Two-wheeler OEMs have witnessed a silver lining on the exports front in the recently ended fiscal 2020. Though the industry saw 18% degrowth in domestic sales due to overall economic slowdown from the beginning of the fiscal as well as the nationwide lockdown at its fag end, exports brought some cheer to the industry with 7.3% growth in the fiscal as most of the players had tweaked their strategy early during the year with a major focus on export markets. Growth in exports during the fiscal under review helped the industry from reporting the worst-ever degrowth over the past few years.
As per SIAM data, total two-wheeler sales for the financial year ended March 31, 2020, declined 14% to 2,10,36,294 units (2,44,99,777 units in fiscal 2019). Of the total volume, domestic sales were at 1,74,17,616 as compared to 2,11,79,847 units in the previous fiscal, a degrowth of 18%. However, exports during the fiscal under review grew 7.3% to 35,20,376 units, against 32,80,841 units in the last fiscal. Recovery in markets such as Africa, Latin America, Central America, African region and Southeast Asia region have helped Indian two-wheeler companies to expand their presence further with an increased exports, said industry observers.
Leading players, such as Bajaj Auto, TVS Motor, Royal Enfield, have expanded their presence in these countries by roping in new distributors or by launching new products in those countries. According to SIAM data, all the three segments of two-wheeler industry – scooters, motorcycles, mopeds – degrew 17%, 18% and 28%, respectively, on the domestic sales front. However, on the exports front, motorcycles, the only segment which played a pivotal role, reported a healthy growth of 9.5% while the other two degrew 7% and 17%, respectively. During the fiscal, motorcycles exports were at 31,36,519 units, against 28,65,851 units exported in the last fiscal. Leading the two-wheeler export bandwagon during the fiscal was Bajaj Auto with its exports growing 10.24% to 18,69,220 units which was almost to its domestic sales of 20,78,348 units (a degrowth of 18.22%).
Similarly, the next big exporter was TVS Motor, which shipped 678,841 units, registering a 9.14% growth over its last fiscal’s shipment. India Yamaha Motor exported 298,034 units, clocking a 23% growth over the last fiscal and Suzuki Motorcycle India witnessed an export growth of 34% to 105,164 units. Royal Enfield saw a 88% growth in exports during the fiscal to 39,188 units, the Society of Indian Automobile Manufacturers (Siam) data said.
According to SIAM, every other original equipment manufacturer (OEM) of two-wheeler, except Suzuki Motorcycle India, have reported degrowth in their total sales in fiscal 2020. Largest player Hero MotoCorp has reported a degrowth of 18% in total volume to 64,44,828 units, followed by the next big player – Honda Motorcycle, with 13% decline in its total sales to 51,29,532 units.Bajaj Auto ended the fiscal with a degrowth of 7% to 39.42 lakh units while TVS Motor posted an 18% decline in its total sales to 30.88 lakh units.
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