Two-wheeler exports witnessed a growth of 23 per cent in the first half of 2024 with 18, 37,769 two-wheelers exported between January and June, data from the Society of Indian Automobile Manufacturers (SIAM) showed. This recovery in exports is however seen to be fragile.
According to the data, two-wheeler exports picked up in February with 3, 28,082 vehicle units. However, a 8 per cent month-on-month dip was seen in June with 2, 88,967 two-wheelers being sold overseas.
The exports of two-wheelers between January and June in 2023 were 14, 92,080 units.
Exports of two-wheelers from India are majorly focused on Columbia, Nigeria, Philippines, Mexico, Sri Lanka, Bangladesh, Egypt and Nepal. Industry experts have alluded the growth to the easing of geopolitical tensions but have indicated that the uptick in exports is required to be sustainable.
“Export recovery appears fragile and sustainability of the same is yet to be established. Earlier, exports had been impacted by consumer price inflation, high interest rates and foreign currency-related issues in fiscals 2022 and 2023. During this period, consumers switched to used vehicles or deferred purchases,” said Anuj Sethi, Senior Director of CRISIL Ratings Ltd to businessline.
Original equipment manufacturers (OEMs) have been evaluating new markets to tap to grow their exports and international presence. Two-wheeler manufacturer Bajaj Auto recently announced the opening of its new manufacturing plant in Brazil.
The domestic sales of two-wheelers also saw a 22.5 per cent uptick in H1. Between January to June 94, 89,154 two-wheelers were sold in the Indian market a compared with 77, 45,554 two-wheeler units sold during the same period in 2023.
“The slow moderation in export growth during 2024 can be attributed to a slowdown in demand from African and Asian countries,” said an automobile analyst.