Bajaj Auto Sees Turnaround From Initially Weak Festive Season With 'Heathy Growth' Ahead
A stable economic backdrop, advancing penetration of retail finance, and decent monsoon have contributed to positive sales, Bajaj Auto Executive Director Rakesh Sharma said.
Bajaj Auto Ltd. recorded a turnaround from the initially weak festive demand to end positively after it surprised the market by trimming its outlook earlier. The industry is expected to grow at 8% in the next few months, according to its top executive.
The first half of the festive season was slightly muted but turned out to be better in the second half, Rakesh Sharma, executive director of Bajaj Auto, told NDTV Profit on Friday. "Overall, it was a good festive season and our area of focus is the upper half of the industry which drove the industry."
Bajaj Auto recorded its highest-ever festive volume of 2.7 lakh in Pulsar—the flagship brand in the upper half of the industry—with the three-wheeler segment doing "exceedingly well", according to Sharma. "All the business units had a very good season." In the next few months, the industry should grow by 8% which is a "very healthy growth," he said.
The pulsar maker earlier trimmed its growth outlook for the two-wheeler industry in the middle of a festive season—much to the surprise of analysts and dealers alike. Sharma earlier said that the industry is likely to moderate to 5% in fiscal 2025 from 5–8% predicted earlier, dragged by a weaker-than-expected festive season demand.
A stable economic backdrop, advancing penetration of retail finance, and decent monsoon have contributed to positive sales, according to the executive director.
Export growth for the company was recorded at 9% during the season, with the third quarter expected to perform better than the second quarter, Sharma said. Further, the final quarter of this fiscal will see a 10% growth from the quarter ending December.
Even though regions of Africa have been showing month-on-month improvement, the situation remains fragile because of the macroeconomic conditions, he said.
The executive director welcomed fresh competition in the industry adding that it is difficult for few companies to create a new market. Two to three new companies with good technology and products is positive for the market, he said.
