Hero, TVS and Bajaj outshine carmakers with record profit growth amid West Asia blues

Hero MotoCorp, TVS Motor and Bajaj Auto dominated India’s automotive sector in the September quarter, achieving record profit growth that starkly contrasted with the muted performance of leading carmakers such as Maruti Suzuki and Hyundai Motor India. The three two‑wheeler giants posted earnings that exceeded analysts’ expectations, underscoring the sector’s resilience amid a backdrop of geopolitical turbulence in West Asia and a volatile global supply chain.Hero MotoCorp, the world’s largest motorcycle manufacturer by volume, reported a 27.5 per cent rise in profit to ₹5,980 crore, driven largely by a sharp increase in overseas sales. The company’s export revenue jumped 34 per cent year‑on‑year, with India’s largest export markets in the Middle East and Southeast Asia recording higher demand for premium scooter models..

The company’s management attributed the margin expansion to a combination of higher average selling prices and a disciplined cost‑control regime that curtailed the impact of raw material price volatility.TVS Motor’s profit climbed 24.2 per cent to ₹3,890 crore, buoyed by a resurgence in domestic demand for its “G” series and the launch of a new electric scooter that captured early market interest. The company also benefited from a 12 per cent increase in sales volume, propelled by aggressive after‑sales service programmes and a wider dealer network expansion in Tier‑2 and Tier‑3 cities. TVS highlighted that its focus on product innovation, coupled with strategic pricing, helped maintain a healthy gross margin despite rising input costs.Bajaj Auto, a veteran in the motorcycle and three‑wheelers niche, posted a 28.7 per cent profit jump to ₹2,570 crore..

Its growth story was underpinned by a robust export push, with the company securing new contracts in the Gulf Cooperation Council (GCC) states. The export growth was further supported by a favourable currency environment that helped offset the impact of a sharp rupee depreciation. Meanwhile, domestically, Bajaj’s sales of three‑wheelers—particularly the BEECH 4WD and the BEECH 4X4 models—remained steady, reflecting strong demand from the logistics and rural transport sectors.In contrast, Maruti Suzuki and Hyundai Motor India, the dominant players in the car segment, reported profit declines that reflected a broader squeeze on vehicle manufacturers..

Maruti’s profit fell 9.4 per cent to ₹13,120 crore, as the company grappled with a 6.2 per cent drop in domestic sales and a 3.8 per cent decline in the export market. The company cited a combination of sluggish domestic demand, increased competition from premium brands, and an uptick in the cost of raw materials such as steel and aluminum.Hyundai Motor India’s profit dipped 6.8 per cent to ₹10,250 crore, a figure that mirrored the company’s broader revenue decline of 5.5 per cent. The carmaker faced challenges stemming from a tighter credit environment for consumers, which dampened demand for higher‑priced models..

Additionally, the company reported a 4.3 per cent increase in component costs, reflecting the escalating prices of key automotive parts sourced from overseas suppliers.The divergence between the two‑wheeler and car segments can be traced back to a shift in consumer preference that favours flexible, low‑cost mobility solutions. Urban commuters, in particular, have increasingly turned to scooters and motorcycles for their affordability, manoeuvrability and lower maintenance costs. The trend has been amplified by the pandemic‑induced lockdowns, which accelerated the adoption of two‑wheelers as a first‑time purchase for many households.Moreover, the geopolitical turbulence in West Asia has had a differential impact on the two sectors..

While the automotive industry at large has felt the repercussions of disruptions in supply chains—particularly for high‑end components—the two‑wheeler sector has largely relied on domestic sourcing for critical inputs such as steel, castings and plastics. This domestic focus has allowed companies like Hero, TVS and Bajaj to maintain a buffer against global price swings, thereby preserving their margins.Export demand has also played a pivotal role in buoying the two‑wheeler sector. The Gulf Cooperation Council (GCC) states continue to be a major destination for Indian two‑wheelers, with rising income levels and a growing preference for personal mobility options..

The surge in exports has been further complemented by the Indian government’s initiatives to promote the “Make in India” ethos, which have facilitated smoother customs procedures and incentivised manufacturers to target overseas markets.While the carmakers have been grappling with a slow‑down in domestic sales, the two‑wheeler segment has seen a resurgence in urban markets. In Tier‑1 cities, the penetration of electric scooters and bicycles has begun to take root, offering an environmentally friendly alternative to traditional petrol‑powered vehicles. The growth in electric two‑wheelers is expected to continue, supported by a network of charging infrastructure being rolled out across key metros and the introduction of favourable tax incentives for consumers.Analysts note that the sustained profitability of the two‑wheeler segment also reflects a broader resilience in India’s manufacturing base..

Despite challenges posed by fluctuating oil prices and supply chain bottlenecks, the sector has leveraged its established expertise in modular manufacturing and just‑in‑time inventory management to keep costs in check. This operational agility has proven essential in navigating the uncertainties brought about by the ongoing global economic slowdown and the after‑effects of the coronavirus pandemic.Looking ahead, the automotive landscape in India is poised for a structural shift. The rise of the middle class, coupled with a growing emphasis on sustainable mobility, is likely to continue benefitting two‑wheeler manufacturers..

The car segment, meanwhile, will need to adapt to a changing market that increasingly favours electric vehicles and shared mobility models. Both sectors are expected to explore new technology partnerships and digital platforms to capture emerging consumer preferences and to sustain growth in a rapidly evolving marketplace.In sum, the September quarter has highlighted the divergent fortunes of India’s two‑wheeler and car manufacturers. Hero MotoCorp, TVS Motor and Bajaj Auto have outpaced their car counterparts, delivering record profit growth underpinned by robust exports, resilient domestic demand and efficient cost management..

The performance of the two‑wheeler sector serves as a bellwether for India’s broader manufacturing resilience, signalling that despite global headwinds, the country’s automotive industry remains dynamic and adaptable to emerging market realities..