How Big is India Two-Wheeler Loan Market Industry?

The India two-wheeler loan market size reached USD 8.30 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 14.55 Billion by 2033, exhibiting a growth rate (CAGR) of 6.43% during 2025-2033.

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India Two-Wheeler Loan Market Trends:

The India two-wheeler loan market is a real witness to the huge changes that have occurred during the last years. The main reasons for the change are the following: the influence of consumers, the economic situation, and the development of financial services. Another important factor is the continuously increasing need for personal urban mobility. So, two-wheelers have become the most popular mode of personal transport. It should be noted that these updates are not limited to metropolitan regions only but are gradually spreading to the tier II and tier III cities as well. Lenders, particularly lending institutions and Non-Banking Financial Companies (NBFCs), have been quick to come up with innovative products to satisfy the diversified needs of the market.

The ubiquitous presence of digital lending platforms also has a great role in the radicalizing of the loan application and approval process which in turn is the main driver of the rural and semi-urban people getting access to the loans all the more easily. Apart from getting reasonable interest rates, being requested to provide only a minimum amount of documents, and prompt disbursals, individuals have become attracted to the facilities offered by two-wheeler loans, so to speak, thus opting for the credit options even the very first time. This market is even witnessing the growing preference of the people to the electric two-wheeler, which is in line with the government's policy of promoting sustainable mobility.

India Two-Wheeler Loan Market Scope and Growth Analysis:

One of the significant changes in India's two-wheeler credit market is the heightened focus on customer-friendly products and flexible methods of loaning. Lenders are rolling out tailor-made EMI plans, balloon payments, and discounts based on loyalty in the market, for they wish to increase the client portfolio. The usage of AI in credit scoring and without documentation has brought down the processing time drastically and at the same time, given higher approval rates, reaching out to a group that most often has variable and/or non-traditional income like the self-employed and gig workers.

Also, the establishment of alliances among automakers, dealers, and financial providers resulted in the creation of uninterrupted financing opportunities, thus impacting the sales and loans markets positively. The fintech sector has achieved its market outreach beyond the usual landing sites thereby bringing in the younger more technologically advanced consumers in the form of peer-to-peer lending and subscription-based business models that are friendly and flexible to their needs. The two-wheeler loan market is predicted to be characterized by sustainable growth as the public's disposable income rises in anticipation of broader trends found in India's both automotive and financial sectors.

India Two-Wheeler Loan Market Segmentation:

The market report offers a comprehensive analysis of the segments, highlighting those with the India two-wheeler loan market share. It includes forecasts for the period 2025-2033 and historical data from 2019-2024 for the following segments.

Type Insights:

• New Two-Wheeler
• Used Two-Wheeler

Provider Type Insights:

• Banks
• Non-Banking Financial Companies
• Original Equipment Manufacturer
• Others

Percentage Amount Sanctioned Insights:

• Less Than 50%
• More Than 50%

Tenure Insights:

• Less Than 3 Years
• 3 Years
• More Than 3 Years

Regional Insights:

• North India
• South India
• East India
• West India