Premium bikes and scooters drive India’s two-wheeler export boom

India's two-wheeler exports are shifting upmarket, with premium motorcycles above 200cc growing 12.8% annually and scooters 18.2% over the past four years, three to five times faster than overall shipments. The shift comes as manufacturers expand beyond traditional African markets into Latin America and Southeast Asia, where higher incomes support demand for larger bikes and urbanisation favours scooters.

Overall exports hit a record 5.18 million units in FY26, up 23%, and are projected to grow another 15, 20% in FY27, according to India Ratings and Research. Colombia, Mexico and Brazil are now among India's top 10 export destinations, reducing reliance on Africa, though Nigeria remains the largest single market. Exports to Nigeria are still at only 39% of their FY22 level due to currency and inflation pressures, leaving room for further recovery.

The premiumisation trend boosts realisations while a 15% rupee depreciation against the dollar since 2024 adds to profitability. Electric two-wheeler exports tripled in FY26 but remain below 1% of total shipments. Ind-Ra noted Indian makers face a tougher battle against Chinese EV manufacturers, who have scale and battery supply-chain advantages.