Two-wheelers for export in a context of volatile domestic market
India-made two-wheelers continue to enjoy strong acceptance in several overseas markets as exports remain on track for strong growth as bicycle shipments doubled and scooter exports more than tripled over the course of the year. of this exercise.
The domestic market has seen disruption due to many players with electric products and volatile demand for conventional two-wheelers. But stable exports continue to support OEMs, especially local players.
From April to August 2021, total two-wheeler exports stood at 18.87 lakh units, compared to 7.74 lakh units in the period of the previous year. Motorcycle exports more than doubled to 17.22 lakh (7.36 lakh), while scooter shipments reached 1.58 lakh (37,000 more). In FY21, the total exports of two-wheelers amounted to 32.7 lakh.
Africa, LATAM focus
If the current growth trend continues, total exports of two-wheelers from India could exceed pre-Covid export volumes by the end of this fiscal year. In FY20, total exports amounted to 35 lakh units.
“Two-wheeler exports from India have grown at a steady pace and have now exceeded pre-crisis levels, aided by the recovery in demand in key African markets, LATAM. In addition, Indian OEMs have actively extended their market coverage in similar markets as domestic demand has been lackluster in recent years. In many markets, especially in Africa, Indian OEMs have much stronger brand recall and acceptability than Chinese brands, ”said Shamsher Dewan, vice president and group leader, ICRA.
Bajaj Auto and TVS Motor, the two main players in two-wheeler exports, have significantly increased their shipments. Bajaj’s total motorcycle exports increased to 9.11 lakh units (4.43 lakh) in the first five months of this fiscal year. TVS Motor’s bicycle exports amounted to 4.42 lakh units (1.74 lakh). Hero’s exports reached 1.25 lakh (46,000 more).