India’s two-wheeler export industry is entering a strong growth phase, with recovering demand across emerging markets and rising shipments of premium motorcycles and scooters supporting a shift toward higher-value products.
According to India Ratings and Research (Ind-Ra), India’s two-wheeler exports are expected to grow 15–20% in FY27, following a record performance in FY26. Exports rose 23% year on year to 5.18 million units in FY26, surpassing the previous peak of 4.44 million units recorded in FY22. The momentum continued into the first quarter of FY27, when shipments increased 37%.
A notable feature of the current export cycle is the growing contribution of higher-value models. While overall export volumes recorded a compound annual growth rate of 3.9% between FY22 and FY26, exports of motorcycles above 200cc grew 12.8%, while scooter exports increased 18.2%. The trend is expected to improve export realisations and strengthen profitability for Indian manufacturers.
The export market is also becoming more geographically diversified. Indian manufacturers have traditionally relied heavily on African markets, but countries such as Colombia, Mexico and Brazil have now emerged among the country’s top export destinations. Expanding distribution networks and products tailored to individual markets are helping manufacturers strengthen their presence in Latin America and Southeast Asia.
Demand in Africa is also showing signs of recovery as inflation moderates and foreign-exchange availability improves. Shipments to Nigeria, which was India’s largest two-wheeler export market until FY24, began recovering in FY26, although volumes remain significantly below their FY22 levels. Sri Lanka’s gradual easing of vehicle import restrictions is providing an additional boost to regional demand.
The shift toward premium products is being supported by India’s increasingly diverse export portfolio. Recent export data shows strong demand for scooters and motorcycles across several segments, while newer and higher-capacity models are gaining traction in international markets.
Indian manufacturers are also expanding their international manufacturing and assembly footprint. Companies including Bajaj Auto and TVS Motor have established overseas operations, while global motorcycle brands are increasingly using India as a cost-effective production and export base.
India’s two-wheeler industry also recorded its highest-ever annual exports in FY26, with 51.8 lakh units shipped overseas, according to the Society of Indian Automobile Manufacturers (SIAM). SIAM attributed the export performance to a wider product range, stronger global recognition of Indian brands and competitive pricing supported by the rupee’s depreciation.
However, exporters continue to face risks from higher commodity, freight and logistics costs, currency volatility, weak purchasing power in some price-sensitive markets and possible import barriers. Competition from Chinese manufacturers is particularly strong in electric two-wheelers, where Indian exports remain a small proportion of overall shipments.
With emerging-market demand recovering and premium motorcycles and scooters gaining a larger share of overseas shipments, India’s two-wheeler export sector is gradually moving beyond a volume-driven model. The shift toward higher-value products and a wider geographic footprint could provide Indian manufacturers with stronger export revenues and improved margins in the coming years.