India-made two wheelers continue to enjoy strong acceptance in several overseas markets as exports stay in strong growth lane with bike shipments doubling and scooter exports witnessing more than three fold growth during this fiscal.
The domestic market has seen disruption due to numerous players with electric products, and volatile demand for conventional two wheelers. But steady exports continue to support OEMs, particularly the home-grown players.
During April-August 2021, the total two-wheeler exports stood at 18.87 lakh units when compared with 7.74 lakh units in the year-ago period. Motorcycle exports more than doubled to 17.22 lakh units (7.36 lakh), while scooter shipments grew to 1.58 lakh (37,000 plus). In FY21, total two-wheeler exports stood at 32.7 lakh.
Africa, LATAM focus
If the present growth trend continues, the total two-wheeler exports from India may surpass pre-Covid export volumes by the end of this fiscal. In FY20, total exports stood at 35 lakh units.
“Two-wheeler exports from India have been growing at a healthy pace and have now crossed pre-covid levels aided by demand recovery in key markets in Africa, LATAM. In addition, OEMs from India have been actively expanding market coverage in similar markets as domestic demand has been lacklustre for the past few years. In many markets, especially in Africa, Indian OEMs have much stronger brand recall and acceptability vis-a-vis Chinese brands,” says said Shamsher Dewan, Vice-President & Group Head, ICRA.
Both Bajaj Auto and TVS Motor, the top two players in two-wheeler exports, have grown their shipments significantly. Bajaj’s total motorcycle exports have grown to 9.11 lakh units (4.43 lakh) during the first five-months of this fiscal. TVS Motor’s bike exports stood at 4.42 lakh units (1.74 lakh). Hero’s exports grew to 1.25 lakh units (46,000 plus).