Source - Business Standard

Bajaj Auto Limited posted a record turnover in its quarterly results announced. As the country’s second largest two wheeler maker, Pune based BAL is looking at growing business not merely from increasing volumes, its managing director Mr Rajiv Bajaj tells Sharmistha Mukherjee.

Q - Sales in the domestic motorcycle market grew by 17.42 per cent till September this financial year. Bajaj Auto motorcycle sales have grown by around nine per cent in this period. Is it a deliberate strategy to focus on exports?

A - There are two reasons why our sales growth seems to have been moderate. Last year, up until November Hero MotoCorp, which is the largest player in the segment, had capacity constraints. After those were resolved, from December onwards they were able to produce and therefore sell more. So, between April and November, BAL apparently gained market share. Now it looks like we have lost it. It is not a question of market share, but of the individual companies’ capacity.

Secondly, we are not trying to reduce our dependence on the domestic market, but on the lower-end of the domestic motorcycle market. The motorcycle segment is growing unlike passenger cars. But the rate is still lower than last year. Some companies are trying to push sales through promotions and discounts. Our strategy is to sell as much of Pulsar and Discover as we can. We will not reduce price to increase volumes. We may have lower growth, but we will maintain profitability. Our second-quarter Ebitda margins have grown to 20.1 per cent. It is best in the industry.

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