Shangliao Sun
Research expert covering India
Like other developing countries, India could be characterized by its rising population, mounting urbanization, a burgeoning middle class and increase in motorization. As the population grew in Indian cities, they spread outwards. Commutes to work and vice versa became longer, thereby increasing the reliance on motorized transport. Low-density decentralization created problems for public transport efficiency. Consequently, public transport across the country became more expensive and less feasible, resulting in rapid growth in the automotive population.
Overview and history
In financial year 2023, the automobile industry in India was dominated by two wheelers. The country was also the largest producer of two-wheelers across the globe. Two-wheeler sales had been on the incline for many years, owing to the increase in traffic congestions and narrow, difficult to navigate Indian roads. Between 2020 and 2022, the decline in the sales was mostly contributed by the impact of the coronavirus pandemic. Until 1958, Enfield and Automobile Products of India were the only producers of two-wheelers in the country. Until the mid-80s, the Indian two-wheeler industry had only three motorcycle manufacturers. Consequently, the market opened to international manufacturers, and the industry faced fierce competition. The gearless scooter was introduced to the citizens by Kinetic, which gained immense popularity immediately, due to its ease of handling and absence of gear switching. The Kyoto agreement changed government policies pertaining to pollution norms resulting in the demise of two-stroke two-wheelers production.Sustainable future
The latest trend in the two-wheeler industry is the introduction of electric vehicles. Combined with city congestions and environmental concerns, electric two-wheelers were estimated to change the face of the industry. In 2023, close to 410 thousand electric three-wheelers were sold in the country. Since their legalization in 2015, the number of e-rickshaws on the road has been rising fast as they are generally priced less than their conventional counterparts. Consumers also seemed satisfied with the introduction, seeing as the change had not affected the price of commute. As the country overtook China to become the most populous. The amount of traffic on narrow, partially developed roads could likely be a constant issue. While the increasing number of vehicles has indeed been an indicator of a burgeoning middle class, but the issue of increasing road congestion will require some organized planning and attention from the government, especially when it comes to sustainability.
