Facing a notable setback within their once-booming African markets, India’s leading two-wheeler producers experience a 20% decrease in motorcycle exports by FY23. Notably, Nigeria, a significant buyer of Indian two-wheelers, slashed its import share from 25% in FY20 to just 12% in FY23.
Despite these challenges, fresh horizons emerge. Growing demand from alternative regions like Mexico, the Philippines, LatAm, and Turkey presents vibrant avenues poised to rejuvenate India’s two-wheeler sales.
Dynamic Market Shifts
While African economies grapple with political and economic turmoil, causing a dent in their demand for two-wheelers primarily used for commercial purposes, newer markets are showcasing a contrasting trend. Nations such as Brazil, Colombia, Mexico, and the Philippines increasingly adopt scooters and premium two-wheelers for personal use.
Per Antique’s analysis, the initial quarter of FY24 saw India’s two-wheeler exports decline by a staggering 31%. Yet, the scooter sector witnessed a robust 40% growth. With African markets poised for recovery and Indian Original Equipment Manufacturers (OEMs) broadening their global footprint, FY24 might witness an upbeat shift.
Snapshot of India’s Pioneering Two-Wheeler Exporters
Bajaj Auto
With dominant exports to Nigeria, the Philippines, Colombia, and Uganda, Bajaj Auto accounts for 53% of its total export volumes from these nations. Spotting an opportunity in Brazil, the company endeavors to launch an assembling plant to engage the LATAM audience.
TVS Motors
For TVS, Guinea remained a pivotal export hub in FY23. Witnessing an 11% compounded annual growth rate from FY20-23, African demand played a pivotal role. Keen on diversification, TVS now turns its gaze to the LATAM and West Asian domains.
Honda Motorcycle and Scooter India: This Japanese behemoth identifies Colombia as its prime two-wheeler market. Despite having operations in Bangladesh, its LATAM aspirations remain intense.
Royal Enfield
Specializing in the luxury segment, Brazil, the US, Italy, and the UK emerge as key export destinations for Royal Enfield. With impressive credentials, the brand holds a 7% market stake in the US mid-weight sector and 9% across regions like the Asia-Pacific, Europe, and the Middle East.
To encapsulate, the Indian two-wheeler industry, despite facing African market adversities, remains resilient, adapting to evolving global demands. Emerging personal mobility trends in diverse regions could be the catalyst propelling the sector forward.
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