Indian motorcycle exports to Rwanda rise by 850% since 2008 – says study

{{A recent Standard Bank report authored by its analysts Simon Freemantle and Jeremy Stevens revealed that Indian motorcycle exports to Rwanda rise by 850% since 2008
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“These motorcycles have become indispensible components of urban and rural transport across some of Africa’s fast-growing and still poorly connected (in terms of physical infrastructure) economies,” says the report. “As such, Indian motorcycle exports have increased by 175% to Africa since 2008, with the most pronounced ascent in Egypt (850%), Rwanda (870%); and Sierra Leone and Djibouti (both over 1,000%).”

According to Standard Bank’s research, Indian-based Bajaj Auto – the world’s fourth largest manufacturer of motorcycles and auto rickshaws – exports to 35 African countries. As at June 2012, Africa accounted for over 40% of Bajaj’s total overseas shipments

Last year, 48% (or US$204m) of India’s total motorcycle exports to the continent went to Nigeria, followed by Angola ($59m) and Uganda ($31m).

The report notes that the growing focus on Africa for Indian vehicle manufacturers is partly to offset lower demand in its domestic market. India’s domestic vehicle market dropped 6.7% to 1.89m units in 2012-2013, after expanding in 2009-2011

A decade ago India was Africa’s 12th largest source of vehicle imports; by 2012 it had moved to sixth position, ahead of France and the UK.

Indian companies such as Tata Motors and Mahindra & Mahindra have grown their presence in Africa from their bases in South Africa. Tata has become one of the continent’s fastest growing passenger vehicle manufacturers and it also claims to be the third largest player in South Africa’s commercial vehicles market.

Mahindra’s growth has largely been centred on pick-up trucks.

Maruti Suzuki, India’s largest vehicle manufacturer by volume is also looking to grow its exports to Africa. The continent already absorbs 30% of the company’s car exports