subsidies for electric two-wheelers, tax exemptions, and schemes to encourage financial inclusion. These measures have made it easier for consumers, especially in rural and semi-urban areas, to access financing for two-wheelers. Also, the government's push for infrastructure development, such as better road networks and charging stations for electric vehicles, further boosts consumer confidence in purchasing two-wheelers. With favorable policies, the government plays a crucial role in expanding the market by making two-wheeler loans more accessible and affordable.

The India Two-Wheeler Loan market is driven by the rising disposable income across the region. As India’s economy continues to grow, particularly among the middle class, more individuals have the financial capacity to invest in personal transportation. With increasing incomes, consumers, especially in urban and semi-urban areas, are seeking affordable, efficient, and convenient mobility solutions, leading to a surge in two-wheeler demand. The affordability of two-wheelers, combined with rising disposable incomes, makes them an attractive choice for many, particularly young professionals, students, and working individuals. Also, higher disposable income allows consumers to comfortably take on loan repayments with flexible terms offered by lenders. As purchasing power continues to rise, the two-wheeler loan market is expected to grow, making two-wheelers accessible to a larger portion of India’s population.

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The India Two-Wheeler Loan Market is segmented into type, provider type, percentage of amount sanctioned, tenure, and region.

Based on type, used two-wheeler is the fastest-growing segment in the India Two-Wheeler Loan market. As consumers seek more affordable alternatives to new vehicles, the demand for pre-owned two-wheelers has increased significantly. Used motorcycles and scooters offer a cost-effective solution for budget-conscious buyers, especially in rural and semi-urban areas. Financial institutions have responded by providing attractive loan schemes for used two-wheelers, offering lower interest rates, flexible repayment terms, and easier eligibility criteria. With rising fuel prices and economic uncertainty, more consumers are opting for used two-wheelers, driving the growth of this segment in the overall two-wheeler loan market.

Based on region, South region of India is the fastest growing in the Two-Wheeler Loan market, driven by factors such as increasing urbanization, rising disposable incomes, and a growing preference for two-wheelers as a primary mode of transportation. Cities like Chennai, Bangalore, and Hyderabad are experiencing rapid economic growth, leading to higher demand for affordable mobility solutions. The South also has many tech-savvy young professionals and students, driving the adoption of two-wheelers. Financial institutions are offering competitive loan schemes to cater to this demand, further boosting the market. As these trends continue, the South region is expected to maintain its growth momentum in the two-wheeler loan sector.

Major companies operating in India Two-Wheeler Loan Market are:

• HDFC Bank Ltd
• ICICI Bank
• Kotak Mahindra Prime Limited
• Axis Bank Limited
• Bajaj Finance Limited
• Tata Capital Limited
• Hero Fincorp
• Muthoot Capital Services Limited
• Standard Chartered Bank
• IDFC FIRST Bank Ltd

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“The India Two-Wheeler Loan Market is driven by the growing middle-class population across the region. As India’s middle class expands, there is a surge in demand for affordable and convenient transportation solutions, with two-wheelers being a popular choice. Rising incomes, combined with increasing urbanization and lifestyle changes, make owning a two-wheeler more accessible to a larger portion of the population. The middle class, particularly in urban and semi-urban areas, is increasingly turning to two-wheelers due to their affordability, fuel efficiency, and ability to navigate traffic-congested cities. Financial institutions are responding by offering attractive loan products, such as lower interest rates, flexible repayment options, and minimal documentation, making it easier for the growing middle class to finance their two-wheeler purchases. As this demographic continues to expand, the two-wheeler loan market is expected to see sustained growth.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“India Two-Wheeler Loan Market By Type (New Two Wheeler, Used Two Wheeler), By Provider Type (Banks, Non-Banking Financial Companies, Original Equipment Manufacturer, Others), By Percentage of Amount Sanctioned (Less Than 50%, More Than 50%), By Tenure (Less Than 3 Years, 3 Years, More than 3 Years), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of India Two-Wheeler Loan Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Two-Wheeler Loan Market.

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