India–EU trade pact opens export window for Indian two-wheeler makers

India’s two-wheeler industry could see new export momentum following the conclusion of the India–EU free trade agreement, with manufacturers and analysts pointing to improved market access and lower trade barriers.

Industry response to the India–EU trade pact

Hero MotoCorp CEO Harshavardhan Chitale said the agreement goes beyond trade benefits and reflects a broader strategic alignment between India and the European Union.

“This agreement will unlock opportunities for the two-wheeler industry to expand their footprint and support 'Make in India' products to the European markets," he said.

Chitale added that the pact is expected to enhance regulatory cooperation and support research and development, innovation, and closer integration with global value chains.

TVS Motor sees long-term structural impact

TVS Motor Company Chairman Sudarshan Venu echoed similar views, highlighting the broader impact of large trade agreements on industry operations.

“Agreements of this scale don't just reduce tariffs, they transform business environments, strengthen supply-chain resilience, and open pathways for innovation-led Indian manufacturers to compete on the global stage," he said.

He added, “As a global two-wheeler company, with the TVS and Norton brands, we're focused on identifying and pursuing the opportunities it will create for Indian industry in Europe and beyond."

From an industry perspective, analysts see potential gains for select manufacturers. According to BNP Paribas India analyst Kumar Rakesh, Royal Enfield could benefit from reduced European import duties under the agreement.

Rakesh noted that the EMEA region accounted for 26 per cent of Royal Enfield’s exports in FY25, but represented only 3 per cent of the company’s overall volumes. He also pointed out that exports to the EU currently make up around 1 per cent of India’s total two-wheeler exports, underlining the scope for growth if trade conditions improve.

(With inputs from PTI)

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