Indian two-wheeler manufacturers are increasing their focus on Latin America, expanding production and broadening their product ranges in markets including Brazil, Mexico and Colombia. The shift comes as the region gains importance for companies seeking growth beyond Africa, a traditional destination for Indian motorcycle exports.
Colombia leads export destinations
Colombia became the largest export market for Indian two-wheeler makers, accounting for 14–14.5% of overall exports in the 2025–26 financial year and the first quarter of 2026–27, according to a Kotak Institutional Equities report cited in the source material. Latin America has taken the top export-market position for four consecutive years.
Demand in the region is being supported by motorcycles used for delivery, courier and mototaxi work. These uses make two-wheelers a source of income as well as personal transport, creating demand for utility-oriented models.
Manufacturers add local capacity
Bajaj Auto operates a plant in Manaus, Brazil, with annual capacity of 50,000 units, according to its 2025–26 annual report. Its Austrian subsidiary KTM opened a separate Manaus facility in October with installed capacity of 20,000 motorcycles a year. The plant is set to assemble 10 KTM and Husqvarna models spanning motocross, enduro and adventure categories, with production expected to reach 3,500 units by the end of 2026.
Royal Enfield plans to establish a completely knocked down assembly facility in Manaus from 2027, building on its existing assembly partnerships in Brazil. The company identified Brazil as its largest overseas market.
Hero MotoCorp has named Brazil and Mexico as key growth markets. Its board approved an additional investment of up to ₹300 crore in its wholly owned Netherlands subsidiary, which will channel funds to Hero’s subsidiaries in Colombia and Brazil. Hero’s Colombian subsidiary reported turnover of ₹1,656 crore in the 2025–26 financial year, compared with ₹672 crore the previous year. Its Brazilian subsidiary had not yet started business, the filing said.
Bajaj and TVS target further growth
Bajaj Auto has signalled plans to enter additional product segments in existing Latin American markets and add markets over the next two to three years. Joint managing director Rakesh Sharma said the industry in Latin America, including Brazil, grew about 12%, while Bajaj grew 44%. The company’s exports in the region’s 150cc-and-above sports segment increased 50%, and it led the 150cc–250cc category.
TVS Motor has also described Latin America as an important export market. Its international two-wheeler sales rose 33% in the September quarter, compared with 27% growth for the industry. Chief executive K.N. Radhakrishnan said Africa remained a key driver, alongside markets including Latin America and Asia.
Diversifying as African markets electrify
The expansion also reflects a changing outlook in Africa, where electric motorcycles and battery-swapping networks are gaining ground in countries including Uganda, Rwanda and Kenya. Kotak expects Africa’s two-wheeler market to grow at a high-single-digit pace, while estimating that its electric segment could expand at a 34.7% compound annual growth rate.
The research firm warned that battery-swap operators could gain control of customer relationships, potentially leaving manufacturers focused mainly on supplying vehicles. A stronger Latin American business may help companies diversify their exposure as African markets shift toward electric mobility. Kotak’s estimates point to mid-single-digit growth in Colombia and mid-to-high-single-digit growth in Brazil, with Mexico expected to record low-single-digit growth in the current year.
Image: Виктор Пинчук — Wikimedia Commons / CC BY-SA 4.0
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