Bajaj Auto Restricted, India’s largest exporter of bikes, has made a robust announcement, claiming the highest place as India’s largest motorbike maker by gross sales volumes. Bajaj stated that the corporate has began the April 2021 to March 2022 monetary yr as India’s primary motorbike producer, with worldwide gross sales of three,48,173 items in April 2021, using on exports of two,21,603 items, or practically 64 per cent of general gross sales. Bajaj Auto’s declare is technically right, since Hero MotoCorp, India’s largest two-wheeler producer despatched solely 3,39,329 items in April, though a short shutdown of Hero’s crops because of the ongoing second wave of the COVID-19 pandemic helped Bajaj take the lead.
Additionally Learn: Bajaj Overtakes Hero In April 2021 Month-to-month Motorbike Gross sales
The extra pertinent determine although, is the huge exports volumes of Bajaj Auto, which retains its place as India’s prime vehicle exporter. In FY20-21, Bajaj accounted for nearly 60 per cent of motorbike and three-wheeler exports. With 52 per cent of the corporate’s volumes exported to over 79 international locations, Bajaj Auto’s export revenue stood at ₹ 12,687 crore. However Bajaj isn’t alone. Only a month in the past, TVS Motor Firm, which comes an in depth second to Bajaj in India’s two-wheeler exports, reported its highest-ever month-to-month two-wheeler exports, crossing the 100,000 unit mark in March 2021.
Additionally Learn: TVS Data Highest-Ever Month-to-month Two-Wheeler Exports In March 2021
Commenting on the milestone, Sudarshan Venu, Joint Managing Director, TVS Motor Firm, stated, “Together with our business friends, we sit up for proceed taking part in a job in making Indian two and three-wheelers fashionable and aspirational in lots of world markets. Over the previous months, we now have witnessed progress throughout numerous geographies with a particular shift to premiumisation. We are going to attempt to maintain this momentum going ahead as we search to please prospects with our thrilling vary of merchandise. Investments in know-how and the way forward for mobility might be essential for us within the subsequent part of our progress and transformation.”
Additionally Learn: Honda Two-Wheelers India Units Up New Abroad Enterprise Vertical
And this deal with abroad markets appears to be a rising development, throughout producers. Earlier this month, Honda Motorbike and Scooter India (HMSI) introduced establishing a brand new Abroad Enterprise vertical with the goal to advertise India as a worldwide export hub for Honda. Whereas HMSI has been exporting its two-wheelers to a number of international locations, notably made-in-India fashions just like the Dio and NAVI to Latin American international locations, the brand new vertical is predicted to take Honda’s export targets a notch increased. For April 2021, Honda Two-Wheeler India additionally introduced its best-ever export volumes in over three years, with the Honda SP 125 now being exported to Europe, and the made-in-India Honda H’Ness CB350 and Honda CB350RS at the moment are exported to even Honda’s house market of Japan.
“With an eye fixed on the long run, Honda 2Wheelers India goals to additional consolidate its No. 1 place in Honda’s world motorbike enterprise whereas unlocking the subsequent chapter of ‘Make in India, for India & the World’ within the BS-VI period. With this main organisational restructuring, the corporate is strengthening its enterprise structure and bettering competitiveness to fulfill the excessive expectations from World Honda,” stated Atsushi Ogata, Managing Director, President and CEO, Honda Motorbike and Scooter India.
Additionally Learn: Royal Enfield Gross sales Down By 19 Per Cent Month-on-Month
One other of India’s most well-known motorbike manufacturers, Royal Enfield takes delight in calling itself the worldwide chief within the mid-size motorbike market. The Royal Enfield 650 Twins, launched in 2018, spearheaded Royal Enfield’s world aspirations, adopted by the launch of the brand new Meteor 350, and the up to date Himalayan, that are all now positioned as world merchandise. In truth, the Himalayan and the 650 Twins have gone on to make fairly an impression, even in developed markets like North America. However the numbers belie Royal Enfield’s abroad ambitions. The home market is the place Royal Enfield nonetheless will get its lion’s share of volumes, with exports accounting for simply 6.3 per cent of general gross sales in FY2020-21.
Additionally Learn: Bajaj Auto Turns into World’s Most Priceless Two-Wheeler Firm
“Bajaj Auto is within the lucky place that half of what we make is exported. As was the case final yr, our exports will maintain us in good stead; no less than we will hold our nostril above the water. So far as home gross sales are involved, for bikes specifically, and particularly for the entry-level 100-125 cc bikes, the present yr continues to be monitoring under final yr,” Rajiv Bajaj, Managing Director, Bajaj Auto, stated in a current tv interview.
“Initially within the festive season, in September and October 2020, foundation the exuberance of inventory build-up, it was camouflaged. However that camouflage was unraveled in current months, and that is clear to everybody. And now, by way of sentiment, if shoppers are going to be involved about their jobs and their wages, it’s not going to assist any of us. And I can let you know, whether or not it is Bajaj Auto, or a few of the different massive two-wheeler makers, all of us, in the previous couple of days, no matter which state we’re working in, have decreased our home gross sales forecast by about 15 per cent. There’s quite a lot of chaos at dealerships all around the nation,” added Bajaj.
Additionally Learn: COVID-19 Delays First Motorbike From Bajaj-Triumph Alliance To 2023
Clearly, exports could also be only one a part of the story. The Indian two-wheeler business is basically depending on the home market, being the world’s largest two-wheeler market that it’s. And if market challenges, financial circumstances and general shopper sentiment will proceed to be low, notably in excessive volumes segments, a deal with solely exports isn’t possible to assist ease the state of affairs for producers. In truth, the current spike in exports is seen by many observers as an alternative choice to push extra volumes abroad, moderately than have standing stock in dealerships within the home market, the place lockdowns are in place in lots of locations.
“Export demand has gone up in South African and Nigerian markets together with different components of the continent, which is a giant export marketplace for Indian two-wheeler producers. Then, the pent up demand in export markets put up COVID restoration interval has additionally added as much as exports. Lastly, since gross sales in home market is impacted because of COVID, automakers are utilising their stock and provide chain for export markets,” stated Shamsher Dewan, Auto Analyst, ICRA Restricted, an unbiased Indian funding data and credit standing company.
With staggered and restricted lockdowns throughout a lot of India in the course of the ongoing lethal second wave of the COVID-19 pandemic, the subsequent few months might hit home two-wheeler gross sales arduous. Whereas March 2021 two-wheeler gross sales have been promising, the month-on-month decline in April 2021 gross sales volumes has been trigger for concern. And with no indicators of the second wave of the pandemic abating in India, and with newest reviews of even a 3rd wave hitting India in direction of the second half of 2021, the auto business appears to be like set for a tough trip forward.