India’s Motorcycle Parts Exports Surge, Imports Decline Due to PLI Scheme

Team Finance Saathi

    19/Mar/2025

What's Covered Under the Article:

  • India’s motorcycle parts exports grew 27.09% due to the PLI scheme.
  • Imports dropped 30.4% as domestic manufacturing strengthened.
  • Major export destinations include the US, Germany, and Turkey.

India’s motorcycle parts exports have seen significant growth over the past three years, primarily due to the government’s Production-Linked Incentive (PLI) scheme, which has bolstered domestic manufacturing and improved India’s standing in the global supply chain. According to data released by the Ministry of Commerce, exports of motorcycle parts and accessories increased from Rs. 4,833.27 crore (US$ 558.05 million) in April-January of FY22 to Rs. 6,142.55 crore (US$ 709.22 million) in the corresponding period of FY25, reflecting a 27.09% growth. This remarkable growth highlights India’s strengthening competitiveness against other major suppliers such as China and Thailand.

Decline in Imports Reflects Strengthened Domestic Production

Simultaneously, imports of motorcycle parts have witnessed a sharp decline, indicating a stronger reliance on domestic production. Import values dropped from Rs. 4,281.91 crore (US$ 494.39 million) in FY22 to Rs. 2,978 crore (US$ 343.84 million) in FY24, representing a 30.4% decrease. This shift signifies the growing capacity of India’s domestic manufacturers to meet rising demand, thereby reducing dependency on imports and contributing to the country’s goal of self-reliance in the automotive sector.

Overall Growth in Auto Component Exports

India’s auto component exports, including motorcycle parts, rose from Rs. 59,588 crore (US$ 6.88 billion) in FY22 to Rs. 66,690 crore (US$ 7.70 billion) in FY24, reflecting India’s increasing footprint in global supply chains. Key export markets include:

  • United States
  • Turkey
  • Germany
  • Mexico
  • Brazil

This rise in exports underscores India’s ability to cater to both developed and developing economies, boosting the country's position as a reliable supplier of high-quality auto components.

Role of the PLI Scheme in Strengthening the Sector

Launched on September 15, 2021, the PLI scheme for the auto and auto component sector, with a budget of Rs. 25,938 crore (US$ 2.99 billion) for five years (until FY27), aims to:

  • Enhance domestic manufacturing capabilities.
  • Attract large-scale investments in the auto sector.
  • Reduce import dependence by encouraging local production.

The scheme has incentivized domestic manufacturers to increase capacity, modernize operations, and adopt innovative technologies, enabling them to compete effectively in the global market.

Surge in Exports of Motorcycle Parts

India’s focus on motorcycle parts and accessories has paid off, with export growth accelerating due to enhanced production capacity and superior quality standards. The 27.09% growth from FY22 to FY25 highlights India’s increasing role in the global supply chain, where its products are competing with offerings from China, Thailand, and other Asian countries.

In FY24, India’s exports of motorcycle parts reached Rs. 6,421.79 crore (US$ 741.46 million), marking a 13.5% increase compared to FY23’s Rs. 5,658.23 crore (US$ 653.30 million). This sustained growth reflects a deeper integration of Indian manufacturers into global markets.

Key Export Destinations for Indian Motorcycle Parts

India’s motorcycle parts exports have been directed toward both developed and developing economies, expanding the country’s global footprint. Major export destinations include:

  • Bangladesh
  • Germany
  • United States
  • United Kingdom
  • Indonesia
  • UAE
  • Brazil
  • Turkey
  • Thailand
  • Sri Lanka
  • Italy
  • Egypt
  • Colombia
  • Congo
  • Guinea
  • Vietnam
  • China

India’s ability to tap into such diverse markets is a testament to its increasing competitiveness, adherence to global quality standards, and ability to meet varied customer requirements across the world.

Drop in Imports Strengthens Self-Reliance

India’s efforts to reduce import dependence have borne fruit, with motorcycle parts imports witnessing a significant decline of 30.4% over three years. The reduction from Rs. 4,281.91 crore (US$ 494.39 million) in FY22 to Rs. 2,978 crore (US$ 343.84 million) in FY24 indicates a growing self-reliance in manufacturing.

This decline in imports is driven by:

  • Increased domestic production capacity of high-quality motorcycle parts.
  • Improved technological capabilities in the domestic sector.
  • Government support through policy reforms such as the PLI scheme.

Impact on India’s Auto Sector and Economy

The growth in exports and reduction in imports of motorcycle parts have had a positive impact on India’s economy, contributing to:

  • Higher foreign exchange earnings from increased exports.
  • Strengthening of the domestic manufacturing sector.
  • Job creation and skill development across the supply chain.

The success of the PLI scheme in driving growth in the motorcycle parts sector also sets a precedent for similar initiatives in other industrial sectors, furthering India’s economic growth and self-reliance objectives.

Future Prospects: Sustaining Growth and Competitiveness

As India continues to expand its manufacturing capabilities and optimize supply chain efficiency, the future looks promising for its motorcycle parts export sector. Moving forward, key areas of focus will include:

  • Diversifying product offerings to meet evolving global demand.
  • Enhancing R&D and innovation to stay ahead of the competition.
  • Expanding presence in new and emerging markets.

The sustained success of India’s motorcycle parts exports will play a pivotal role in achieving the government’s vision of transforming India into a global manufacturing hub.

Conclusion

India’s motorcycle parts exports have experienced phenomenal growth over the past three years, driven by the PLI scheme and a stronger domestic manufacturing base. The simultaneous decline in imports highlights India’s increasing self-reliance and competitive edge in the global supply chain. As India advances its position in the auto components sector, the growth trajectory signals a bright future, where the country will continue to strengthen its global presence and drive sustainable economic growth.


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