India Beat China And Japan In Africa: How We Did It [Video]

In the early 2000s, African countries began to prosper economically and in the process began to consume more goods. While cars were and still are a luxury in this part of the world, two wheelers bridge the gap, serving both as people and goods carriers. Sensing this opportunity, two wheeler makers from Japan, China and India made a beeline for Africa. Here is what happened next.

As the video indicates, India was slow to the market as they Chinese and Japanese had already taken a lead. While Japanese motorcycles came with their high quality parts, finish and build, they were too expensive for the African market. So, the Chinese, with the ultra low cost petrol two wheelers – mainly four stroke – managed to simply edge out Japan and become a dominant force in Africa.

However, the Chinese didn’t focus on quality, and simply though that selling bikes really cheap was enough to sustain in Africa. They simply exported the ‘use and throw’ model into Africa – stuff that China was famous for in the early 2000s. However, two wheelers are still pricey for the average African, who expects them to last for years, if not decades.

The super cheap Chinese motorcycles just couldn’t last in the challenging conditions of Africa, where dust, no roads and poor fuel quality were the norms rather than exceptions. So, Chinese motorcycles began breaking down, and when this happened, the Chinese companies who sold them to Africans realized their next big mistake.

Assuming that the cheap motorcycles would be bought in the ‘use and throw’ model, the Chinese hadn’t really thought of setting up service centers. After the Chinese motorcycles began failing, angry Africans simply started dumping them after realizing that there was no way to fix them as there was neither service nor spares.

Enter India. Enter Bajaj and TVS

Bajaj Auto and TVS Motors have operated in India for decades, and India is one of the most demanding markets in the world. Bajaj and TVS figured that they could easily replicate their Indian success models in Africa if they could simply set up good after sales support for their high quality, long lasting motorcycles.

And they simply went about not only selling sturdy, long lasting motorcycles but also setting up a reliable after sales network that dispensed not only service but also spares. Bajaj and TVS Motors even trained local mechanics to make service more accessible for Africans, and also supplied them with spares.

This not only provided employment to local African youth but also turned them into entrepreneurs who ran independent garages that could service Indian motorcycles. These mechanics became loyal to the Indian brands because they provided them both livelihood as well as high quality, long lasting motorcycles that went the distance.

Like India, most parts of Africa is still poor, and fuel efficiency is often the second most important aspect aspect from reliability. After successfully producing very fuel efficient motorcycles for India such as thee Bajaj Boxer and TVS Star City, Bajaj and TVS Motors simply took these motorcycles to the African market, but with a key difference.

Built for Africa!

These motorcycles were customized for African conditions. For instance, the Bajaj Boxer sold in African got much stiffer suspension that made it sturdy enough to carry not one, not two but even four adults, and then some load too.

A similar model was adopted by TVS Motors too, who added luggage racks, longer seats and stiffer suspension to the Star City commuter motorcycle to make it Africa-ready. The Chinese didn’t stand a chance against such focused products from India, and the Japanese simply couldn’t compete with India in cost terms.

Both Bajaj and TVS have even introduced three wheelers (autorickshaws) – transport solutions that have become huge hits in Africa because of their cost-effectiveness and practicality. In many ways, African towns and cities seem similar to Indian towns and cities – chaotic, with poor roads, and poor public transport. In other words, the perfect place for autorickshaws to thrive.

Africa assembly!

The Indians – Bajaj and TVS – had another trick up their sleeve. To give their business in Africa a massive moat, they began setting up assembly units in African countries such as Kenya, Nigeria and Tanzania, both of which had reasonably adequate infrastructure, peaceful conditions and a willing workforce.

Once this happened, motorcycles from Bajaj and TVS Motors became even more cost competitive, outpricing the Chinese, whose labour back in China was getting a lot more expensive thanks to general economic prosperity in that part of the world. The Chinese simply gave up.

Electric revolution and Africa

Then there was another factor too, that led to the Chinese giving up. Electrification. The Chinese government embarked on an aggressive electrification drive across the country, seeking to make two wheelers 100 % electric as they didn’t want to import petrol. Once this happened, Chinese factories began producing more of electric two wheelers than petrol powered ones.

However, they couldn’t sell these electric vehicles in Africa as most parts of that continent still suffered from long power outages. Electric vehicles – especially two wheelers – just didn’t make sense of the Africans, who were now quite wary about the Chinese given their previous poor experience with petrol powered Chinese motorcycles.

So, Bajaj Auto and TVS Motors are now a dominant force in the African two wheeler market, holding nearly 50 % market share between themselves. And they have plans to further grow the market.

An Indian electric vehicle start-up called One Electric Motorcycles, sensing an opportunity and goodwill for Indian products, has now begun assembling electric two wheelers in that part of the world. In future, as electric vehicles become more popular, Indian two wheeler giants TVS Motors and Bajaj Auto are well placed to cater to the demand, at least in urban pockets of Africa.

While Bajaj has the reliable Chetak Electric Scooter, TVS Motors has the best-selling iQube range of EVs. The next big spurt of growth for India could come from electric two wheelers. We hope more Indian two wheeler majors step up their game and enter Africa. The goodwill is already there, and we already have high quality products. Going to Africa and figuring out local business practices and sensibilities are the only things left. Bajaj and TVS have shown the path. It’s up to the rest of the Indian two wheeler makers to take note, and deliver.