Dampening demand in countries like Sri Lanka, Bangladesh, and Nigeria has led to a 41 per cent decline in exports of two-wheelers in January year-on-year.

According to the Society Of Indian Automobile Manufacturers (SIAM) data, exports of two-wheelers in January were 2,20,103 units, whereas the exports in January 2022 were 3,74,966 units.

In January, 11,84,379 two-wheelers were sold in the domestic market, compared to 11,40,888 vehicles sold in January 2022.

According to experts, the drastic fall in two-wheeler exports is due to the devaluation of currency and inflationary pressures.

“High inflationary trends and devaluation of local currency vis a vis the USD impacting affordability has affected demand for two-wheelers in key markets of Sri Lanka, Bangladesh, Latin America and Africa resulting in lower exports of two-wheelers from India for most of fiscal 2023,” said Anuj Sethi, Senior Director, CRISIL Ratings Ltd. 

Export pickup by March  

Restrictions on foreign exchange affecting payments have also impacted exports. Indian companies are anticipating exports to pick up in March. 

“There has been a decline in demand for exports by 30 per cent. Emerging markets depend on imports while demand is coming down. Nigeria is an important market for us and there is a demonstration there. We expect normalcy by the middle of March,” said Rakesh Sharma, Executive Director of Bajaj Auto Ltd, during the company’s December quarter results. 

Three-wheeler export

Exports of three-wheelers also witnessed a dip in January.

In January, 23,080 three-wheelers were exported, as opposed to 39,151 units in January 2022.

“The factors are also impacting the three-wheeler exports to Sri Lanka, Africa and Bangladesh,” added Anuj Sethi. 

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