India Two-Wheeler Engine Kit Market is anticipated to reach at USD 6.32 billion in FY2031 at a CAGR of 5.04% for the forecast period between FY2024 and FY2031 and was valued at USD 4.48 billion in FY2023. In India two wheelers are considered as most affordable, cost effective and economic way of transportation. This is reflected in the yearly sales trend as trade of two wheelers is on the higher side as compared to other types of vehicles in India. Additionally, companies are investing in automobile industry and setting manufacturing hub for automotive engine, components and kits that is parallelly driving the India Two-Wheeler Engine Kit Market.
Automobile manufacturers are creating new models with a focus on newer internal combustion engine models with enhanced fuel efficiency which reduces the emission of harmful pollutants into the air. For instance, to improve fuel efficiency, companies are investing in “direct fuel injection” technology in which the direct injection systems spray a fine mist of fuel directly into the cylinder, helping keep the engine’s temperature down and increasing fuel efficiency.
Despite a double-digit growth rate, the two-wheeler sales remain low in comparison to what it was pre covid, mainly due to approximately 50% price hike in the entry level segment. As per Society of Indian Automobile Manufacturers, total number of two-wheelers sold in India in FY2023 was recorded at 15.8 million as compared to 13.5 million in FY2022. The export of two wheelers decreased to 3.6 million in FY2023 from 4.4 million in FY2022.
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Rapid Urbanization and Increase in Traffic Congestion
During the projected period, the demand for two-wheeler engine kits is anticipated to be influenced by a number of factors, including rapid urbanisation and city traffic congestion. This is a major reason for the need of repair and maintenance of the two-wheeler engine and the requirement of engine kits. As per the Federation of Automobile Dealers Associations (FADA) data, more than 100 thousand two wheelers were sold in September 2022 which is a 9% increase in total volume as compared to the units sold last year during the same period.
Innovative Products Boosting Market Growth
Companies are engaging in value chain of the engine components adopting lightweight materials to manufacture camshafts, valve-train components, engine kit. The reduced weight of engine decreases the power requirements for two-wheeler vehicle operation, thereby saving fuel. Furthermore, emergence of 3D printing technology has improved the designing of engine components specially engine kit, which in turn is estimated to propel market expansion during the forecast period.
Impact of COVID-19 on India Two-Wheeler Engine Kit Market
The COVID-19 caused a production standstill that hampered the two-wheeler engine kit market in India. The two-wheeler engine kit sector has been set by a mix of supply and demand concerns because of the lockdown in nation. Due to a limited access of port infrastructure and restriction on allowed number of workers, many two-wheeler engine kit manufacturing companies were unable to finish their export shipments.
As the pandemic seems to have subsided, Indian economy can be seen in the recovery phase as there is a significant growth in supply & value chain network, upward trend in the demand curve and import & trade in automobile and specifically service industry where two wheelers are heavily used.
Report Scope
“India Two-Wheeler Engine Kit Market Overview, FY2017-FY2031F,” is a comprehensive report by Markets and Data, providing in-depth analysis and assessment of the market in India, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, COVID-19 impact, opportunities and forecast between FY2024 and FY2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.