Bike makers' competition spills across borders

Lanka emerges as major export destination; Africa, South America also in fray

The competition among domestic two-wheeler manufacturers is no longer confined to Indian shores.

It has spilled over to other South Asian countries such as Sri Lanka and Bangladesh and a few other nations in South America, Africa and West Asia.

Sri Lanka has especially become a favourite of Indian two-wheeler manufacturers with all of the big names exporting a significant number of their vehicles to the island nation.

Bajaj Auto is the market leader with over 40 per cent of its exports sent to Sri Lanka. TVS Motors exports its vehicles to over 30 countries, while Hero Honda is in the fray as well.

"Sri Lanka is a natural market for Indian automobile makers since there are no fundamental differences in the vehicular requirements of the two countries," said Arun Firodia, chairman, Kinetic Engineering, whose company's export share in the Asian market is around 50 per cent.

Two-wheelers with an engine capacity of around 100 to 125 cc generate maximum sales in the country, say automobile manufacturers. Bajaj Auto's CT 100 and Victor GX, Hero Honda's Passion and Splendor are reportedly leading the market in Sri Lanka.

Industry sources say the arrival of Chinese automobile manufacturers broke the monopoly of Japanese models and paved the way for Indian-made motorcycles.

Indian two-wheelers, whose quality is better than Chinese motorcycles but priced lower than Japanese models could even start monopolising the market in a couple of years, they add.

In the three-wheeler segment, Bajaj is once again the market leader capturing around 90 per cent of the Sri Lankan market leaving its Italian competitor Piaggio far behind.

With an absence of local players in the market exports are expected to witness a major upsurge in the coming few months.