India–EU FTA likely to boost two-wheeler exports and premium segment: TVS Chairman

The conclusion of the India–EU Free Trade Agreement (FTA) is expected to create new growth opportunities for Indian automobile companies, especially in exports and premium motorcycles.

According to Sudarshan Venu, Chairman of TVS Motor Company, the agreement strengthens India’s position as a global manufacturing hub and opens access to one of the world’s largest trading blocs.

Venu said the trade pact will help Indian manufacturers reach more global markets and support job creation and economic growth. “India is the fastest growing large economy in the world, and it’s such an exciting place to be in,” he said, highlighting how recent trade agreements are expanding India’s export footprint.

Europe is seen as a key market, particularly for higher-capacity motorcycles. Indian companies have already started exporting larger-engine bikes to Europe through global partnerships, and the FTA is expected to further support this trend. While clarity is still awaited on exact tariff reductions on European two-wheelers entering India, Venu said the bigger opportunity lies in Indian exports to Europe rather than European imports into India.

The agreement could also benefit the auto component industry, as lower duties may encourage European manufacturers to shift more production and sourcing to India. This would help Indian suppliers become part of global motorcycle supply chains.

On company performance, TVS Motor reported strong growth in the December quarter, supported by robust domestic demand and improving exports. Venu said recent government measures, including tax relief for the middle class, have boosted consumer sentiment. “This has resulted in the two wheeler industry having its fastest growth in the last eight or nine years,” he noted.

Looking ahead, TVS Motor expects momentum to continue, driven by domestic growth, recovering African markets, and rising demand for premium motorcycles.

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