In May 2017, the Society of Indian Automobile Manufacturers (SIAM) announced that India had become the largest two-wheeler market in the world surpassing China. A total of 17.6 million two-wheelers were sold in India in 2016 while 16.8 million vehicles were sold in China during the same period. Experts opined that in the long run, the Indian two-wheeler industry would grow further due to various reasons including growth in the middle class, favorable demographics, rise in disposable incomes, and congested roads. India was also a growing hub for two-wheeler exports. Therefore, market analysts stated that it was the right time to invest in the two-wheeler industry. However, in the short-term, the industry was expected to face various challenges such as having to invest in reducing the vehicles’ emission levels and making vehicles BS-VI ready by 2020. Increased fuel prices and frequent changes in government policy were other major concerns of the industry. ..

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