Two-wheeler exports show revival signals in December 2023 quarter

NEW DELHI : Two-Wheeler exports from India appear to be exhibiting signs of revival with the December 2023 quarter reporting positive growth, supported by a strong increase in shipments of India-built scooters.

Though overall two-wheeler exports for the 9 months of the current fiscal is lower when compared with the year-ago period, the October-December 2023 quarter period saw an increase in shipments of two-wheelers when compared with the year-ago period, according to the data provided by the Society of Indian Automobile Manufacturers.

Total two-wheeler exports for the December 2023 quarter stood at 8.57 lakh units when compared with 8.46 lakh units in the year-ago quarter. Total motorcycle sales were lower at 7.36 lakh units as against 7.63 lakh units, scooter exports grew to 1.2 lakh units when compared with about 83,000 units in the December 2022 quarter.

Also, two-wheeler exports in December 2023 grew to about 2.88 lakh units when compared with 2.72 lakh units in December 2022.

India’s leading two-wheeler exporters Bajaj, TVS Motor, and Honda reported an increase in their exports. Bajaj Auto, India’s leading two-wheeler exporter, saw its exports grow to about 1.25 lakh units in December 2023 when compared with 1.22 lakh units in December 2022. TVS Motor’s two-wheeler exports stood at 75,000 plus units as against 66,300 units. Honda Motorcycle & Scooter India’s two-wheeler shipments witnessed an increase to about 31,000 units as against 17,000 units.

“Market conditions in some of the key destinations are improving. But it is a little early to conclude about the rebound in demand,” said an auto analyst at a broking house.

Two-wheeler exports were hit mainly by headwinds in African markets, which accounted for the major portion of our two-wheeler exports. Though the demand scenario has been improving, some of the key markets are yet to return to normal levels.

K N Radhakrishnan, Director & CEO, TVS Motor Company, had indicated that the second half of this fiscal would see a revival in two-wheeler exports. The company already has a reasonable presence in the African region and has been expanding its presence in new markets like Latin America and ASEAN, where the company was present only in a few countries.

For the 9-month period of this fiscal, total two-wheeler exports stood at 25.421 lakh units when compared with 29.51 lakh units in the April-December 2022 period. Bajaj Auto accounted for about 44 per cent of the total two-wheeler exports, followed by TVS Motor Company (26 per cent), and Honda Motorcycle (10 per cent).

“While exports of Bajaj have yet to reach their previous peaks (average monthly run rate of 2 lakh units) yet but export volumes appear to be bottomed out. Average monthly export volume run rate in Q3FY24 stood at 140,905 units when compared with 133,708 units in H1FY24. The management is expecting export volume run rates in Q4FY24 to be better than Q3FY24,” according to analysts at Sharekhan.