Two-Wheelers Market Forecasts to 2032 – Global Analysis By Vehicle Type (Motorcycles, Scooters and Mopeds), Engine Capacity, Technology, Price Range, End User and By Geography
Description
According to Stratistics MRC, the Global Two-Wheelers Market is accounted for $4042.81 billion in 2025 and is expected to reach $6987.25 billion by 2032 growing at a CAGR of 8.13% during the forecast period. Two-wheelers, including motorcycles, scooters, and mopeds, play a crucial role in the worldwide automotive landscape due to their low cost, fuel efficiency, and convenient navigation through traffic-dense areas. In developing nations, they act as primary transport, whereas in advanced economies, they cater to commuters and recreational users. The sector is evolving with innovations like electric two-wheelers and smart features, aiming to reduce environmental impact and enhance urban mobility. Increasing demand for economical transport, along with supportive government policies for electric vehicles, is driving industry growth. Moreover, the expanding young population and accelerating urbanization are expected to continue propelling the global two-wheeler market forward.
According to data from the Ministry of Road Transport and Highways (MoRTH), two-wheelers account for over 70% of registered motor vehicles in India, highlighting their dominance in the broader automobile market.
Market Dynamics:
Driver:
Affordability and fuel efficiency
The two-wheeler market is strongly influenced by affordability and fuel economy. Compared to automobiles, two-wheelers are a budget-friendly transportation choice, appealing particularly to consumers in emerging economies. Efficient fuel usage minimizes operational costs, making them ideal for price-conscious buyers. With fluctuating fuel prices and economic challenges, two-wheelers present an attractive, cost-saving commuting alternative. Their compact design and smaller engines contribute to excellent mileage and reduced maintenance requirements. These combined advantages boost market demand as consumers increasingly value economical and efficient transportation options. Therefore, affordability and fuel efficiency remain key factors driving the expansion of the two-wheeler industry worldwide.
Restraint:
Environmental regulations and emission norms
The two-wheeler market faces limitations due to strict environmental rules and emission standards. Authorities across the globe are imposing rigorous norms to curb pollution, affecting traditional petrol and diesel vehicles. Meeting these requirements necessitates significant investment in cleaner engines or a transition to electric models. Failure to comply may lead to fines, product recalls, or restricted sales, hindering market growth. Growing consumer awareness about environmental sustainability also reduces demand for fossil-fuel-powered two-wheelers. The increasing emphasis on eco-friendly and zero-emission transportation discourages the use of conventional models. Consequently, regulatory pressures and environmental considerations act as major restraints, pushing manufacturers and consumers toward greener, sustainable two-wheeler alternatives worldwide.
Opportunity:
Rising urbanization and demand for personal mobility
The surge in urbanization and growing city populations provide notable opportunities for the two-wheeler market. Increasing traffic jams, scarce parking, and the need for practical commuting options drive consumers toward compact two-wheelers. Affordable and time-efficient transportation solutions, such as motorcycles and scooters, are gaining popularity in urban regions. Additionally, younger demographics and working professionals often prefer personal vehicles over public transport for convenience and flexibility. The combination of urban growth, changing lifestyles, and the demand for efficient travel in densely populated areas supports expansion. Manufacturers can capitalize on these trends by creating products specifically designed for urban commuters, catering to their evolving transportation preferences and enhancing market penetration.
Threat:
Economic downturns and market slowdown
Economic slowdowns and global financial uncertainties pose considerable risks to the two-wheeler market. During recessions, reduced disposable income, rising unemployment, and declining consumer confidence can dampen two-wheeler sales. Price-conscious buyers may delay or cancel purchases, negatively affecting revenue and market expansion. Manufacturers may struggle with inventory management, production expenses, and cash flow amid economic turbulence. Additionally, global trade issues, currency fluctuations, and inflationary trends can intensify vulnerabilities. Extended economic instability may limit investments in R&D and technological upgrades. Therefore, economic downturns and financial market volatility remain critical threats, potentially slowing growth and reducing profitability for companies operating within the global two-wheeler industry.
Covid-19 Impact:
The COVID-19 outbreak considerably influenced the two-wheeler industry worldwide. Lockdowns, interruptions in supply chains, and temporary factory closures resulted in decreased production and postponed deliveries, negatively affecting sales figures. Economic uncertainties, reduced income, and employment challenges further dampened consumer demand, especially in emerging markets. On the other hand, the pandemic heightened the preference for personal mobility, as individuals looked for safer alternatives to public transport to reduce infection risks. Motorcycles and scooters emerged as convenient, contactless commuting solutions in cities. Although the immediate effects were adverse, COVID-19 also highlighted the importance of personal, cost-effective, and hygienic transportation, creating long-term growth prospects for the global two-wheeler market.
The motorcycles segment is expected to be the largest during the forecast period
The motorcycles segment is expected to account for the largest market share during the forecast period due to their adaptability, performance, and extensive use in both urban and rural areas. They serve as reliable options for commuting, recreational travel, and commercial purposes, appealing to a broad consumer base. High fuel efficiency, affordability, and low maintenance requirements make motorcycles a preferred choice. They cater to novice riders as well as performance-oriented enthusiasts, increasing their overall market attractiveness. Cultural familiarity and strong brand loyalty in multiple regions reinforce their leading position. In summary, motorcycles maintain the largest market share among two-wheelers by providing versatile, dependable, and economical transportation solutions for various user segments across the world.
The electric segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the electric segment is predicted to witness the highest growth rate, fueled by growing environmental awareness, supportive government policies, and rising fuel prices. Consumers are increasingly adopting electric motorcycles, scooters, and mopeds as eco-friendly and sustainable alternatives to traditional internal combustion vehicles. Innovations such as enhanced battery life, extended range, and faster charging options are improving their usability and attractiveness. Urban commuters and environmentally conscious individuals are driving demand for electric models. Additionally, government incentives promoting zero-emission vehicles and the development of charging infrastructure further support market expansion.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share, fueled by dense populations, rapid urbanization, and the growing need for cost-effective personal transport. Major markets like India, China, and Indonesia drive demand due to rising incomes, extensive use of motorcycles and scooters, and supportive government initiatives encouraging two-wheeler adoption. In these regions, two-wheelers serve as essential vehicles for commuting, deliveries, and small business operations. The presence of leading manufacturers and a strong production and distribution network further reinforces the region’s market leadership. Overall, Asia-Pacific remains the dominant two-wheeler market, providing significant opportunities for both international and domestic companies seeking growth and expansion.
Region with highest CAGR:
Over the forecast period, the Europe region is anticipated to exhibit the highest CAGR, driven by rising interest in sustainable and urban transportation solutions. High fuel prices, congested cities, and environmental concerns motivate consumers to choose motorcycles, scooters, and electric two-wheelers for short trips. Countries like Germany, France, and Italy are seeing growing adoption of electric models due to government incentives, subsidies, and support for zero-emission mobility. Urbanization, evolving lifestyles, and the demand for compact, practical vehicles further stimulate market expansion. Advanced technological developments and the popularity of premium and connected two-wheelers also strengthen Europe’s market presence, making it a vital and expanding region within the global two-wheeler industry.
Key players in the market
Some of the key players in Two-Wheelers Market include Honda, Hero MotoCorp, Yamaha, Yadea, TVS Motor, Bajaj Auto, Suzuki, Royal Enfield, Italika, Zongshen, Mahindra Two Wheelers, Ola Electric, Ather Energy, Piaggio Vehicles and Eicher Motors.
Key Developments:
In November 2025, TVS Motors has entered into share purchase agreements to sell its stake in Roppen Transportation Services Private Limited (Rapido) for INR 287.94 crore. The sale involves two buyers: Accel India VIII Limited purchasing 11,997 Series D CCPS for INR 143.96 crore, and MIH Investments One B.V. acquiring 10 equity shares and 11,988 Series D CCPS for INR 143.98 crore. The transaction is subject to regulatory approvals and exceeds the materiality threshold under SEBI regulations.
In July 2025, Ather Energy and DPIIT have inked a MoU to Boost India’s EV and Deep-Tech Startup Ecosystem. Under the agreement, DPIIT and Ather Energy will offer strategic mentorship to deep-tech startups, helping them overcome core technology challenges and scale effectively. The partnership, formalised under the government-led Build in Bharat initiative, is spearheaded by the Startup Policy Forum (SPF), a network of over 50 innovation-driven startups.
In March 2025, Honda has struck a significant deal with its long-time rival, Toyota, to secure a steady supply of hybrid batteries, a move that underscores the escalating impact of U.S. trade policies. As reported by Japanese daily Nikkei, the partnership aims to mitigate the risks posed by burgeoning tariffs on imported components originating from China and Japan.
Vehicle Types Covered:
• Motorcycles
• Scooters
• Mopeds
Engine Capacities Covered:
• <100cc
• 101-125cc
• 126-250cc
• 251-500cc
• >500cc
Technologies Covered:
• Internal Combustion Engine (ICE)
• Electric
Price Ranges Covered:
• Economy
• Mid-range
• Premium
End Users Covered:
• Personal Use
• Commercial Use
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
According to data from the Ministry of Road Transport and Highways (MoRTH), two-wheelers account for over 70% of registered motor vehicles in India, highlighting their dominance in the broader automobile market.
Market Dynamics:
Driver:
Affordability and fuel efficiency
The two-wheeler market is strongly influenced by affordability and fuel economy. Compared to automobiles, two-wheelers are a budget-friendly transportation choice, appealing particularly to consumers in emerging economies. Efficient fuel usage minimizes operational costs, making them ideal for price-conscious buyers. With fluctuating fuel prices and economic challenges, two-wheelers present an attractive, cost-saving commuting alternative. Their compact design and smaller engines contribute to excellent mileage and reduced maintenance requirements. These combined advantages boost market demand as consumers increasingly value economical and efficient transportation options. Therefore, affordability and fuel efficiency remain key factors driving the expansion of the two-wheeler industry worldwide.
Restraint:
Environmental regulations and emission norms
The two-wheeler market faces limitations due to strict environmental rules and emission standards. Authorities across the globe are imposing rigorous norms to curb pollution, affecting traditional petrol and diesel vehicles. Meeting these requirements necessitates significant investment in cleaner engines or a transition to electric models. Failure to comply may lead to fines, product recalls, or restricted sales, hindering market growth. Growing consumer awareness about environmental sustainability also reduces demand for fossil-fuel-powered two-wheelers. The increasing emphasis on eco-friendly and zero-emission transportation discourages the use of conventional models. Consequently, regulatory pressures and environmental considerations act as major restraints, pushing manufacturers and consumers toward greener, sustainable two-wheeler alternatives worldwide.
Opportunity:
Rising urbanization and demand for personal mobility
The surge in urbanization and growing city populations provide notable opportunities for the two-wheeler market. Increasing traffic jams, scarce parking, and the need for practical commuting options drive consumers toward compact two-wheelers. Affordable and time-efficient transportation solutions, such as motorcycles and scooters, are gaining popularity in urban regions. Additionally, younger demographics and working professionals often prefer personal vehicles over public transport for convenience and flexibility. The combination of urban growth, changing lifestyles, and the demand for efficient travel in densely populated areas supports expansion. Manufacturers can capitalize on these trends by creating products specifically designed for urban commuters, catering to their evolving transportation preferences and enhancing market penetration.
Threat:
Economic downturns and market slowdown
Economic slowdowns and global financial uncertainties pose considerable risks to the two-wheeler market. During recessions, reduced disposable income, rising unemployment, and declining consumer confidence can dampen two-wheeler sales. Price-conscious buyers may delay or cancel purchases, negatively affecting revenue and market expansion. Manufacturers may struggle with inventory management, production expenses, and cash flow amid economic turbulence. Additionally, global trade issues, currency fluctuations, and inflationary trends can intensify vulnerabilities. Extended economic instability may limit investments in R&D and technological upgrades. Therefore, economic downturns and financial market volatility remain critical threats, potentially slowing growth and reducing profitability for companies operating within the global two-wheeler industry.
Covid-19 Impact:
The COVID-19 outbreak considerably influenced the two-wheeler industry worldwide. Lockdowns, interruptions in supply chains, and temporary factory closures resulted in decreased production and postponed deliveries, negatively affecting sales figures. Economic uncertainties, reduced income, and employment challenges further dampened consumer demand, especially in emerging markets. On the other hand, the pandemic heightened the preference for personal mobility, as individuals looked for safer alternatives to public transport to reduce infection risks. Motorcycles and scooters emerged as convenient, contactless commuting solutions in cities. Although the immediate effects were adverse, COVID-19 also highlighted the importance of personal, cost-effective, and hygienic transportation, creating long-term growth prospects for the global two-wheeler market.
The motorcycles segment is expected to be the largest during the forecast period
The motorcycles segment is expected to account for the largest market share during the forecast period due to their adaptability, performance, and extensive use in both urban and rural areas. They serve as reliable options for commuting, recreational travel, and commercial purposes, appealing to a broad consumer base. High fuel efficiency, affordability, and low maintenance requirements make motorcycles a preferred choice. They cater to novice riders as well as performance-oriented enthusiasts, increasing their overall market attractiveness. Cultural familiarity and strong brand loyalty in multiple regions reinforce their leading position. In summary, motorcycles maintain the largest market share among two-wheelers by providing versatile, dependable, and economical transportation solutions for various user segments across the world.
The electric segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the electric segment is predicted to witness the highest growth rate, fueled by growing environmental awareness, supportive government policies, and rising fuel prices. Consumers are increasingly adopting electric motorcycles, scooters, and mopeds as eco-friendly and sustainable alternatives to traditional internal combustion vehicles. Innovations such as enhanced battery life, extended range, and faster charging options are improving their usability and attractiveness. Urban commuters and environmentally conscious individuals are driving demand for electric models. Additionally, government incentives promoting zero-emission vehicles and the development of charging infrastructure further support market expansion.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share, fueled by dense populations, rapid urbanization, and the growing need for cost-effective personal transport. Major markets like India, China, and Indonesia drive demand due to rising incomes, extensive use of motorcycles and scooters, and supportive government initiatives encouraging two-wheeler adoption. In these regions, two-wheelers serve as essential vehicles for commuting, deliveries, and small business operations. The presence of leading manufacturers and a strong production and distribution network further reinforces the region’s market leadership. Overall, Asia-Pacific remains the dominant two-wheeler market, providing significant opportunities for both international and domestic companies seeking growth and expansion.
Region with highest CAGR:
Over the forecast period, the Europe region is anticipated to exhibit the highest CAGR, driven by rising interest in sustainable and urban transportation solutions. High fuel prices, congested cities, and environmental concerns motivate consumers to choose motorcycles, scooters, and electric two-wheelers for short trips. Countries like Germany, France, and Italy are seeing growing adoption of electric models due to government incentives, subsidies, and support for zero-emission mobility. Urbanization, evolving lifestyles, and the demand for compact, practical vehicles further stimulate market expansion. Advanced technological developments and the popularity of premium and connected two-wheelers also strengthen Europe’s market presence, making it a vital and expanding region within the global two-wheeler industry.
Key players in the market
Some of the key players in Two-Wheelers Market include Honda, Hero MotoCorp, Yamaha, Yadea, TVS Motor, Bajaj Auto, Suzuki, Royal Enfield, Italika, Zongshen, Mahindra Two Wheelers, Ola Electric, Ather Energy, Piaggio Vehicles and Eicher Motors.
Key Developments:
In November 2025, TVS Motors has entered into share purchase agreements to sell its stake in Roppen Transportation Services Private Limited (Rapido) for INR 287.94 crore. The sale involves two buyers: Accel India VIII Limited purchasing 11,997 Series D CCPS for INR 143.96 crore, and MIH Investments One B.V. acquiring 10 equity shares and 11,988 Series D CCPS for INR 143.98 crore. The transaction is subject to regulatory approvals and exceeds the materiality threshold under SEBI regulations.
In July 2025, Ather Energy and DPIIT have inked a MoU to Boost India’s EV and Deep-Tech Startup Ecosystem. Under the agreement, DPIIT and Ather Energy will offer strategic mentorship to deep-tech startups, helping them overcome core technology challenges and scale effectively. The partnership, formalised under the government-led Build in Bharat initiative, is spearheaded by the Startup Policy Forum (SPF), a network of over 50 innovation-driven startups.
In March 2025, Honda has struck a significant deal with its long-time rival, Toyota, to secure a steady supply of hybrid batteries, a move that underscores the escalating impact of U.S. trade policies. As reported by Japanese daily Nikkei, the partnership aims to mitigate the risks posed by burgeoning tariffs on imported components originating from China and Japan.
Vehicle Types Covered:
• Motorcycles
• Scooters
• Mopeds
Engine Capacities Covered:
• <100cc
• 101-125cc
• 126-250cc
• 251-500cc
• >500cc
Technologies Covered:
• Internal Combustion Engine (ICE)
• Electric
Price Ranges Covered:
• Economy
• Mid-range
• Premium
End Users Covered:
• Personal Use
• Commercial Use
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Table of Contents
200 Pages
- 1 Executive Summary
- 2 Preface
- 2.1 Abstract
- 2.2 Stake Holders
- 2.3 Research Scope
- 2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
- 2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions
- 3 Market Trend Analysis
- 3.1 Introduction
- 3.2 Drivers
- 3.3 Restraints
- 3.4 Opportunities
- 3.5 Threats
- 3.6 Technology Analysis
- 3.7 End User Analysis
- 3.8 Emerging Markets
- 3.9 Impact of Covid-19
- 4 Porters Five Force Analysis
- 4.1 Bargaining power of suppliers
- 4.2 Bargaining power of buyers
- 4.3 Threat of substitutes
- 4.4 Threat of new entrants
- 4.5 Competitive rivalry
- 5 Global Two-Wheelers Market, By Vehicle Type
- 5.1 Introduction
- 5.2 Motorcycles
- 5.3 Scooters
- 5.4 Mopeds
- 6 Global Two-Wheelers Market, By Engine Capacity
- 6.1 Introduction
- 6.2 <100cc
- 6.3 101-125cc
- 6.4 126-250cc
- 6.5 251-500cc
- 6.6 >500cc
- 7 Global Two-Wheelers Market, By Technology
- 7.1 Introduction
- 7.2 Internal Combustion Engine (ICE)
- 7.3 Electric
- 8 Global Two-Wheelers Market, By Price Range
- 8.1 Introduction
- 8.2 Economy
- 8.3 Mid-range
- 8.4 Premium
- 9 Global Two-Wheelers Market, By End User
- 9.1 Introduction
- 9.2 Personal Use
- 9.3 Commercial Use
- 10 Global Two-Wheelers Market, By Geography
- 10.1 Introduction
- 10.2 North America
- 10.2.1 US
- 10.2.2 Canada
- 10.2.3 Mexico
- 10.3 Europe
- 10.3.1 Germany
- 10.3.2 UK
- 10.3.3 Italy
- 10.3.4 France
- 10.3.5 Spain
- 10.3.6 Rest of Europe
- 10.4 Asia Pacific
- 10.4.1 Japan
- 10.4.2 China
- 10.4.3 India
- 10.4.4 Australia
- 10.4.5 New Zealand
- 10.4.6 South Korea
- 10.4.7 Rest of Asia Pacific
- 10.5 South America
- 10.5.1 Argentina
- 10.5.2 Brazil
- 10.5.3 Chile
- 10.5.4 Rest of South America
- 10.6 Middle East & Africa
- 10.6.1 Saudi Arabia
- 10.6.2 UAE
- 10.6.3 Qatar
- 10.6.4 South Africa
- 10.6.5 Rest of Middle East & Africa
- 11 Key Developments
- 11.1 Agreements, Partnerships, Collaborations and Joint Ventures
- 11.2 Acquisitions & Mergers
- 11.3 New Product Launch
- 11.4 Expansions
- 11.5 Other Key Strategies
- 12 Company Profiling
- 12.1 Honda
- 12.2 Hero MotoCorp
- 12.3 Yamaha
- 12.4 Yadea
- 12.5 TVS Motor
- 12.6 Bajaj Auto
- 12.7 Suzuki
- 12.8 Royal Enfield
- 12.9 Italika
- 12.10 Zongshen
- 12.11 Mahindra Two Wheelers
- 12.12 Ola Electric
- 12.13 Ather Energy
- 12.14 Piaggio Vehicles
- 12.15 Eicher Motors
- List of Tables
- Table 1 Global Two-Wheelers Market Outlook, By Region (2024-2032) ($MN)
- Table 2 Global Two-Wheelers Market Outlook, By Vehicle Type (2024-2032) ($MN)
- Table 3 Global Two-Wheelers Market Outlook, By Motorcycles (2024-2032) ($MN)
- Table 4 Global Two-Wheelers Market Outlook, By Scooters (2024-2032) ($MN)
- Table 5 Global Two-Wheelers Market Outlook, By Mopeds (2024-2032) ($MN)
- Table 6 Global Two-Wheelers Market Outlook, By Engine Capacity (2024-2032) ($MN)
- Table 7 Global Two-Wheelers Market Outlook, By <100cc (2024-2032) ($MN)
- Table 8 Global Two-Wheelers Market Outlook, By 101-125cc (2024-2032) ($MN)
- Table 9 Global Two-Wheelers Market Outlook, By 126-250cc (2024-2032) ($MN)
- Table 10 Global Two-Wheelers Market Outlook, By 251-500cc (2024-2032) ($MN)
- Table 11 Global Two-Wheelers Market Outlook, By >500cc (2024-2032) ($MN)
- Table 12 Global Two-Wheelers Market Outlook, By Technology (2024-2032) ($MN)
- Table 13 Global Two-Wheelers Market Outlook, By Internal Combustion Engine (ICE) (2024-2032) ($MN)
- Table 14 Global Two-Wheelers Market Outlook, By Electric (2024-2032) ($MN)
- Table 15 Global Two-Wheelers Market Outlook, By Price Range (2024-2032) ($MN)
- Table 16 Global Two-Wheelers Market Outlook, By Economy (2024-2032) ($MN)
- Table 17 Global Two-Wheelers Market Outlook, By Mid-range (2024-2032) ($MN)
- Table 18 Global Two-Wheelers Market Outlook, By Premium (2024-2032) ($MN)
- Table 19 Global Two-Wheelers Market Outlook, By End User (2024-2032) ($MN)
- Table 20 Global Two-Wheelers Market Outlook, By Personal Use (2024-2032) ($MN)
- Table 21 Global Two-Wheelers Market Outlook, By Commercial Use (2024-2032) ($MN)
- Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
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