All-Terrain Vehicles (ATV) in India growing at a CAGR of over 30%: The India Watch Study

India’s ATV market is on a growth trajectory. It was valued at USD 15.7 million in 2023 and is expected to reach USD 64.5 million by 2028, growing at a CAGR of 32.5%, as per a study by The India Watch of Market Research And Feasibility Study For Automotive Sector In India. This surge is driven by rising per capita income, an emerging adventure tourism industry, and the adaptability of ATVs for leisurely use as well as commercial purposes too.  Other key demand drivers include increased use in farm activities, infrastructure development and growing popularity of off-road activities. 

Meanwhile, the industry is still in its nascent stages and there are visible challenges. The industry is unorganized with limited footprint of organized players. There is no licensing facility available and ATVs can’t be driven in main roads. They are used across off-trails. 

Market growth drivers:

•    One of the key reasons is expanding middle class with rising disposable incomes. People with increased spending power can afford to choose more expensive recreational activities and better-quality goods. As economic growth in India has been steady over the last decade, the market for ATVs and UTVs are also expanding as per Market And Feasibility Study For Automobile Industry In India.

•    ATVs are versatile vehicles capable of being used for both recreational & utility purposes. They have powerful engines and sturdy suspension systems for stability and control over uneven surfaces. These machines provide excitement during an off-road ride while enabling farmers, ranchers or even industrial workers to make economic uses of them. As the Indian market matures more design innovation are expected in terms of convenience, safety, and energy efficiency. 

•    India’s varying geographical features coupled with growing interest in adventure tourism fuels demand for ATVs and UTVs. In many parts of India that have different topographies, ATV tours are becoming mainstream as tourists seek to take adventurous rides for added experience. The government’s drive towards tourism development has also contributed to this trend and there comes the need for Feasibility Study For ATV Manufacturing In India. 

•    ATVs are now invaluable assets in modern agriculture as they contribute significantly to improved productivity in addition to increased rural economy. They can be used for transportation, crop monitoring, livestock management and other purposes revolutionizing agricultural practices.

•    As India continues its infrastructural expansion, particularly through road building and electrifying rural areas, it opens new possibilities for the use of ATVs and UTVs. There is need for these machines during project supervision, maintenance and transport especially when the job sites are in remote areas where motorable roads are not available or reachable only at certain times of the year.

•    Armed forces, CRPF, BSF, and State Police Dept. buy ATVs frequently, as they are used for patrolling in difficult terrains such as snow, deserts, rocky surfaces, etc. Indian forest department also buys ATVs on a regular basis for patrolling purposes and that’s why there is a major need for Market And Feasibility Study For Automobile Industry In India. 

Technological advancements in the segment:

•    There are serious safety risks associated with ATVs which can lead to accidents as per Feasibility Study For ATV Manufacturing In India. These dangers can be alleviated by ADAS systems such as ABS, traction control, and hill descent control, especially for inexperienced riders. The worldwide ADAS market of off-road vehicle has been experiencing immense growth rates and is expected to reach at USD 1.8 billion by 2027. To attain wider acceptance in India, adapting existing automotive ADAS features to ATVs and offering affordable packages are critical preconditions. While fundamental protective mechanisms incorporate ABS, ESC, TCS and HDC advanced selections involve TPMS, RMS, BSD, FCW, LWD.

•    Electric ATVs are the future of the existing segment. Presently, electric ATVs form only a fraction of the Indian market, which is majorly dominated by petrol and diesel models, though their potential is staggering.

Competitive landscape of ATVs in India:

The Indian ATV market is a confluence of international as well as domestic players. The competitive landscape of ATV’s in India can be understood through Market Research And Feasibility Study For Automotive Sector In India. International brands like Polaris and Yamaha have a strong presence in the segment with various models out in the market. Powerland, a goa-based startup has also made a strong presence in the market offering Electric ATVs for agriculture, defence and adventure sports. Although, more than 50% of the market is fragmented and consists of local players. These entities import the spare parts of the vehicle and assemble in India to sell under their flagship. Most of these local players operate from Gujarat, which is a hub for ATVs manufacturing in India. Unorganised segment in the sector generally has an edge over international brands due to their affordable price range. 

Whereas international brands like polaris cater with their advanced features and safety-oriented vehicles. Also, Polaris is one of the pioneers in developing off-road tracks. In 2020, the brand has developed around 46 tracks and aims to develop around ~ 200 tracks in future. Feasibility Study For Adventure Tourism Business in these tracks one can rent out ATV by Polaris and use them for adventure and fun. In conclusion, unorganized players dominate the Indian ATV market with lower prices, organized players offer superior technology, safety, and infrastructure, catering to a premium segment and B2B entities in the domain.

Challenges that can block the widespread: 

The Indian ATV market faces various obstacles that can hamper its growth in near future that are accessed through Market Study For Adventure Tourism In India. 

-     The initial cost of ATVs, particularly those imported, is often too much for the Indian consumer to handle. This limits the market to a niche group that has high disposable income. For the wider adaption affordable price range will be crucial, which can be attained by ceasing the dependency on imports of goods and develop indigenous manufacturing capacity. 

-    The vehicle has a limited off-road access. India does not have a well-established network for dedicated off-road trails. Most of the public and private lands do not allow ATVs which limit recreational opportunities, that raises the need for Market Study For Adventure Tourism In India. 

-    ATVs face various safety constraints across the globe. Accidents involving ATVs are relatively common and pose safety concerns. This has resulted in tighter regulations and safety standards that can raise costs and add complexity for manufacturers.

-    Awareness is another factor that might choke its popularity. Many people who might be interested in buying ATVs don’t know about their usefulness in many situations. This shows there is need to increase awareness among communities on how to leverage the vehicle’s potential in agrobusiness, recreation and other sectors.

-    Poor road conditions and inadequate charging infrastructure, especially in rural areas, hinder adoption of electric ATVs raises the need for Feasibility Study For Off-Trail Biking Business In India. 

-    The growth rate of environmentally sensitive ecosystems is a major concern with respect to ATV activity. Enhanced emission norms may result in higher costs as well as fewer options within product range.

-    The market is highly unorganized with just few large-scale organized players like polaris and yamaha.

-    Over 90% of the ATVs are run by gasoline and petrol and they result into high volume of CO2 emissions.

Feasibility Study Analysis of New ATV Manufacturing Business 

If you and new or existing business owner and planning to set-up a manufacturing plant for ATVs, The India Watch can assist you with top-quality feasibility study. A well-researched Feasibility Study For Adventure Tourism Business can help you in making informed business decisions and know more about the industry. 

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