Global demand puts India's two wheeler exports back in top gear

Mumbai: Bajaj Auto, India's largest two-wheeler exporter, sold more two-wheelers overseas than in the domestic market in the June quarter, for the first time since Q1 FY23. Separately, TVS Motor , the second-ranked two-wheeler exporter, posted its highest-ever international sales, signalling a decisive turnaround in India's scooter and motorcycle exports.

The exports resurgence adds to a resilient domestic market, aided by a drop in two-wheeler prices after the government cut goods and services tax (GST) cuts last September. TVS' domestic sales rose 25% to 1.14 million units in the three months ended June, outpacing the market's 20% growth. Bajaj Auto's domestic sales grew at a relatively modest 11% to 586,547 units, as the company prioritised exports amid supply chain constraints.

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The revival in overseas shipments is visible across the industry. Total motorcycle and scooter exports rose nearly 37% to 1.5 million units in the June quarter from 1.1 million a year earlier, according to the Society of Indian Automobile Manufacturers (SIAM), despite supply chain disruptions arising from the US-Iran conflict.

Bajaj and TVS together accounted for nearly two-thirds of these shipments, underscoring how a rebound in demand across Africa, Latin America, and Asia is once again powering growth for India's two-wheeler makers, even as domestic motorcycle demand remains robust. Others such as Honda Motorcycle & Scooter India, Hero MotoCorp, and Suzuki Motorcycle India also reported export gains last quarter. For Bajaj Auto, the turnaround has been particularly striking. The company exported a record 636,005 two-wheelers in the June quarter, ahead of domestic sales of 586,547 units, a difference of nearly 50,000 units.

A year earlier, the company's local motorcycle sales had exceeded exports by more than 100,000 units, amid a prolonged disruption caused by foreign exchange shortages, import restrictions, and political instability across several emerging markets. Bajaj Auto last breached the 600,000-unit quarterly exports milestone in Q3FY21.

"The exports business has established an outstanding growth momentum," said Rakesh Sharma, joint managing director at Bajaj Auto, on a post-earnings call earlier this week, adding monthly exports are expected to cross 250,000 units starting this quarter.

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Africa, Bajaj's largest export destination, grew nearly 50%, led by strong demand in Nigeria for the Boxer Heavy Duty motorcycle. Latin America continued to deliver healthy growth, while KTM exports from India returned to growth after several quarters of weakness. Sharma said Bajaj outpaced industry growth in most overseas markets, resulting in market share gains, and expects export momentum to strengthen further in the second half of FY27.

TVS Motor mirrored the trend, reporting record international sales of 419,737 units in the June quarter, up 66% year-on-year.