In slow lane. Two-wheeler exports fall due to ban on motorcycle taxis in African countries

While 2021 saw two-wheeler exports hitting record highs for different brands, a ban on motorcycle taxis in some African countries saw exports hit the lowest this year in August. On the other hand demand in the local market has bounced back with domestic sales nearly three times that of exports this year.

As the Indian automobile market opened post-Covid, in 2022, domestic sales of two-wheelers have gained momentum since January.  According to data from the Society of Indian Automobile Manufactures (SIAM), August witnessed the highest domestic sales of two-wheelers, with more than 15 lakh vehicles sold. In August 15,57,429 two-wheelers were sold in the domestic market while 3,03,692 were exported. 

The growth in domestic sales of two-wheelers between January and August is 99,99,876 with vehicles sold and 29,11,680 vehicles exported. Earlier, businessline had reported that exports had hit record high for most two-wheeler brands. Export share in Bajaj Auto’s total sales in 2021 stood at nearly 56 per cent against 49.44 percent in 2020. Exports of Bajaj Auto in 2021 grew 32.5 percent to 2.23 million (1.68 million in 2020). TVS Motor company export contribution grew to 34 percent in 2021 from 24.44 per cent in 2020.

Demands from South Asia, West Africa and Latin America had helped TVS to grow exports by 71 percent to 1.09 million units in 2021 (6.43 lakh in 2020) and Hero MotoCorp had clocked a growth of 71 percent in export volumes to 2.89 lakh in 2021 (1.69 lakh in 2020). But now exports of two-wheelers in the country are seeing an impact due to the ban on motorcycle taxis, according to experts. 

“The export growth rate is on a high base and hence seems to be on a downfall. The ban on Okadas in key markets in Africa is also starting to show in terms of numbers for exports. Domestic sales are also showing some improvement during the festival season,” said Hemal Thakker, Director of transport, logistics & mobility at CRISIL Limited. As the domestic sales of two-wheelers are increasing experts say rise in inflation, fuel and product prices will continue to impact entry-level two-wheel consumers. 

“Domestically inventory situation is also high, but with minor tweaks to OBD II implementation, we should see a high single-digit growth for the current fiscal on an abysmally low base. The impact on a commuter segment of two-wheelers, entry-level cars, and low-ticket consumables is largely on account of income pressures, inflation growth, and increase in ownership costs on account of inflated fuel prices and low-interest rates too,” added Thakker.

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