A strong recovery in key export markets like Africa, Latin America and ASEAN sees 3.83 million motorcycles and scooters shipped overseas in the past 11 months, marking 22% YoY growth and a welcome relief after the dampened exports in FY2024 and FY2023. The revival in export demand have benefited most OEMs with Bajaj Auto, TVS Motor Co, Honda, Yamaha and Hero MotoCorp registering robust gains. Bajaj is making big gains in Brazil where over 10,000 Dominars have been produced.
15 Mar 2025 | 1132 Views | By Ajit Dalvi
FY2025, which draws to a close after a fortnight on March 31, has been good to the Indian two-wheeler industry, which comprises motorcycles, scooters and mopeds. In the domestic market, wholesales in the fiscal’s first 11 months were 17.95 million units, an increase of 9% YoY. Two-wheeler exports too are ...
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FY2025, which draws to a close after a fortnight on March 31, has been good to the Indian two-wheeler industry, which comprises motorcycles, scooters and mopeds. In the domestic market, wholesales in the fiscal’s first 11 months were 17.95 million units, an increase of 9% YoY. Two-wheeler exports too are having a good run – the 3.83 million units shipped between April 2024 and February 2025 have jumped 22% YoY on year-ago shipments of 3.13 million units.
Importantly, FY2025’s strong growth marks a return to positive territory after two straight fiscals of export sales decline: FY2023 (36,52,122 units, down 17.80%) and FY2024 (34,58,416 units, down 5.30%). FY2022 with 4.44 million exports was India 2W Inc’s best fiscal for overseas dispatches. At this stage of the current fiscal, the industry is 609,427 units away from that figure and will fall around 200,000 units short. FY2025’s total 2W exports are likely to be around 4.23 million units, which nevertheless will constitute YoY growth of 22 percent.
While motorcycle exports at 32,91,799 units (up 23.7%) account for 86% of total exports till end-February 2025, scooter shipments at 535,276 units are up 14.3% YoY (April 2024-February 2025: 468,460 units) and have a 14% share of total exports. Moped exports at 6,516 units are up 192% YoY.
BAJAJ AUTO TO EXPAND CAPACITY IN BRAZIL, BENEFITS FROM RECOVERY IN AFRICA, LATAM & ASEAN
Bajaj Auto remains the undisputed No.1 two-wheeler exporter, with overseas dispatches of 1.54 million units (up 15% YoY) which comprise 15,41,982 motorcycles and 6,242 Chetak electric scooters. This gives Bajaj Auto an export market share of 40%, down from the 43% it had a year ago in 11 months of FY2024. The 2W export market leader has benefited hugely from the rebound in exports.
Speaking after Bajaj Auto announced its Q3 FY2025 results, executive director Rakesh Sharma was optimistic about exports this year: “There is recovery and Africa is back into the positive growth zone. The strong recovery is in places like Latin America and ASEAN. Going forward, in export, we still need to be watchful of the currency-led volatility, particularly in South Asia and Africa. But barring that, we expect exports to continue to grow at 20%-plus levels on year-on-year basis.”
Compared to H1 FY2025, when Bajaj’s exports in the entry-level up to 110cc fuel-efficient motorcycle category were down 26% to 249,367 units, reflecting the distress in some key African markets, the scenario after the first 11 months of the fiscal is vastly different. At 590,111 units, exports of the Boxer, CT, Discover and Platina are flat but in positive territory, up 0.29% on year-ago dispatches of 588,355 units.
Export demand for Bajaj bikes though improves as the cubic capacity grows higher. The 110-125cc category fared much better – 362,299 units, up 43% YoY. The 125-150cc category saw exports of 221,138 units, up 28 percent. Dispatches in the 150-200cc category (Husqvarna, KTM, Pulsar) at were up 10% at 209,157 units (189,731) albeit the numbers in this sub-category would have been higher if it weren’t for the ongoing restructuring issues at KTM.
Next up is the 200-250cc segment where 78,134 units were exported, up 12 percent. And, with exports of made-in-India Triumph motorcycles kicking off in Q1 FY2025, demand in the 350-500cc category in April-September 2024 rose strongly by 9% to 81,143 units on year-ago dispatches of 74,667 units.
Bajaj Auto is betting big on Brazil, of the largest motorcycle markets worldwide, to be amongst its top three global markets. In June 2024, it commissioned a new plant in Manaus Free Trade Zone, Brazil, with an annual capacity of 20,000 units on a single-shift basis and rolling out motorcycles under the ‘Dominar’ brand. According to Rakesh Sharma, Bajaj do Brazil which recorded its highest ever retail and production in Q3 FY2025, is now already running at peak capacity. “The Dominar brand has raised ahead of several established European brands in the personal segment. Management has approved a further expansion of capacity to 50,000 units-plus level per annum, which should be in place by the final quarter of FY2026,” he had said in a conference call in end-January 2025.
On January 22, 2025, the Brazilian plant rolled out its 10,000th motorcycle just seven months after its inauguration. These 10,000 units comprised 1,780 Dominar 160s, 2,175 Dominar 200s, 1,560 Dominar 250s and 4,485 Dominar 400s.
TVS RULES THE 110-125cc BIKE EXPORT MARKET WITH 514,152 UNITS
TVS Motor Co, the longstanding No. 2 exporter, has shipped 987,250 two-wheelers in the past 11 months, up 23% YoY, which gives it an export market share of 26%, the same as in the year-ago period. The shipments comprised 894,545 motorcycles (up 29% / 695,402), 86,189 scooters (down 19%) and 6,516 mopeds (up 192%). TVS currently sells its two-wheelers in over 80 countries in key markets across Asia, Africa and Latin America.
Like Bajaj Auto, TVS has seen a strong rebound in demand for its entry-level motorcycles. The 110cc Radeon, Sport and Star City have clocked exports of 257,031 units, up 63% on the year-ago 157,691 units. TVS rules the export market in the 110-125cc segment: the 514,152 units of the Raider 125 and Star City 125 are an increase of 19% on year-ago 433,096 units and 151,853 units ahead of Bajaj Auto (362,299 units).
In the past year, the company has strategically entered new markets like Nepal, Vietnam, and France. And it has also begun exporting the made-in-Hosur BMW CE 02 electric scooter as well as its own iQube electric scooter. In the last 11 months, TVS’ EV exports are 5,509 units, up massively on low year-ago 249 units. They comprise the BMW CE 02 (which it produces at its Hosur factory) and the TVS iQube (to ASEAN and Asian markets).
In an effort to accelerate its 2W exports and capture new business in the Middle East, Africa and Europe, TVS Motor Co is setting up a hub in Dubai which is likely to serve as a central point for international operations including regional sales and marketing, aftersales support and parts distribution.
Honda Motorcycle & Scooter India has exported 478,975 two-wheelers, up 43% YoY. This comprised 2,96,267 / 215,313 scooters, which is a strong 65% increase YoY, and 182,708 / 119,718 motorcycles, up 00% YoY. This gives HMSI an export market share of 12%, the same as a year ago.
Honda is working on a strategic export growth programme. A year ago, in April 2024, HMSI inaugurated a state-of-the-art engine assembly line at its Global Resource Factory in Manesar, Gurugram (Haryana), with a focus on CKD (Completely Knocked Down) exports. The new assembly line has a manufacturing managing of 600 engines a day and can produce engines for models ranging from 110cc to 300cc, catering to diverse needs and preferences of Honda customers globally.
India Yamaha Motor takes fifth rank with total exports of 267,685 units, up 34% YoY. The bulk of its exports comprised bikes – 204,237 units, up 24 percent on year-ago 165,126 units. The key volume contributors were the FZ and SZ (120,213, up 28%), Crux (42,822, up 45%). Export demand for Yamaha scooters doubled – the 63,448 units were up 86% YoY and comprised 63,141 Fascino and Ray, and 307 Aerox vs 84.
Hero MotoCorp, the world’s largest two-wheeler manufacturer and the domestic market leader, is upping the ante on its global manufacturing footprint. The company, which entered the growing Southeast Asian market by commencing operations in the Philippines on August 1, 2024, plans to now bring Brazil into its ambit.
The company is witnessing demand rise for its exports – the 250,150 units in April 2024-February 2025 represent a strong 47 YoY increase and comprises 222,138 bikes (up 55%) and 28,012 scooters (up 7%). The company now has three overseas assembly plants – in Bangladesh (150,000 units per annum), Colombia (80,000 per annum), Nepal (75,000 units per annum) and the Philippines (150,000 units per annum).
Suzuki Motorcycle India is the sole OEM to see a decline in its export – 190,305 units, down 3%, with its performance dragged down by the 38% YoY decline in scooter dispatches (46,030 units, 73,961). Suzuki motorcycle shipments at 144,275 units were up by 19% YoY / 121,428. This performance has meant that its export market share is down to 5% from 6% a year ago.
Royal Enfield dispatched a total of 94,171 bikes in the first 11 months of FY2025, up 38% YoY. RE’s line-up includes the Hunter 350 roadster, Meteor 350, Super Meteor 650 cruiser, Interceptor 650 and Continental GT 650 twins, Shotgun 650, the all-new Himalayan adventure tourer, the Scram 411 ADV Crossover, and the Bullet 350 and Classic 350. The 350cc bikes accounted for 44,268 units, up 6% on year-ago 41,820 units. Where RE has received a huge boost is in export demand for its new Guerilla 450 and also the Himalayan 450: the 26,914 units are a 366% jump on a low year-ago base of 5,767 units. The 650cc bikes have clocked 22,989 unit sales, up 10% on 20,813 units.
Along with its two production facilities at Oragadam and Vallam Vadagal, near Chennai. Royal Enfield also has five modern CKD assembly facilities in Nepal, Brazil, Thailand, Argentina and Colombia.
FY2025 2W EXPORTS HEADED FOR 4.23 MILLION UNITS
What is heartening is that the reviving two-wheeler export growth story is benefiting all the major OEMs, which augurs well for India Two-Wheeler Inc. Strong domestic sales can only add tailwind to that growth trajectory.
With one month left to go in FY2025 and at 3.83 million units, up 22% YoY, the Indian 2W industry is 609,427 units away from FY2022’s record 4.4 million exports and will likely fall short by around 200,000 units. FY2025’s total 2W exports are likely to be around 4.23 million units, which nevertheless will constitute YoY growth of 22 percent.
Judicious management of both domestic and export market sales help inventory management as well as capacity utilisation. The top three players – Bajaj Auto, TVS and Honda – have each recorded smart export growth in the past 11 months and with demand picking up in their previously stressed but strategic export markets, it is expected things can only get better in the months to come. The icing on the export ‘cake’ is that the profit margins are often better on the made-in-India products.