Rajiv Bajaj, Managing Director at Bajaj Auto, feels August performance should be similar to July or could be tad better than June as the festival season kick-starts
Bajaj Auto reported healthy set of sales data for July, in line with Nomura's expectations. The two-and-three-wheeler maker sold 3.1 lakh units, a growth of 30 percent over the same period last year. The brokerage had estimated sales of around 3.97 lakh units for the month.
Domestic sales grew 27 percent year-on-year to 2.37 lakh units. Exports increased 34 percent to 1.63 lakh units, the company said in an exchange filing.
The motorcycle segment reported a 25 percent sales growth to 3.32 lakh units. The 3W division saw its highest ever monthly sales at 67,663 units, a growth of 59 percent over the year-ago month.
The company's year-to-date performance (FY19) also remained strong as total sales grew 36 percent to 16.26 lakh units, backed by domestic sales and export growth of 39 percent and 32 percent, respectively. Motorcycles sales increased 31 percent and 3W shot up 70 percent in the same period.
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Rajiv Bajaj, Managing Director at Bajaj Auto, feels August performance should be similar to July or could be tad better than June as the festival season kick-starts. "We are looking at a growth of around 25 percent in the commuter space in August. Momentum for the 3W space would continue," Bajaj said in an interview to CNBC-TV18.
He expects growth to pick-up from September for the next three months till November due to festive season demand. "Monthly sales of 4 lakh looks sustainable but the demand push can take it to 4.5 lakh units per month."
In the case of exports, he sees 35 percent growth in August, subject to production, Maratha morcha, etc.
Bajaj Auto increased prices in July and is looking to increase the same in September. "We have been pushing prices. Recently, I heard news reports that Hero MotoCorp too is looking at raising prices. It looks like a price war but it is definitely not a war."
Competition from Harley Davidson doesn't perturb Bajaj much and is not worried about competition rising in the 250cc segment.
He reiterated that Bajaj Auto is not going to change its strategy due to competition. "The success of Bajaj Auto and KTM prompted TVS Motor to partner with BMW for bikes. So, we will stick to our strategy."
At 11 am, the stock price was quoting Rs 2,736.25, up Rs 36.20, or 1.34 percent on the NSE.