• Bajaj Auto sells motorcycles in export and domestic market. Why this strategy and what are its benefits. BA is Making in India for the World for over a decade. More Indian companies need to follow Make for India and Exports. Also, suggestions for BA.

Long before PM Modi’s slogan, Make in India for India and the World, one company Bajaj Auto (BA) symbolised the slogan by exporting Made in India bikes across the world. In a way BA followed what Swami Vivekananda said decades ago. 

Swami Vivekananda said in Lectures from Colombo to Almora 250-252, “One of the greatest causes of India’s misery and downfall has been that she narrowed herself, went into a shell as the oyster does, and refused to give her jewels and treasures to the other races of mankind, refused to give the life giving truths to thirsting nations.” Awakening the Nation by Srinivas Venkatram Pg. 138 -9

Simply put, India must be outward looking and share her knowledge with the world, whilst protecting intellectual property rights. Simultaneously, it must keep track of global developments/technologies and share its innovations with the world like UPI and Covid19 vaccines. This is what BA has been doing.  

The focus of this article is on manufacturing and brands. It does not seek to undermine contribution of other sectors like I.T. services, tourism etc.   

Overall, the bulk of BA motorcycle exports come from brands - Boxer (in Africa), Pulsar and Dominar. It also exports under 400cc bikes of partner brands KTM and Triumph. BA bikes are exported to over 100 countries.

Did you know that in June 2024 BA commissioned its first company-owned overseas assembling facility in Manaus? Think of the impact it has on India’s relations with Brazil, a co-founder of BRICS, and how Brazilians perceive India.  

I start with some tables, given my love for data, followed by why is BA following this exports strategy and what are the benefits of exporting.

Table 1 – Production/Total Sales Trends 2 Wheelers for India 

Source – www.siam.in/statistics , Excludes 3 wheelers

Except for 2021-22 Export sales as a % of total sales for 2 wheelers was to 16-19%.

It was only in 2023-24 and 2024-25 that India sales units exceeded 2019-20 (pre Pandemic) sales. Also, India sales in 2024-25 were higher by 13% when compared to 2019-20.

Further, export sales units from 2021-22 onwards exceeded 2019-20 sales.  2024-25 export sales units exceeded 2019-20 by 19%.

Simply put, domestic all India sales quantities in 2024-25 grew by 13% with 2019-20 as a base while exports grew at 19%.  Exports increased total volumes. 

To ascertain the motor cycle sale quantities for Bajaj Auto, I referred to the company’s published annual reports.

Table 2 – BA Motorcycles Sales – Exports and Domestic  

FY21 and FY22 figures source Annual Report 2021-22.  For 2023-24 onwards numbers exclude electric vehicle Chetak whose sales were 116k in Fy24 and 260k in Fy 25. All numbers from Annual Report. #Not sure if this includes KTM.

How many Indian companies can claim that 41-57% of their total sales came from exports? If you include commercial vehicle and bike exports, together they were “1.86 million units and 33.7% of BA sales in Fy25.”

Table 3 Comparison BA Exports as a % of Total Sales – SIAM Industry vs. BA

Clearly, on the parameter of Exports Sales as a % of Total Sales, BA is far ahead.

Why did Bajaj Auto adopt this export strategy?

With the entry of the India Japanese joint-ventures, starting 1984, like Hero Honda, Suzuki and changing aspirations the demand for scooters was falling. Thus, Bajaj Auto stopped producing scooters in 2006 to focus on motorcycles.

According to this 2009 Business Standard report, “Giving reasons for withdrawing from scooters, Rajiv Bajaj, MD of Bajaj Auto added: “In order to become a motorcycle specialist and number one in the world, we have to make a sacrifice, of manufacturing both motorcycles and scooters.” Then, Mr Bajaj thought that the motor-cycle market was growing faster than scooters and margins in brands like Pulsar were higher than industry average. 

“Further, “For Hamara Bajaj, the big change came in the late nineties when the onslaught of the “Fill it, Forget it” Hero-Honda tilted the two wheeler market in favour of motorcycles overnight.” Economic Times

Simply put, changes in market conditions forced Bajaj to stop making scooters. Read How Hamara Bajaj abandoned its family jewel?

When Bajaj decided to enter the motor-cycle market, it wished to become a specialist and number one in the world. To achieve that goal it had to export. The goal was clear. How many Indian companies have such a goal?

Being born Marwari, Mr Bajaj was willing to take a risk but clear that his business had to make profits.

Rishi Agrawal, Co-Founder and CEO, TeamLease Regtech, Awfis Space Solutions Pvt Ltd Pune says that from childhood Marwari kids hear about, “Being Frugal, Working Hard, Thrive in undefined/uncertain environments, Making Money is a sign of success and Marwaris focus on building sustainable businesses that can be passed down to future generations.” Read why do Marwaris take to and do well in business?

More Indian companies should try to emulate this Bajaj Auto strategy.

What are the Benefits of this also Export Big strategy?

Here are some benefits not necessarily in order of priority – 

1. In a way selling in domestic and export markets de-risks the business from a sales downturn. Only if there is a one-time event like Covid19, might sales fall simultaneously.

2. When one sells in a global market, one is competing with the very best like Honda, Yamaha etc. So one has to keep abreast with technology, customer buying experience and global best practices. The exposure has a positive spin off on domestic sales.

Strategically speaking, one of the reasons for India’s falling to foreign invaders is that her rulers did not track developments abroad so developments outside India, for e.g. method of fighting, took them by surprise. 

3. Higher volumes bring in economies of scale, lower per unit overheads cost. The same fixed costs are allocated over a larger number of sale units.

4. If an Indian visits say Africa or Latin America and sees a Made in India Bajaj Pulsar on the roads, it makes him/her feel proud of the brand. That pride is bound to spinoff positively on Brand Bajaj in Bharat. 

5. A search states, “Exports also enhance brand recognition, offer currency diversification, allow for production optimization and economies of scale, and foster innovation and skill growth.”

TVS and Maruti Suzuki are large exporters. Leave their stories for another day.

A friend who returned from Kenya said there Bajaj 3 wheelers are called BAJAJIA.

Thanks to companies like Bajaj Auto the threat of Chinese motorcycles hitting the Indian market hardly exists. 

I wish Bajaj Auto documents and shares it learnings with a larger group of Indians with suggestions on how the Indian Embassies can help all exporters. 

Hope BA opens a Bike Assembly unit in Africa soon. If the unit is in a country with stocks of rare earths or lithium, the unit could aid India’s foreign policy. Also hope, it exports 3 wheelers to Afghanistan, a country that helps India gain strategic depth.  

References and Also read

1. Bajaj Auto Annual Reports for last 5 years.

2. Business Standard report on BA best selling brands internationally  

3. Top Benefits for Pharma Exports from India

4. Benefits of Import and Export from India

5. Top 7 Benefits of Exporting

Utmost care taken in culling out data. Errors, if any, are inadvertent and without malafide intent. Cover pictures taken from Bajaj Auto site and Rushlane.com