Indian bike makers rev up their Latin America push

Homegrown two-wheeler makers are sharpening their focus on Latin America as the region extends its lead over African markets, with Colombia emerging as the largest export destination for Indian motorcycles and scooters.

This marks the fourth consecutive year that a Latin American country has claimed the top spot, cementing the region as a top priority for two-wheeler makers who have historically banked on Africa for their exports.

Hero MotoCorp, Bajaj Auto, TVS Motor Company and Royal Enfield are all scaling investments in Latin America with new factories, broader product portfolios and deeper presence in Brazil, Mexico, and Colombia. The region is emerging as a second growth engine for the companies as the focus on electric mobility disrupts traditional markets in Africa,

Two main reasons are driving this move. In Latin America, motorcycles are increasingly being used as income-generating assets for delivery, courier and mototaxi services, creating demand for commercial and utility-oriented models.

Meanwhile, in Africa, which has long been the main market for Indian two-wheelers, an early wave of electric bikes led by companies like Spiro could leave petrol-bike makers behind.

Bajaj, in its latest earnings call, indicated plans to enter new product segments in the region, while KTM has opened a dedicated 20,000 unit plant in Manaus, Brazil, alongside Bajaj Auto’s existing facility. Hero has identified Brazil and Mexico as key growth markets, while TVS has attributed its recent export performance partly to stronger demand in Latin America.

“We are setting up a manufacturing facility in Brazil. And we also have a good portfolio of flex-fuel vehicles, which is what is needed for that market,” chief executive Harshavardhan Chitale said on the company’s 29 October earnings call. “So that's a big market we are expanding in. We are also increasing our presence in Mexico. So both these are large Latin American markets when it comes to 2-wheelers.”

Hero's board has approved an additional investment of up to ₹300 crore in its wholly owned Netherlands subsidiary, which will route the funds to its subsidiaries in Colombia and Brazil.

Hero’s Colombia subsidiary reported a turnover of ₹1,656 crore in FY26, up from ₹672 crore a year earlier, while its Brazil subsidiary is yet to commence business, according to the filing.

Colombia accounts for close to a quarter of Hero’s exports, with Bangladesh contributing a similarly high share, leaving the company exposed when both markets faced disruptions in the September quarter.

Bajaj Auto is looking to deepen its product offering beyond its traditional markets.

In its 27 October earnings call, joint managing director Rakesh Sharma said the company plans to open a new segment in existing markets, particularly outside Africa, which could be a “surprise package”. He also said Bajaj would add new markets over the next two to three years.

“In Latin America, including Brazil, the industry grew about 12%, while we grew 44%,” Sharma said. Bajaj’s exports in the 150cc and above sports segment in Latin America rose 50%, making it the leader in the 150-250cc category.

Bajaj’s Manaus plant, operational since 2024, has an annual capacity of 50,000 units, according to its FY26 annual report. Separately, Bajaj-owned Austrian bikemaker KTM opened a dedicated plant in Manaus in October, with an installed capacity of 20,000 motorcycles a year.

The facility will assemble 10 KTM and Husqvarna models across motocross, enduro and adventure segments, with production expected to reach 3,500 units by the end of 2026.

TVS Motor has also flagged Latin America as a key export market. Its international two wheeler sales rose 33% in the September quarter, ahead of the industry’s 27% growth.

"Africa continues to be a key driver, supported by other markets like LATAM, also Asia,” chief executive K.N. Radhakrishnan said on the October 28 earnings call.

Royal Enfield is taking a more localized route in Brazil. In July, the company said it would set up its own completely knocked down (CKD) assembly facility in Manaus from 2027. The move builds on its existing assembly partnerships in Brazil, its largest overseas market.

Latin America's opportunity

Experts say that the push is underpinned by rising demand across Latin America, where motorcycles are increasingly being used as income-generating assets for delivery, courier and mototaxi work.

“Across Latin America, growth is being driven by the motorcycle's shift from discretionary purchase to income generating asset, with delivery, mototaxi and courier work anchoring demand, aided by macro normalization through disinflation, rate easing and real income gains that have restored affordability. Deepening dealer point and in house financing has converted that affordability into volume,” analyst at Kotak Institutional Equities wrote in a 15 September report.

Colombia has become the largest export market for Indian two-wheeler makers, accounting for 14-14.5% of overall exports in FY26 and the first quarter of FY27, the report said.

India's two-wheeler exports grew 23% to 5.19 million units in FY26,

Kotak expects growth to moderate to mid-single digits in Colombia and mid-to-high single digits in Brazil, while Mexico could grow at a low-single-digit pace this year.

Latin America offers a second growth engine as Indian manufacturers need to diversify their export markets amid Africa nations' push for electrification. The transition is gaining traction Uganda, Rwanda and Kenya, where companies such as Spiro have expanded their battery-swapping networks, backed in part by Chinese manufacturers.

Kotak expects Africa’s two-wheeler market to grow at a high-single-digit pace, but estimates its electric segment could expand at a 34.7% compound annual growth rate, driven by high daily usage and rising fuel costs.

It also warned that battery-swap operators could control the customer relationship, leaving manufacturers as hardware suppliers. A stronger Latin American presence could help Bajaj and TVS spread their exposure as demand in Africa shifts in a segment where they are currently not present, Kotak added.