South Africa Two-Wheeler Market – Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Scooter/Moped, Motorcycles), By Propulsion Type (ICE, Electric), By Region, By Competition, 2020-2030F

Market Overview:

The South Africa Two-Wheeler Market was valued at USD 815.49 Million in 2024 and is expected to reach USD 1508.88 Million by 2030 with a CAGR of 10.80% during the forecast period. The South Africa two-wheeler market is undergoing a steady transformation, fueled by increased urbanization, rising traffic congestion, and the growing need for economical mobility solutions. For instance, In 2023, South Africa’s automotive industry set a record for vehicle exports, with 399,594 units exported and total production reaching 633,332 vehicles. This marked a remarkable recovery from 2020’s 441,822 vehicles produced. The industry generated USD 14.26 billion in revenue from vehicle and component exports, reflecting a 19.1% growth compared to 2022. Exports to South African countries totaled 25,381 vehicles, highlighting strong potential for expansion under the South African Continental Free Trade Area (AfCFTA). The automotive sector employs 116,069 people and contributes 3.2% to the GDP. Noteworthy investments in 2023 included BMW’s USD 236.84 billion for X3 Plug-in Hybrid production, Stellantis’s 157.89 billion for a new Coega facility, and Ford’s USD 273.68 billion for PHEV production at the Silverton Assembly Plant. With the cost of owning and maintaining four-wheel vehicles becoming increasingly burdensome for many urban residents, two-wheelers have emerged as a viable and practical alternative for daily commuting. The younger working population, especially in densely populated urban centers, is embracing motorcycles and scooters for their convenience, fuel efficiency, and ability to navigate through congested streets with ease. The rise in e-commerce and food delivery services has also contributed significantly to this trend, as businesses seek agile and cost-effective delivery options. Technological advancements in two-wheeler manufacturing, including better mileage, improved safety features, and modern design aesthetics, are appealing to a wide segment of consumers looking for performance and value.

Electric two-wheelers are creating new opportunities in the market as consumers become more environmentally conscious and fuel prices remain volatile. Initiatives aimed at promoting electric mobility and reducing dependence on fossil fuels are paving the way for increased adoption of battery-powered scooters and motorcycles. These vehicles offer long-term savings on operational costs and are gradually gaining traction among urban riders and small-scale commercial users. Another growth driver is the expansion of financing options and digital purchase platforms, making two-wheelers more accessible to a wider demographic. Buyers can now explore, compare, and purchase vehicles online with minimal paperwork, and financing companies have introduced customized loan products for first-time vehicle owners, encouraging entry into the two-wheeler segment. This shift in consumer behavior and financing support has broadened the market base significantly.

However, the sector also faces a few persistent challenges. The lack of standardized safety regulations specific to two-wheelers has led to inconsistent quality and safety levels across different models, which can hinder consumer confidence. Poor road conditions and infrastructure limitations in urban and rural areas contribute to higher maintenance costs and reduce the lifespan of two-wheelers, deterring long-term investment in premium models. There is also limited availability of skilled service technicians and authorized spare parts vendors, which impacts aftersales service quality. Rising insurance premiums and instances of motorcycle theft also pose risks that dissuade potential buyers. Despite these hurdles, the market is expected to see sustained momentum, driven by the shift toward cost-effective mobility and the continuous evolution of last-mile transport and micro-logistics solutions.

Market Drivers

Increasing Urbanization and Traffic Congestion

Urban areas in South Africa are growing rapidly, leading to higher traffic congestion, especially in metropolitan cities like Johannesburg and Cape Town. Two-wheelers offer a practical solution to navigate through traffic, making them highly appealing to urban commuters. With limited parking space and increasing traffic jams, owning a two-wheeler is often seen as a faster, more affordable alternative. Moreover, as urbanization continues, the demand for affordable and efficient transportation options will only intensify. This urban shift is leading to a significant rise in the adoption of two-wheelers. As the market grows, two-wheeler manufacturers are also focusing on enhancing vehicle efficiency to meet urban mobility needs. Additionally, expanding infrastructure like dedicated bike lanes will further fuel the growth of two-wheelers in urban areas. These infrastructural improvements will make two-wheelers a more attractive and safer mode of transport, leading to sustained demand. For instance, in 2023, South Africa's public-sector capital expenditure reached USD 12.51 billion, marking a 10.9% increase from USD 11.28 billion in 2022. This growth signifies the second consecutive annual rise following a five-year decline, driven by post-pandemic recovery efforts and the acceleration of infrastructure projects. Public corporations led the spending with R87 billion (approximately $4.6 billion), accounting for 37.5% of the total. Municipalities followed with R62 billion ($3.3 billion), provincial governments contributed R35 billion ($1.9 billion), extra-budgetary accounts and funds (EBAs) invested R22 billion ($1.2 billion), national government departments spent R17 billion ($0.9 billion), and higher education institutions allocated R9.5 billion ($0.5 billion).

Rising Fuel Prices

The ongoing rise in fuel prices in South Africa has made conventional modes of transport, especially cars, increasingly costly to maintain and operate. In response, many consumers are turning to two-wheelers, which offer a more fuel-efficient alternative. Two-wheelers consume significantly less fuel than larger vehicles, making them an economically viable option for daily commuting. As fuel prices continue to fluctuate, the trend towards fuel-efficient two-wheelers will likely gain momentum. In addition, the growing interest in electric two-wheelers is further boosting the shift towards more sustainable, lower-cost transport options. The cost-effectiveness of two-wheelers is particularly important in an economy with fluctuating fuel prices, which impacts the average consumer's budget. More consumers will likely adopt two-wheelers to mitigate the financial burden of fuel consumption.

Government Initiatives and Support

The South African government has been actively working towards improving transportation infrastructure and offering incentives for more sustainable modes of travel. Programs that support the use of two-wheelers, such as incentives for electric vehicles (EVs), have been established. These initiatives aim to reduce carbon emissions, combat traffic congestion, and promote energy efficiency. Furthermore, government-backed safety campaigns and the development of better roads and parking facilities for two-wheelers are encouraging more people to consider two-wheelers as a practical mode of transport. This governmental push is expected to further fuel the market’s growth, creating a more favorable environment for the adoption of two-wheelers. With these initiatives, two-wheelers are becoming more integrated into the country’s sustainable transport vision, promoting long-term growth. The support for electric vehicles is particularly important, as it aligns with global trends toward reducing the environmental impact of transportation.

Technological Advancements in Two-Wheelers

Advances in two-wheeler technology, including improvements in fuel efficiency, engine power, and vehicle safety, are playing a significant role in attracting consumers to the market. The integration of smart technologies such as GPS navigation, Bluetooth connectivity, and ride-sharing apps enhances the user experience and makes two-wheelers more convenient. These advancements not only appeal to tech-savvy consumers but also contribute to a safer and more comfortable riding experience, which encourages new buyers to enter the market. As technology continues to evolve, these features will become more prevalent, driving further demand. The increased use of technology has led to the development of smart helmets and wearables that help improve rider safety. Manufacturers are also focusing on integrating electric mobility solutions and connectivity into their product lines, ensuring that two-wheelers cater to the demands of modern consumers.

Changing Consumer Preferences Towards Affordable Vehicles

South African consumers are becoming increasingly price-sensitive, especially due to economic pressures. Two-wheelers, being affordable compared to cars, offer an attractive option for consumers seeking budget-friendly transportation. The cost of maintaining a two-wheeler, including insurance, fuel, and repairs, is considerably lower than that of a car. With rising living costs and economic uncertainty, more individuals, especially younger buyers, are opting for two-wheelers as a primary mode of transport. This shift in consumer preferences towards more economical transportation is a key factor driving the growth of the two-wheeler market in South Africa. More consumers are realizing that two-wheelers can offer both financial and practical benefits, including lower overall maintenance and greater ease of movement in busy urban areas. The increasing availability of affordable financing options is also helping to drive the adoption of two-wheelers in the country.

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Key Market Challenges

Safety Concerns and High Accident Rates

Despite their affordability and convenience, two-wheelers are inherently more vulnerable to accidents and injuries than cars. South Africa’s road safety record remains a concern, with motorcyclists and cyclists often involved in traffic accidents. A lack of dedicated lanes for two-wheelers, coupled with reckless driving, increases the risks faced by riders. Safety remains a critical issue, and improving safety standards, enforcing traffic rules, and providing better rider training programs are necessary to address these challenges. As the market grows, ensuring better road safety will be pivotal in reducing accidents and increasing consumer confidence in two-wheelers. Moreover, stricter enforcement of traffic laws and the installation of safety infrastructure such as dedicated bike lanes will help mitigate these risks. The development of advanced safety features like ABS in two-wheelers could also reduce accident rates.

Inadequate Infrastructure and Limited Parking Space

While urbanization is driving demand for two-wheelers, the lack of adequate infrastructure, such as designated parking spaces, is a significant challenge. Many cities do not have the necessary facilities to accommodate the growing number of two-wheelers, leading to congestion and disorganized parking. Moreover, inadequate road maintenance and poorly designed urban spaces make it difficult for two-wheeler users to navigate safely. Without the right infrastructure to support this mode of transport, growth in the market may be hindered. Addressing these infrastructural gaps will be crucial for the market to fully capitalize on its potential. Creating more designated parking areas, better road maintenance, and even dedicated lanes for two-wheelers will improve the overall experience for users. Local governments must collaborate with manufacturers to improve infrastructure and make two-wheelers a more viable transport option.

Limited Consumer Awareness and Education

A lack of awareness and education regarding the benefits of two-wheelers, especially in terms of fuel efficiency, environmental impact, and cost savings, remains a barrier in South Africa. Many potential buyers still perceive two-wheelers as risky or less reliable. There is a need for extensive awareness campaigns to highlight the advantages of two-wheelers as a safe, affordable, and eco-friendly alternative to cars. Educating consumers about the maintenance, proper usage, and safety of two-wheelers will help address concerns and increase adoption rates. Additionally, educating the public about the growing availability of electric two-wheelers could further boost the market. Consumers must be made aware of the long-term savings associated with using two-wheelers, including lower fuel costs and maintenance expenses. Raising awareness about the environmental benefits will also encourage eco-conscious buyers to consider two-wheelers as a sustainable choice.

Regulatory Hurdles and Taxation Issues

Regulatory barriers and taxation policies present a challenge to the growth of the two-wheeler market in South Africa. High import duties and taxes on two-wheeler components increase the cost of production, making it difficult for manufacturers to offer competitive prices. Additionally, inconsistent regulatory policies can create confusion and delays in the market. Simplifying regulations and offering tax incentives for manufacturers and consumers could help mitigate these challenges and make two-wheelers more accessible. Streamlining the importation process and fostering local manufacturing would also create a more stable market environment. These measures could promote a more favorable market for both manufacturers and consumers, ultimately leading to increased adoption. The introduction of clear guidelines for electric two-wheelers could further boost growth in this segment.

Economic Instability and Inflation

Economic instability and inflation pose significant risks to the growth of the two-wheeler market in South Africa. Rising inflation rates and fluctuating exchange rates increase the cost of materials and manufacturing, leading to higher prices for consumers. This affects the purchasing power of potential buyers, especially those from lower-income households, who form a large part of the two-wheeler market. Additionally, economic uncertainty may cause consumers to delay or rethink purchasing decisions. In this environment, it becomes critical for manufacturers to offer affordable pricing and flexible financing options to maintain market growth. Despite these challenges, the two-wheeler market may still expand if companies can offer attractive financing plans and ensure competitive pricing. Furthermore, the demand for low-cost transportation will continue to drive the market, especially in times of economic stress.

Key Market Trends

Growing Popularity of Electric Two-Wheelers

The global push for cleaner energy sources is influencing South African consumers to consider electric two-wheelers as a viable alternative to gasoline-powered options. Electric two-wheelers are gaining popularity due to their eco-friendly nature, lower operating costs, and minimal maintenance requirements. With advancements in battery technology, electric two-wheelers are becoming more affordable and practical for everyday use. As the South African government continues to encourage the adoption of electric vehicles through incentives and infrastructure development, electric two-wheelers are expected to play a significant role in the future of the market. Moreover, the rise in environmental awareness is encouraging consumers to choose electric options to reduce their carbon footprint. The growing availability of charging stations and improved battery life will also contribute to the further growth of electric two-wheelers.

Expansion of Ride-Sharing and Mobility Solutions

With the rise of digital platforms and apps, ride-sharing services that incorporate two-wheelers are gaining traction in South Africa. These services provide consumers with an affordable and convenient alternative to traditional public transport. Companies offering two-wheeler ride-sharing solutions are making it easier for people to use motorcycles and scooters for short trips without the need to own a vehicle. This trend is not only attracting younger, tech-savvy consumers but is also contributing to the growth of the two-wheeler market. As urban mobility solutions continue to evolve, ride-sharing will play a significant role in shaping the future of transportation in South Africa. The rise of these platforms reflects a growing demand for on-demand, cost-effective transport solutions. These services also contribute to reducing the overall number of vehicles on the road, helping to alleviate congestion.

Integration of Smart Technology in Two-Wheelers

Smart technology is becoming a key differentiator in the two-wheeler market. Consumers are increasingly looking for motorcycles and scooters that come equipped with features like GPS navigation, smartphone integration, and advanced safety systems. These technologies enhance the rider’s experience by offering convenience, safety, and real-time data. Manufacturers are integrating connectivity solutions into their products to appeal to younger riders who value technology-driven features. As the market evolves, the integration of smart technology will continue to drive innovation and attract a wider customer base. Enhanced connectivity allows for better route planning, performance tracking, and predictive maintenance, which improves the overall ownership experience. With technological advancements, two-wheelers will become even more appealing to consumers who seek greater convenience and enhanced safety.

Rise in Customized and Modified Two-Wheelers

The trend of customizing and modifying two-wheelers to suit personal tastes and preferences is becoming more prominent in South Africa. Many riders are seeking unique designs, enhanced performance features, and improved aesthetics, leading to an increase in demand for customized motorcycles and scooters. This trend is particularly popular among younger consumers who are more inclined to express their individuality through customized products. As this culture of personalization grows, two-wheeler manufacturers are offering more options for customization, such as customizable paint jobs, performance parts, and accessories. The rise in modified two-wheelers is a direct reflection of shifting consumer attitudes towards self-expression and individuality. This trend is expected to continue as more consumers look to create a personalized riding experience that stands out.

Shift Towards More Sustainable Transportation Options

South African consumers are becoming more conscious of the environmental impact of their transportation choices. This trend is driving the adoption of more sustainable and eco-friendly transportation options, including two-wheelers. With the increasing environmental concerns surrounding traditional vehicles, consumers are turning towards two-wheelers, which produce fewer emissions and consume less energy. This growing demand for sustainability is also influencing the production of electric two-wheelers, which align with global environmental goals. The shift towards sustainable transportation is not only driven by environmental consciousness but also by the economic benefits of using two-wheelers, such as reduced fuel costs and maintenance expenses. Manufacturers are responding to this trend by offering more eco-friendly options, ensuring the future growth of the market.

Segmental Insights

Vehicle Type Insights

In 2024, motorcycles are expected to dominate the Africa two-wheeler market, driven by a growing preference for higher performance and versatility. Motorcycles, with their robust engine power and durability, cater to a wide range of consumers, from daily commuters to leisure riders. These vehicles offer greater speed and capacity compared to scooters and mopeds, making them ideal for both urban and rural settings. Motorcycles are particularly favored in regions with rougher terrains and longer distances, where their ability to navigate diverse road conditions and carry heavier loads gives them a distinct advantage over other types of two-wheelers.

The appeal of motorcycles extends beyond their functionality. They are perceived as more practical for long-distance travel, offering better stability, comfort, and reliability on highways and challenging roads. As the African continent experiences rapid urbanization, many consumers are opting for motorcycles to tackle traffic congestion efficiently, especially in densely populated cities. These vehicles provide an affordable and flexible transport solution for people seeking to avoid the high costs and delays associated with other forms of transportation.

Motorcycles also meet the growing demand for personal mobility in areas where public transportation infrastructure is underdeveloped. In many regions of Africa, motorcycles serve as both a personal mode of transport and a commercial asset. For instance, motorcycles are commonly used for deliveries and as ride-hailing vehicles, adding a layer of economic opportunity to their utility. As urbanization accelerates and the demand for efficient transport continues to rise, motorcycles are expected to maintain their dominant position in the market, appealing to both individual consumers and businesses. With improvements in fuel efficiency and affordability, motorcycles offer a practical solution for many Africans looking for cost-effective ways to move within cities and across rural areas.

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Region Insights

In 2024, Gauteng is projected to be the dominant region in the Africa two-wheeler market, driven by its strong economic foundation and high population density. As the economic heart of South Africa, Gauteng benefits from a high level of industrialization, urbanization, and a diverse population. This urbanized environment makes it an ideal market for two-wheelers, particularly motorcycles and scooters, as residents look for affordable, efficient transportation options to navigate the region’s bustling cities and heavy traffic.

Gauteng is home to South Africa’s largest cities, including Johannesburg and Pretoria, where congestion and rising transportation costs make two-wheelers an attractive option for commuters. The region’s extensive road networks and well-developed infrastructure further contribute to the demand for two-wheelers, as these vehicles are better suited for navigating through busy traffic. Motorcycles and scooters provide a faster, more economical means of travel, allowing users to avoid the delays and expenses associated with public transportation or private car ownership. This has made Gauteng a hotspot for two-wheeler adoption, with increasing numbers of individuals relying on them for both personal use and commercial purposes.

The commercial use of two-wheelers in Gauteng has also seen significant growth, as delivery services and ride-hailing businesses expand in response to the region’s growing e-commerce market. With Gauteng being a central hub for business activity, the demand for goods transportation and courier services has led to an uptick in the use of motorcycles for deliveries. Small businesses and entrepreneurs in Gauteng are increasingly turning to two-wheelers to meet the rising demand for fast and affordable logistics solutions, particularly in densely populated urban areas.

In addition to these factors, Gauteng’s relatively higher disposable income compared to other regions enables a larger portion of the population to invest in two-wheelers. The region’s strong middle class is likely to continue driving the growth of the two-wheeler market, with many consumers opting for motorcycles and scooters as cost-effective alternatives to cars. As the region’s urban landscape continues to evolve and its economic prospects remain strong, Gauteng is set to maintain its dominant position in the two-wheeler market in 2024.

Recent Developments

• In 2024, Japanese startup Dodai, led by Yuma Sasaki, is launching a battery-swapping service for electric motorcycles in Ethiopia, starting with 100 stations in Addis Ababa and expanding to 300. Backed by $7 million in funding, including a $4 million Series A round, Dodai's locally assembled bikes cost around $1,170 and run up to 150 km per charge. The initiative supports Ethiopia’s shift to sustainable transport following its fuel vehicle import ban. ​
• In 2025, Bolt has expanded its electric two-wheeler fleet in Kenya to 500 bikes through partnerships with M-KOPA, Roam, and Ampersand, aiming to reach 1,500 by 2025 and cut emissions.
• ​In 2024, Spiro, formerly MAuto, has expanded its electric motorbike and battery-swapping services across six African countries, including Kenya, Nigeria, and Uganda. With significant investments and partnerships.

Key Market Players

• Bajaj Auto Ltd.,
• TVS Motor Company Limited
• Yamaha Motor Co., Ltd
• Hero MotoCorp Ltd
• Honda Motor Co, Ltd
• Kwang Yang Motor Co., Ltd
• Suzuki Motor Corporation
• Sanyang Motor Co., Ltd
• Lifan Motors
• Luoyang Northern EK Chor Motorcycle Co., Ltd.

Report Scope:

In this report, the South Africa Two-Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         South Africa Two-Wheeler Market, By Vehicle Type:

o    Scooter/Moped

o    Motorcycles

·         South Africa Two-Wheeler Market, By Propulsion Type:

o    ICE

o    Electric

·         South Africa Two-Wheeler Market, By Region:

o    Gauteng

o    Kwazulu-Natal

o    Western Cape

o    Eastern Cape

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the South Africa Two-Wheeler Market.

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Company Information

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