India's electric two-wheeler roadmap is ambitious, but not insurmountable

AT FIRST GLANCE, the prospect of Indian electric two-wheeler (E2W) makers conquering global markets may seem ambitious. Yet, history suggests otherwise. Our two-wheelers have seen an impressive journey in the global internal combustion engine (ICE) segment. From local to global At the turn of the millennium, Indian two-wheelers had a negligible global presence. Exports were at barely 100,000 units in 2000. Two decades later, this has surged 40-fold to 4.2 million units across 120 countries and accounts for nearly 20% market share among emerging economies. Three-wheelers, too, have risen nearly 30 times, spanning more than 50 countries. Companies such as ours spearheaded this transformation and continue to dominate India’s global mobility drive. In the three-wheeler segment, Bajaj Auto has developed a use case for most of these countries, demonstrating product strength and business development capabilities in distant markets such as Mexico, Peru, Congo, and the Philippines. Crucially, this success has not come at the cost of profitability. Indian makers have competed against low-priced Chinese players and premium Japanese heritage brands, while maintaining financial discipline. Perhaps more striking is the ubiquity of Indian two-wheeler networks overseas. From Africa to Latin America, they have established a robust market ecosystem that few branded products from other segments can boast of. Engines of success The following five capabilities have driven Indian two-wheelers’ rise into a global benchmark of competitiveness and adaptability: 1. Product competence: Indian companies cut their teeth in the demanding domestic market, where customers insist on uncompromising value, performance, service, and experience, eventually creating globally competitive offerings. Add to it a strong supply of engineering talent. 2. Scale and supply chains: India is the world’s largest two-wheeler market. Domestic scale has driven efficiencies, enabling manufacturers to build robust supply chains that deliver cost and quality — a formula that translates seamlessly to international markets. 3. Shifting axes of consumption: As two-wheeler demand shifted from advanced to emerging markets, consumer needs aligned with Indian offerings. Products engineered for India’s roads, climates, and usage patterns naturally suited countries in Africa, Latin America, and parts of Asia, where they are a “tool” and less of a “toy”. 4. Collaboration: Indian brands did not only export; they embedded themselves in overseas markets, investing in dealer networks, local partnerships, and after-sales services. The customised go-to-market approaches gave their value proposition a persuasive, universal appeal. 5. Ownership and ambition: Long-term commitment is what separates a trading effort from an industrial one. It is easy to “check in to a country” but difficult to check out without compromising the long-term brand reputation. Bajaj’s overseas business is not just “nice to have”, it is a strategic business unit delivering over 40% of the top line. The electric transition The E2W industry is in a nascent stage, with volumes under a million units outside India. Growth drivers are well-known: lower operating costs, convenience, supportive regulation, and environmental imperatives. Yet, as the category matures, customer decision-making will likely mirror ICE — balancing considerations of performance, value, brand, trust, and after-sales support. This is where Indian manufacturers are well placed with networks, brand equity, and channel platforms. The same playbook that drove the ICE success — scale, supply chain competitiveness, and product development based on deep consumer understanding and operating experience — can be redeployed in the electric era. However, there’s a crucial difference. In the EV world, control over key components — from advanced battery cells to power electronics — shapes competitiveness and performance. Other countries, notably China, Korea, and Japan, hold significant advantages in these building blocks, through the availability of raw materials and scale. To become a global leader, India must avoid two pitfalls: isolationism and imbalanced trade strategies. The sector cannot pursue promotion of exports while constraining imports, particularly of critical components. India should embrace a collaborative approach: harnessing global pockets of competitive capability, integrating them into its platforms, and delivering holistic solutions under Indian brands. This is not alien to our manufacturers, though. Their earlier success in ICE vehicles was not built in isolation but by intelligently blending local strengths with global technologies. As scale builds, the Indian supply chain has demonstrated the capability to be globally competitive, which over time will drive imports towards upstream raw materials rather than manufactured components. The same strategy can be unlocked in the EV age. The journey from 100,000 to 4.2 million units in exports is testimony to the resilience, adaptability, and strong customer orientation of the auto makers. If these same capabilities, combined with self-confidence, ambition, and strategic collaboration in global EV supply chains, are applied, Indian E2Ws can conquer the global markets. (Views are personal.)

India's electric two-wheeler roadmap is ambitious, but not insurmountable

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