Motorcycle Loan Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type, By Provider (Banks, NBFCs, OEM, Others ), By Tenure, By Percentage of Amount Sanctioned, By Region & Competition, 2021-2031F

Description

The Global Motorcycle Loan Market is projected to expand from USD 149.24 Billion in 2025 to USD 255.57 Billion by 2031, reflecting a CAGR of 9.38%. These loans are financial mechanisms provided by banking and non-banking entities, allowing businesses and individuals to acquire two-wheeled vehicles through borrowed capital that is repaid with interest over a set period. Key factors driving this growth include increasing vehicle ownership costs, which compel middle-income consumers to seek credit, and rapid urbanization, which spurs the need for affordable personal transportation. Furthermore, the flourishing gig economy has established a structural requirement for commercial two-wheelers within the logistics industry, boosting demand for financing beyond temporary market fluctuations.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 149.24 Billion
Market Size 2031	USD 255.57 Billion
CAGR 2026-2031	9.38%
Fastest Growing Segment	New Motorcycle
Largest Market	Asia Pacific

Despite these positive indicators, the market encounters significant obstacles due to high interest rates and stricter credit appraisal standards, which can suppress borrowing enthusiasm among price-sensitive groups. This financing activity is closely tied to vehicle transaction volumes in major regions. For instance, the Society of Indian Automobile Manufacturers reported that domestic two-wheeler sales reached 1.94 million units in November 2025 alone, marking a 21.2% year-over-year increase; this surge directly reinforces the addressable market base for lending institutions.

Market Driver

The lending landscape is being fundamentally altered by the rise of electric motorcycle adoption and green financing initiatives, as financial institutions develop specialized products to reduce entry barriers for battery-operated vehicles. To mitigate the higher initial costs of electric mobility and align with global sustainability objectives, lenders are increasingly partnering with manufacturers to provide lower interest rates and subvention schemes. This trend is highlighted by fintech companies aggressively building portfolios in this sector; for example, a December 2024 report by Devdiscourse titled 'RevFin Gears Up for Massive Expansion in Electric Vehicle Financing' noted that the company has funded approximately 75,000 electric vehicles to date, with 25,000 units financed in 2024 alone, underscoring the rapid credit uptake in green mobility.

Concurrently, the integration of fintech and digital lending platforms has optimized loan origination, enabling paperless approvals and alternative credit scoring to assist underserved borrowers. These digital-first strategies are essential for satisfying high-volume demand in emerging markets where smartphone usage is high despite low traditional banking penetration. This operational evolution is channeling substantial capital into two-wheeler assets. As reported by Entrackr in February 2024 within the article 'Two-wheeler EV finance platform OTO raises $10 Mn', OTO Capital stated that lending partners have committed over INR 800 crore for upcoming disbursements. Additionally, Bajaj Finserv's 'Q2 FY25 Investor Presentation' in October 2024 revealed that their two- and three-wheeler finance assets under management increased by 15% year-over-year to INR 18,960 crore, reflecting the segment's overall health.

Market Challenge

Elevated interest rates combined with stricter credit appraisal standards act as a severe bottleneck for the market by diminishing consumer purchasing power and restricting access. As borrowing costs rise, the resulting increase in monthly installments renders financing less appealing for price-sensitive and middle-income demographics, who constitute the primary customer base. Simultaneously, rigorous credit screening procedures disqualify marginal borrowers who might have secured approval under more lenient criteria, effectively shrinking the pool of eligible applicants and reducing overall lending volumes.

This tightening of financial conditions directly impedes the movement of vehicle inventory from dealerships to end users, causing retail performance to trail behind wholesale distribution. Evidence of this friction is visible in recent industry data showing a slowdown in consumer purchasing. According to the Federation of Automobile Dealers Associations, two-wheeler retail sales in November 2025 fell by 3% year-on-year to roughly 2.55 million units. This contraction at the retail level emphasizes that, despite strong manufacturing output, the challenges regarding financing affordability and availability are actively limiting growth at the point of sale.

Market Trends

The emergence of specialized lending for pre-owned motorcycles is transforming the sector, as rising new vehicle costs push price-sensitive consumers toward the secondary market. Lenders are professionalizing this historically unorganized segment by partnering with re-commerce platforms to provide certified vehicles accompanied by transparent financing solutions. This structural shift resolves liquidity issues in the used vehicle market and fosters trust among lower-income borrowers who previously depended on expensive informal credit. As reported by Indian Startup Times in August 2025 in the 'Vutto Raises $7M Series A' article, the used two-wheeler marketplace Vutto secured funding to expand its integrated financing model after facilitating credit-linked sales for 1,500 vehicles in its inaugural year.

Simultaneously, the growth of embedded financing at the point of sale is redefining distribution strategies, with financial institutions integrating credit systems directly into dealership networks to immediately capture demand. By establishing a physical presence within retail outlets, lenders can provide real-time approvals and seamless onboarding, which significantly boosts conversion rates compared to traditional branch-based models. This proximity to the customer is essential for maintaining volume growth in competitive environments. According to Bajaj Finance's 'Q3 FY25 Investor Presentation' in January 2025, the company added approximately 8,900 new distribution points during the quarter, contributing to a 22% year-over-year increase in new loans booked.

Key Market Players

Bank of American Corporation
Mitsubishi HC Capital UK PLC
GM Financial Inc.
JPMorgan Chase & Co.
Toyota Financial Services
Ally Financial Inc.
Daimler Financial Services
Capital One Financial Corporation
Ford Motor Credit Company
General Motors Financial Company, Inc

Report Scope

In this report, the Global Motorcycle Loan Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Motorcycle Loan Market, By Type

New Motorcycle
Used Motorcycle

Motorcycle Loan Market, By Provider

Banks
NBFCs
OEM
Others (Fintech Companies, etc.)

Motorcycle Loan Market, By Tenure

Less than 3 Years
3 & More than 3 Years

Motorcycle Loan Market, By Percentage of Amount Sanctioned

Less than 50%
More than 50%

Motorcycle Loan Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Motorcycle Loan Market.

Available Customizations:

Global Motorcycle Loan Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Motorcycle Loan Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Type (New Motorcycle, Used Motorcycle)
- 5.2.2. By Provider (Banks, NBFCs, OEM, Others (Fintech Companies, etc.))
- 5.2.3. By Tenure (Less than 3 Years, 3 & More than 3 Years)
- 5.2.4. By Percentage of Amount Sanctioned (Less than 50%, More than 50%)
- 5.2.5. By Region
- 5.2.6. By Company (2025)
5.3. Market Map

6. North America Motorcycle Loan Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Type
- 6.2.2. By Provider
- 6.2.3. By Tenure
- 6.2.4. By Percentage of Amount Sanctioned
- 6.2.5. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Motorcycle Loan Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Type
    - 6.3.1.2.2. By Provider
    - 6.3.1.2.3. By Tenure
    - 6.3.1.2.4. By Percentage of Amount Sanctioned
- 6.3.2. Canada Motorcycle Loan Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Type
    - 6.3.2.2.2. By Provider
    - 6.3.2.2.3. By Tenure
    - 6.3.2.2.4. By Percentage of Amount Sanctioned
- 6.3.3. Mexico Motorcycle Loan Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Type
    - 6.3.3.2.2. By Provider
    - 6.3.3.2.3. By Tenure
    - 6.3.3.2.4. By Percentage of Amount Sanctioned

7. Europe Motorcycle Loan Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Type
- 7.2.2. By Provider
- 7.2.3. By Tenure
- 7.2.4. By Percentage of Amount Sanctioned
- 7.2.5. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Motorcycle Loan Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Type
    - 7.3.1.2.2. By Provider
    - 7.3.1.2.3. By Tenure
    - 7.3.1.2.4. By Percentage of Amount Sanctioned
- 7.3.2. France Motorcycle Loan Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Type
    - 7.3.2.2.2. By Provider
    - 7.3.2.2.3. By Tenure
    - 7.3.2.2.4. By Percentage of Amount Sanctioned
- 7.3.3. United Kingdom Motorcycle Loan Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Type
    - 7.3.3.2.2. By Provider
    - 7.3.3.2.3. By Tenure
    - 7.3.3.2.4. By Percentage of Amount Sanctioned
- 7.3.4. Italy Motorcycle Loan Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Type
    - 7.3.4.2.2. By Provider
    - 7.3.4.2.3. By Tenure
    - 7.3.4.2.4. By Percentage of Amount Sanctioned
- 7.3.5. Spain Motorcycle Loan Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Type
    - 7.3.5.2.2. By Provider
    - 7.3.5.2.3. By Tenure
    - 7.3.5.2.4. By Percentage of Amount Sanctioned

8. Asia Pacific Motorcycle Loan Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Type
- 8.2.2. By Provider
- 8.2.3. By Tenure
- 8.2.4. By Percentage of Amount Sanctioned
- 8.2.5. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Motorcycle Loan Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Type
    - 8.3.1.2.2. By Provider
    - 8.3.1.2.3. By Tenure
    - 8.3.1.2.4. By Percentage of Amount Sanctioned
- 8.3.2. India Motorcycle Loan Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Type
    - 8.3.2.2.2. By Provider
    - 8.3.2.2.3. By Tenure
    - 8.3.2.2.4. By Percentage of Amount Sanctioned
- 8.3.3. Japan Motorcycle Loan Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Type
    - 8.3.3.2.2. By Provider
    - 8.3.3.2.3. By Tenure
    - 8.3.3.2.4. By Percentage of Amount Sanctioned
- 8.3.4. South Korea Motorcycle Loan Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Type
    - 8.3.4.2.2. By Provider
    - 8.3.4.2.3. By Tenure
    - 8.3.4.2.4. By Percentage of Amount Sanctioned
- 8.3.5. Australia Motorcycle Loan Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Type
    - 8.3.5.2.2. By Provider
    - 8.3.5.2.3. By Tenure
    - 8.3.5.2.4. By Percentage of Amount Sanctioned

9. Middle East & Africa Motorcycle Loan Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Type
- 9.2.2. By Provider
- 9.2.3. By Tenure
- 9.2.4. By Percentage of Amount Sanctioned
- 9.2.5. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Motorcycle Loan Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Type
    - 9.3.1.2.2. By Provider
    - 9.3.1.2.3. By Tenure
    - 9.3.1.2.4. By Percentage of Amount Sanctioned
- 9.3.2. UAE Motorcycle Loan Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Type
    - 9.3.2.2.2. By Provider
    - 9.3.2.2.3. By Tenure
    - 9.3.2.2.4. By Percentage of Amount Sanctioned
- 9.3.3. South Africa Motorcycle Loan Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Type
    - 9.3.3.2.2. By Provider
    - 9.3.3.2.3. By Tenure
    - 9.3.3.2.4. By Percentage of Amount Sanctioned

10. South America Motorcycle Loan Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Type
- 10.2.2. By Provider
- 10.2.3. By Tenure
- 10.2.4. By Percentage of Amount Sanctioned
- 10.2.5. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Motorcycle Loan Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Type
    - 10.3.1.2.2. By Provider
    - 10.3.1.2.3. By Tenure
    - 10.3.1.2.4. By Percentage of Amount Sanctioned
- 10.3.2. Colombia Motorcycle Loan Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Type
    - 10.3.2.2.2. By Provider
    - 10.3.2.2.3. By Tenure
    - 10.3.2.2.4. By Percentage of Amount Sanctioned
- 10.3.3. Argentina Motorcycle Loan Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Type
    - 10.3.3.2.2. By Provider
    - 10.3.3.2.3. By Tenure
    - 10.3.3.2.4. By Percentage of Amount Sanctioned

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Motorcycle Loan Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Bank of American Corporation
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. Mitsubishi HC Capital UK PLC
15.3. GM Financial Inc.
15.4. JPMorgan Chase & Co.
15.5. Toyota Financial Services
15.6. Ally Financial Inc.
15.7. Daimler Financial Services
15.8. Capital One Financial Corporation
15.9. Ford Motor Credit Company
15.10. General Motors Financial Company, Inc