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As the domestic sales witnessed a year-high in October, exports of two-wheelers fell 3.62 per cent month-on-month in October.
As per the Society Of Indian Automobile Manufacturers (SIAM) data, exports of two-wheelers in October 2022 was 2, 91,276 units, while in September the exports was 3, 02,220 units.
While the domestic sales of two-wheelers in October was 18, 95,799 units as compared with 17, 49,794 units in September.
Key challenges
Devaluing of currency in developing countries, making exports expensive, and inflationary pressures are said to be the main reasons for the fall in exports.
“The decline in motorcycle exports does not exhibit any definitive pattern across the various engine capacities, indicating that the overall demand has weakened from importing countries. Q1FY24 has witnessed an overall 31 per cent decline in export volumes of two-wheelers, driven by a 37 per cent decline in motorcycle sales volumes, which was partly offset by a 30 per cent rise in scooter volumes,” mentions a CareEdge Ratings report.
Meanwhile, companies are anticipating a slow pick-up in exports.
- Also read: Two-wheeler sales on a one-year high
“Our exports are still at about 66 per cent or two-thirds of the peak, which we had recorded in the FY22 but sequentially, there is an 8 per cent to 10 per cent quarter-on-quarter improvement in both retail and our shipments, and this has occurred across all regions. Africa is a double-digit improvement powered by Nigeria on a quarter-on-quarter basis. Asia, MENA — Middle East and North Africa, and LATAM are single-digit improvements. The macroeconomic environment combined with the new geopolitical issues remain uncertain and in particular, the financial systems have adapted to this as the new normal which is leading to some improvement in forex availability for trade. Currency-led inflation has continued to dampen the pace of recovery after the sharp fall in H1 of last year,” said Rakesh Sharma, Executive Director, Bajaj Auto, during the company’s earnings call.
Three wheeler export
Exports of three-wheelers also fell 12 per cent month-on-month in October. 25,534 units were exported in October as compared with 29,052 units in September.
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