The export journey of home-grown two-wheeler makers is achieving boost as they post significant growth in shipments across a larger market.

The growing two-wheeler exports, specially penetrating deeper in markets of Africa, Latin America and ASEAN strengthens the domestic market when it is going through a slowdown due to stagnant demand.

While motorcycle shipments during 2018-2019 have increased by 15 per cent at about 2.9 million units, scooter exports registered an increase of 27 per cent at 3.98 lakh units during the year. Though the growth rate in bikes has come down (from 22 per cent in 2017-18), expansion to more markets has enabled to maintain the double-digits export growth.

Bajaj is the largest exporter of two-wheelers from India, followed by TVS Motor and Hero MotoCorp.

Two-wheeler exports, which have been on a growth chart since Q4 FY2017, peaked in Q1 FY2019 with a year-on-year growth of 30 per cent. The double-digit growth in exports in FY19 has been driven by major come back in key markets such as Nigeria and Egypt. It was further boosted by the entry of Indian companies into new markets in Latin America and ASEAN, according to Subrata Ray, Group Vice-President – Corporate Ratings, ICRA.

“Though these markets are small, they have high growth potential and diversely offer diversification benefits. Going forward, improvement in export volume will likely continue, but at a moderate pace, as the collision of high base catches up,” he added.