Two-wheeler makers ride export momentum, remain cautious on FY27 outlook

Hero MotoCorp, TVS Motor and Bajaj Auto reported export milestones in FY26, but flagged geopolitical tensions, inflation and supply-chain risks for FY27

India’s leading two-wheeler manufacturers are entering FY27 with cautious optimism, counting on sustained export momentum amid an increasingly uncertain global environment.

 

Hero MotoCorp, TVS Motor Company and Bajaj Auto achieved significant export milestones in FY26. However, their FY26 annual reports also flagged geopolitical tensions, inflationary pressures and supply-chain disruptions as potential risks to growth in the current financial year.

 

Hero MotoCorp said in its annual report that its cumulative exports crossed 5 million units during FY26, supported by strong demand across Latin America and its entry into European markets, including Germany, Italy, Spain and the United Kingdom.

 

TVS Motor said in its annual report that it recorded its highest-ever quarterly exports of around 400,000 units, while export revenue rose to ₹2,885 crore. Its Indonesian subsidiary, PT TVS Motor Company Indonesia, also crossed 1 million units in cumulative sales — a milestone the company described as historic.

 

Bajaj Auto said in its annual report that monthly exports surpassed 200,000 units in October 2025 for the first time in 39 months. Its Pulsar and CT ranges also recorded their highest-ever annual export volumes.

 

The three companies, however, struck a more measured tone on the year ahead.

 

Hero MotoCorp, in its annual report, said the Indian two-wheeler industry had entered FY27 “on an optimistic footing”, supported by improving affordability, better rural conditions, stronger urban sentiment and continued premiumisation. It identified inflationary pressures, geopolitical volatility and commodity-related risks as key watchpoints.

 

The company has earmarked ₹1,500 crore in capital expenditure for FY27 to double its electric vehicle capacity and expand production of internal-combustion-engine scooters and premium motorcycles. It also expects its Brazil operations to commence commercial production during the year.

 

Sudarshan Venu, chairman and managing director of TVS Motor, said in the company’s annual report that demand for two- and three-wheelers in India during FY27 was expected to “broadly track the previous year’s performance”. He cited the company’s diversified product portfolio, multi-sourced supply chain and cost discipline as factors that would support its performance.

 

Venu said TVS remained “cautiously optimistic”, with India’s gross domestic product expected to grow by more than 6 per cent in FY27.

 

Rajiv Bajaj, managing director and chief executive officer of Bajaj Auto, was more circumspect in the company’s annual report.

 

“As we look ahead to FY2027, the external environment remains volatile, uncertain and complex,” he said, pointing to geopolitical developments, commodity inflation and supply-chain disruptions.

 

Bajaj Auto nevertheless described the opportunities before it as “very significant”. Its priorities for FY27 include strengthening its competitiveness in the 125cc-and-above motorcycle segment, increasing Chetak’s share of the electric two-wheeler market, sustaining export momentum and continuing the turnaround at KTM AG.

 

Taken together, the annual reports indicate that while manufacturers expect domestic demand to remain supportive, exports and premium products will be important growth drivers in FY27. Geopolitical uncertainty, input-cost pressures and changing trade dynamics, however, are keeping them cautious about the pace of expansion.