Tag: Auto sales

Hero MotoCorp to launch Xoom 125 cc and Xoom 160 cc scooters ahead of festive season

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hero MotoCorp has announced its plans to launch the Xoom 125 cc and Xoom 160 cc scooters ahead of this year’s festive season, the company said on Wednesday, May 8, while announcing its fourth quarter and full fiscal year results.

Hero Moto’s CEO  Niranjan Gupta said, “We are going to enhance our scooter portfolio by launching the Xoom 125 cc and Xoom 160 cc in the first half of the fiscal year.”

Gupta added, “The financial year 2024 has been a remarkable period for Hero MotoCorp. Our focus on product launches, network upgrades, and customer satisfaction propelled us to new heights. We have laid the foundation for accelerated growth in the future. Our financial performance has been robust, resulting in the highest ever annual revenue and profits.”

Also Read: Hero MotoCorp Q4 results: Net profit up 18.3% at ₹1,016 crore; auto major to give ₹40 final dividend

The company has seen a growth in sales, with 13.92 lakh units sold in Q4 FY24, up from 12.70 lakh units in Q4 FY23. The total volume for FY24 was 56.21 lakh units, an increase from 53.29 lakh units in FY23.

Earlier this month, the company reported sales of 533,585 motorcycles and scooters in April 2024, a significant increase of 34.7% compared to April 2023, when it sold 396,000 units. This also represents a sequential growth of 9% over March 2024, during which the company sold 490,415 units.

He further added, “We expect macro-economic factors to aid the industry’s growth. We will be driving market share gains on the back of our launches in the premium and 125 cc segments done in FY 24. The coming year will see us making significant strides in EVs, through product launches in the mid and affordable segments. Overall, we have a very positive outlook for the upcoming years.”

The launch of the Xoom 125 cc and Xoom 160 cc scooters is timed ahead of the festival season, which starts from October, with Vijayadashami on October 12, 2024, and Diwali on November 1, 2024.

Also Read: Navratri aids car and two-wheeler sales in April, but there are challenges to sustained growth

During FY24, Hero MotoCorp launched six new products in the premium motorcycle segment, including the Xtreme 125R, Xtreme 200S, Xtreme 160R 4V, Harley-Davidson X440, Karizma XMR, and the Mavrick 440. The company also upgraded its retail network with new-age Premia outlets and the launch of over 400 Hero 2.0 stores.

At Milan’s EICMA Motor Show and at its own bi-annual event, Hero World, the company unveiled its future roadmap. This included the world’s first convertible vehicle—Surge S32, new EV concepts—Lynx and Acro, flex-fuel options for its motorcycle models, and upcoming scooters—Xoom (125 & 160), new VIDA V1, and V1 Coupe.

The company also said it has expanded its mobility brand, VIDA, to over 100 cities in the country and, along with Ather Energy, expanded the charging network to more than 2,000 charging points. Hero MotoCorp also strengthened its presence in international markets, such as Nepal and Costa Rica, by appointing new distributor partners.

Also Read: India sees record petrol and diesel consumption on vehicle sales, EVs yet to catch up speed

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Navratri aids car and two-wheeler sales in April, but there are challenges to sustained growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Car sales began picking up again in April, both compared to March 2024 (3.96% rise) as well as the year-on-year i.e. April 2023 (16%), monthly data released by the Federation of Automobile Dealers Associations (FADA) showed on May 8.

Two-wheelers continued to witness growth during the month. In fact, the pace of two-wheeler sales growth was the highest among other vehicles, 7.43% month-on-month and 33.21% on a year-on-year basis.

However, three-wheelers that led growth in March witnessed a slowdown in April. Though the sales grew 9.27% on an annual basis, 23.87% fewer three-wheelers were sold last month compared to the previous month.

Tractor sales also declined 27% when compared to the corresponding month of the last fiscal whereas they increased about a percent year-on-year.

Overall, retail auto sales improved by 3.71% on a month-on-month basis in April, whereas sales saw a robust increase of 27% against April 2023, FADA data showed.

Also Read: India sees record petrol and diesel consumption on vehicle sales, EVs yet to catch up speed

“While some attribute this growth to the shift in Navratri to April instead of March last year, the overall increase was significant. Comparing combined March and April 2024 with the same period last year shows a 14% YoY growth for the entire industry,” FADA President Manish Raj Singhania said.

He explained that the two-wheeler segment saw notable growth due to improved supply and the increasing demand for 125cc models. Positive market sentiments, bolstered by stable fuel prices, a favourable monsoon outlook, festive demand and the marriage season, contributed to the rise, the report said, adding that new model launches also helped drive growth, despite some delays in supply.

The passenger vehicles or cars category experienced double-digit YoY growth, which Singhania said was supported by enhanced model availability and favourable market sentiments, particularly around festive events like Navratri and Gudi Padwa.

Also Read: Battle of the ‘Teslas’: Musk’s car giant sues Indian battery maker over trademark

However, despite strong bookings and customer flow, high competition, excess supply and discounting presented challenges for sustained growth. Also, the lack of new models in some portfolios impacted market traction.

“The commercial vehicles segment showed modest 2% YoY growth and a 0.6% MoM decline, indicating varied market conditions. Positive momentum was found in bulk and corporate deals and school bus demand, though elections dampened sentiment, with customers delaying expansion plans. Limited finance options and regional challenges such as water scarcity further impacted performance,” FADA president noted.

Reflecting on the outlook for May, FADA said the auto industry remains cautiously optimistic about market opportunities existing with rising customer interest in new models. However, election-related uncertainty and financial constraints remain key challenges that the industry will need to monitor closely to navigate this evolving landscape effectively, the auto retailers body said.

Also Read: Rajiv Bajaj pushes for GST cuts on bikes, says govt must help make motorbikes cheaper

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bajaj Auto aims to outpace industry growth with focus on higher-end segments

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bajaj Auto will maintain its lead in the domestic two-wheeler market, growing at least two to three times the industry average, particularly in the higher-end segments, according to Rakesh Sharma, the Executive Director of the company.

“The performance (in March and April together) is driven by the top half of the industry, which is growing at a slightly faster rate than the bottom half. And we are continuing to lead in the top half by a fair margin,” he said.

While sales typically slow down in May and June, Sharma says, “I think we will continue to outpace the industry, particularly in the top up by about two to three times. So I would say in the domestic business, we should again see a similar performance as in April in May.”

Bajaj Auto’s total sales in April grew 17% year-on-year (YoY) to 3.88 lakh units. Domestic sales were up 17% YoY at 2.49 lakh units, while exports grew 18% YoY at 1.39 lakh units.

The company wants to increase its market share in the higher-end market segment by introducing improved products and setting competitive prices.

“We are a tad below the leader, but I must point out that when we started the last financial year (FY24), we were 10 percentage points away from leadership in the top half. We are now 1% point away and of course; we will be thrust to ensure that we get to the number one spot in the top half,” added Sharma.

Also Read | Bajaj Auto strong Q4 show gets the company three target price hikes — Should you buy?

Bajaj Auto is all set to announce a new lineup of products starting tomorrow when it launches its biggest Pulsar.

Sharma expects the new launch to not only bring in volumes in the top segment but to boost the Pulsar brand in general.

Among export markets, Nigeria, which is significant for Bajaj with a large market share, is currently the only one that remains a concern.

“Nigeria is still struggling with finding an equilibrium on the currency side, which is having a dampening affecting on retail sales there,” Sharma noted.

Also Read | Bajaj Auto expects to grow faster than the industry as it nears entering Europe

On April 18, Bajaj Auto reported a 35% jump in its net profit over last year at ₹1,936 crore for the January-March period.

Also Read | Bajaj Auto Q4 results: Net profit jumps 35% to ₹1,936 crore; auto major declares dividend of ₹80 per share

Bajaj Auto’s market capitalisation is around ₹2,53,773.00 crore. Over the past year, its shares have risen by nearly 101%.

Automakers like Maruti Suzuki, Mahindra and Mahindra, Tata Motors, Bajaj Auto, and Hero Motocorp, along with others, share their sales numbers every month on the first day of the month.

For the entire interview, watch the accompanying video

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

April Auto Sales LIVE Updates: Bajaj Auto’s sales up 17% YoY, Mahindra sees 13% rise

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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April Auto Sales LIVE Updates: Some automobile companies reported their April sales numbers. With waiting periods in the cars or passenger vehicles segment going down, modest growth is expected in the segment. In contrast, two-wheelers are likely to have witnessed good growth on the back of marriage season, according to analysts. The truck segment shall see mid-single-digit growth, analysts indicated.

Here’s how the leading automakers in India performed in April:

Bajaj Auto

Bajaj Auto reported a rise in sales that surpasses estimates, primarily driven by a robust domestic performance. The total sales have seen a year-on-year (YoY) increase of 17%, reaching 3.88 lakh units.

The domestic sales have matched the total sales growth, with a 17% YoY increase, amounting to 2.49 lakh units. However, the company’s exports, while up by 18% YoY at 1.39 lakh units, have remained a concern as they were lower than the estimates.

Mahindra & Mahindra

Mahindra & Mahindra (M&M) reported a higher than estimated increase in sales. The total auto sales have seen a year-on-year (YoY) rise of 13%, reaching 70,471 units.

The SUV segment continues to lead the auto sales, with an 18% YoY increase, amounting to 41,008 units. This growth in the SUV segment has significantly contributed to the overall rise in auto sales. Meanwhile, the company’s tractor sales have also seen a modest YoY increase of 2%, with 37,039 units sold.

Ashok Leyland

Commercial vehicle manufacturer Ashok Leyland announced a 10% rise in total wholesale figures for April, reaching 14,271 units. This is an increase from the 12,974 units sold in the same month the previous year. The company’s domestic sales also saw a growth of 9%, with 13,446 units sold last month, compared to 12,366 units in April 2023.

In the medium and heavy commercial vehicle segment, the domestic market witnessed a 16% increase in sales. The company sold 8,611 units, a significant rise from the 7,422 units sold in the same month last year. However, the light commercial vehicle segment experienced a slight dip of 2% in sales, with 4,835 units sold, down from 4,944 units in the corresponding month the previous year.

Hero MotoCorp

Hero MotoCorp reported sales of 533,585 motorcycles and scooters in April 2024, a significant increase of 34.7% compared to April 2023, when it sold 396,000 units. This also represents a sequential growth of 9% over March 2024, during which the company sold 490,415 units.

Honda Cars India

Honda Cars India has reported a significant 42% increase in sales for April, selling 10,867 units compared to 7,676 units in the same month last year. The company’s Vice President (Marketing & Sales), Kunal Behl, attributed the lower production volumes in April to the transition of Elevate and City production to six-airbag standard variants.

In the domestic market, the automaker sold 4,351 units last month, a decrease from the 5,313 units sold in April the previous year. However, overseas sales saw a substantial increase, with 6,516 units sold compared to 2,363 units in April last year.

Behl highlighted the significant role of the Elevate model in boosting the company’s export volume, which grew by a remarkable 175% over the same period last year. The dispatches were aligned with the planned production volumes, he added.

Royal Enfield

Royal Enfield, the motorcycle manufacturer, has reported a 12% increase in total sales for April, with 81,870 units sold compared to 73,136 units in the same month the previous year.

The company’s domestic sales saw a 9% rise, with 75,038 units sold last month, up from 68,881 units in the year-ago period.

Meanwhile, Royal Enfield’s exports experienced a significant 61% increase, with 6,832 units exported last month, a substantial rise from the 4,255 units exported in April the previous year.

Maruti Suzuki India

Maruti Suzuki India (MSI) has reported a 4.7% increase in total sales for April, with 1,68,089 units sold compared to 1,60,529 units in the same month the previous year.

Domestic passenger vehicle sales remained steady, with 1,37,952 units sold last month, slightly up from 1,37,320 units in the year-ago period. However, sales of mini segment cars, including the Alto and S-Presso, saw a decline, with 11,519 units sold as against 14,110 units in April the previous year.

Sales of compact cars, such as the Baleno, Celerio, Dzire, Ignis, Swift, Tour S, and WagonR, also experienced a drop, with 56,953 units sold last month compared to 74,935 units in the year-ago month. In contrast, utility vehicles, including the Brezza, Ertiga, S-Cross, and XL6, saw an increase in sales, with 56,553 units sold last month, up from 36,754 units the previous year.

Hyundai Motor India

Hyundai Motor India has reported a 9.5% year-on-year increase in total sales for April, with 63,701 units sold compared to 58,201 units in the same month the previous year.

Domestic sales saw a modest 1% increase, with 50,201 units sold last month, up from 49,701 units in the year-ago period. This marks the fourth consecutive month of domestic sales exceeding 50,000 units, according to Hyundai Motor India’s COO, Tarun Garg.

Meanwhile, exports experienced a significant 59% increase, with 13,500 units exported in April this year, a substantial rise from the 8,500 units exported in April the previous year. Garg highlighted the role of models like the Creta, Venue, and Exter in driving growth, with SUVs contributing to 67% of the automaker’s domestic sales.

Toyota Kirloskar Motor

Toyota Kirloskar Motor has reported a 32% year-on-year increase in total sales for April, with 20,494 units sold compared to 15,510 units in the same month the previous year. The company’s domestic sales accounted for the majority of these sales, with 18,700 units sold last month. Meanwhile, exports totalled 1,794 units.

This growth was achieved despite a week-long maintenance shutdown from April 6, which was necessary for the upkeep of machinery and equipment to sustain operational efficiencies, productivity, and safety, according to the company.

MG Motors India

MG Motors India has reported a slight 1.45% year-on-year decline in retail sales for April, with 4,485 units sold compared to 4,551 units in the same month the previous year.

The company highlighted the significant role of its electric vehicle (EV) portfolio, which contributed to 34% of the total units sold during this period.

Ola Electric

Ola Electric has expanded its market share to over 50% in April, selling 33,934 electric two-wheelers, despite a broader 52% slump in overall EV two-wheeler sales to 64,013 units from the preceding month, according to data from the Vahan website.

This overall decline in sales is attributed to April being a seasonally slow sales period and demand tapering down post-festive season. However, Ola Electric’s sales have also come down by 34.8% month-on-month. Last year in April, Ola Electric sold nearly 22,068 units.

TVS Motor sales up 25% in April at 3,83,615 units

TVS Motor Company on Wednesday said its total sales increased 25% year-on-year to 3,83,615 units in April 2024 as compared with the same month last year. The company had dispatched 3,06,224 units to its dealers in the same month last year, TVS Motor Company said in a statement.

Total two-wheeler sales last month stood at 3,74,592 units as against 2,94,786 units recorded in April 2023. Two-wheeler sales in the domestic market grew by 29 per cent to 3,01,449 units last month from 2,32,956 units in April 2023.

Total exports registered a growth of 12% with sales increasing from 71,663 units in April 2023 to 80,508 units last month. Three-wheeler sales declined to 9,023 units in April 2024 from 11,438 units in the same month last year.

Eicher Motors

Eicher Motors’ total VE Commercial Vehicles sales fall 18.1% to 5,377 units against 6,567 units in the previous year.

Atul Auto

Atul Auto’s total sales in April rose to 1,692 units, up from 715 units in the corresponding month a year ago.

Tata Motors sales rise 11.5% to 77,521 units in April

Tata Motors on Wednesday said its total wholesales rose 11.5% year-on-year to 77,521 units last month as compared with 69,599 units in April 2023. The company’s total domestic dispatches rose 12% to 76,399 units last month as against 68,514 units in April 2023, the auto major said in a statement. Total passenger vehicle sales rose 2% to 47,983 units last month from 47,107 units in April 2023. Total commercial vehicle sales stood at 29,538 units last month, a jump of 31% as compared to 22,492 units in April 2023.

April #AutoSales | Tata Motors

⚡️Total Sales Up 11.4% At 77,521 Units Vs 69,599 Units (YoY)

⚡️Total PV Sales Up 2% At 47,983 Units Vs 47,107 Units (YoY) pic.twitter.com/jpclWWEj6O

— CNBC-TV18 (@CNBCTV18Live) May 1, 2024

Escorts Kubota

Escorts Kubota reported a year-on-year decline in the total tractor sales in April. The domestic tractor sales came at 7,168 units, 1.2% lower than 7,252 units sold in April 2023.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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April Auto Sales preview | M&M likely to post highest sales growth in cars, Hero MotoCorp in two-wheelers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Automakers, including Maruti Suzuki, Mahindra and Mahindra, Tata Motors, Bajaj Auto and Hero Motocorp, among others, report their monthly sales data on the first of each month. But May 1 being a market holiday, few companies might announce April sales numbers.

Among those who announced their numbers were Escorts Kubota. The company said total tractor sales were down 0.7% at 7,515 units versus 7,565 units YoY. Domestic tractor sales were down 1.2% at 7,168 units versus 7,252 units YoY.

With waiting periods in the cars or passenger vehicles segment going down, modest growth is expected in the segment whereas two-wheelers are likely to have witnessed good growth on the back of marriage season, according to analysts. The truck segment shall see mid-single-digit growth, analysts indicated.

Jefferies is of the view that wholesales in April would grow 15-18% on a year-on-year basis for TVS Motor Company, Bajaj Auto and Hero MotoCorp.

Nomura, meanwhile, expects the tractor segment growth to remain flat and the truck segment’s growth to be in mid-single digits.

The brokerage has pegged the industry’s growth for the 2024-25 fiscal year at 5%.

For April, Nomura expects Maruti Suzuki to continue to see the lion’s share of the market clocking in the highest number of car sales. Mahindra and Mahindra Auto is likely to see the maximum growth in sales, as per the analyst’s projection.

Also Read: India’s largest carmaker sells over 2 million cars in a year, SUVs take the lead

In the two-wheelers segment, Hero MotoCorp is expected to witness the maximum market share and the highest YoY growth for the month under review. While Bajaj Auto may be in the second spot in terms of sales, TVS Motors is likely going to occupy the spot in terms of growth.

Here are Nomura’s auto sales estimates for April 2024:

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BMW India sees Q1 2024 sales surge by 51%, luxury class sees 152% jump

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The German automaker’s Indian counterpart, BMW Group India, has had a stellar start to the first quarter of the calendar year 2024. Between January and March 2024, BMW Group India delivered 3,680 cars (BMW and MINI) and 1,810 motorcycles (BMW Motorrad). While 3,510 units of BMW were sold, the group sold 170 units of MINI.

The Group registered a 51% growth in car sales in Q1, making it the best ever Q1 for the company. Major demand and growth were registered in categories such as SUVs, Luxury Class, and Electric Vehicles.

Vikram Pawah, President of BMW Group India, said, “BMW Group India has posted a strong performance in the first quarter of the year. Breaking earlier records, Q1 car sales achieved new heights with successful growth of +51%! Our firm leadership in the luxury electric car market remains undisputed thanks to the most diverse range of products. The exclusive BMW Luxury Class has also assumed a segment-leading position. Our key car models are at the top of their game and with significant new launches in the pipeline, we will raise the heat in the luxury market.”

Also Read: Mahindra teases new compact SUV ‘XUV 3XO’, set for debut later this month

The group registered a 26% jump in Luxury Electric Vehicles and delivered 211 units. The company saw huge demand for its luxury EV BMW i7. BMW will soon launch BMW i5, thus expanding its EV offerings. Currently, BMW sells EVs such as BMW i7, BMW iX, BMW i4, BMW iX1, and MINI SE.

The highest growth was seen in the BMW Luxury Class segment, which registered a mammoth growth of 152%. 20% of total sales came from BMW 7 Series, BMW i7, BMW X7, and the BMW XM contributed. The sports segment also jumped by 62% in the first quarter and contributed 54% to the sales. BMW’s X1 was the top-selling sports model for the company.

In the first quarter of CY2024, the company saw good demand for models like the BMW X7, BMW X3, BMW X1, and BMW 3 Series.

Also Read: Tata Punch tops March sales, Hyundai Creta close second, Maruti slips to No. 3 for the first time

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Emkay’s Manish Sonthalia is bullish on this sector for the long term

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Manish Sonthalia, Chief Investment Officer (CIO) of Emkay Investment Managers  sees the cement sector as a good investment bet from a 2-3 year perspective. He recommends buying cement stocks on dips.

In an interview with CNBC-TV18, Sonthalia said the capex (capital expenditure) cycle is in an upswing and this benefits the entire value chain including raw materials like cement.

Currently, while volumes are growing, pricing is an issue because capacity utilisation in certain parts of the country is not that great.

Also, there might be a slowdown in demand for cement until the general elections, which begin on April 19 and conclude with the announcement of results on June 4.

Also Read | Adani family invests ₹6,661 crore in Ambuja Cements, raises stake to 66.7%

However, the pricing action will improve post-election results “because capex will pick up, ordering etc. will pick up post (election) results,” Sonthalia said.

Sonthalia also discussed his view on the automotive industry.

He expects assenger vehicles (PVs) and two-wheelers to do better than commercial vehicles (CVs) and tractors in FY25.

However, the growth rates in FY25 over FY24 for two-wheelers and passenger vehicles is going to be slower.

Also Read | Bajaj Auto sees 25% jump in sales in March, expects continued exports recovery in FY25

He believes the auto ancillary sector could be a better opportunity, particularly if exports pick up and India becomes a centre for exporting auto ancillary products.

The auto ancillary sector includes various segments like light-emitting diode (LED) manufacturers, battery management systems, and numerous tyre companies.

Also Read | Tata Technologies gains 7% on collaboration with BMW to set up automotive software hub in India

For the entire interview, watch the accompanying video

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bajaj Auto aiming for high double-digit growth for Triumph

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bajaj Auto is targeting a high double-digit growth for its premium bike brand, Triumph.

Rakesh Sharma, Executive Director at Bajaj Auto said achieving the target will depend on the pace of distribution.

Triumph achieved sales of over 6,000 units this month.

“We are building the brand position, we are putting in place programs that will not just lift brand awareness but will differentiate the brand and give an experience to a customer who’s entering the Triumph world,” Sharma said.

Read the edited excerpts of the interview below.

Q: What about Triumph? How our sales are shaping up as of now what’s the run rate and where do you see that number headed?

A: So Triumph overall this month, we have clocked over 6,000 units. There has been a good uptick in exports, many markets are now receiving the bikes made out of here. So that’s about over 4,000 units, and about 2,100 units of sales in India, retail sales I am talking about. And this would be in about 30-40 cities. So it’s a very steady progress.

It’s a new brand, we are now building as we are expanding the network. We are building the brand position, we are putting in place programs that will not just lift brand awareness but will differentiate the brand and give an experience to a customer who’s entering the Triumph world. And that is the kind of capability that we want to build over this year. So as we introduce more and more products, and as we expand distribution, brand awareness brand differentiation, and brand equity will drive the market shares.

Q: So from 6,000 units how do you see this number shape up?

A: We would definitely look at very high double-digit growth; it depends a lot on the pace of the expansion of our distribution. We are at this point of time, again, going quarter by quarter and ensuring that Q1, which is this quarter (April-June 2024) will be at least you know 30% better than the previous quarter.

Q: Talking about EVs, Chetak electric scooter did very well in the month of March this whole record unit, the industry itself did very well. But now April onwards or July onwards suppose the FAME subsidies are pulled out entirely then how do you see the way forward for the entire EV (electric vehicle) sector? Just trying to understand any low-cost EC that could be in the making for Bajaj.

A: Beginning April, the subsidy has already been announced by the government to be half of what it was. So that reduction is taking place. And that’s why you see a very strong blip for the industry in March. I expect that April will be low, but when you put March, April, and May together, we will come to the average level that we have been seeing in January, and February. The penetration levels obviously slows down when the net effective prices to the customers increase, but the customer is pretty switched on to the prospect of EVs. So more than anything else, it is going to continue to drive penetration albeit at a lower rate. We expect a growth of 20 to 25% over the year.

The other thing that is happening is that the battery prices are coming down and the cell costs are coming down. As a result, it gives us a little more room to have better pricing to mitigate the withdrawal of the subsidy to the customer. Therefore, I would say about 20-25% growth rate through the year can be expected and certainly the focus of the industry will probably now move more towards lower priced products or that kind of segment rather than very performance-oriented. Probably, we will go more towards the value products, which will also drive the industry. We have a strong pipeline and you will see within this quarter some introductions from us, which will carry our market position even further.

Q: On the EV side, on the two-wheeler front, could you give us a sense of, where do you, at the end of March what’s your market share? Fourth quarter market share?

A: Our performance, if I take the latest numbers which have just sort of rolled in, and these are basis Vahan registration and not billing numbers, we are in the number three position with, I think, 13 to 14% market share. This is a very significant change from last year when we were at this time at 5% and at a number six position. We have renovated and refurbished our Chetak range just in the last quarter January, February, March, and we are going to add to it. So, that has driven some of this increase.

When it comes to the industry, distribution plays a key role. But I think most of the major players are pretty well distributed. The swings that we see in market share in some competitors is largely attributed to pricing changes. And if you track the price movements over the last few months, including the introduction of cheaper newer products, I think on the balance what has driven shares is really a very high price-led initiative rather than distribution.

The EV is such a compelling proposition that if I have, let us say, five stores in Mumbai, people will go to those five stores, just having 50 stores in Mumbai is not going to suddenly change the fortunes dramatically. So there is a certain optimum level of distribution, so that the channel is healthy and the channel is motivated, and the channel is sort of investing behind the business. So I would say that it is really attacking the lower segment, price-wise, and to some extent distribution.

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Bajaj Auto sees 25% jump in sales in March, expects continued exports recovery in FY25

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bajaj Auto witnessed very strong sales in March supported by big recovery in export sales. The automaker’s total sales rose 25% year-on-year in March to 3.65 lakh compared to 2.91 lakh units in the corresponding month of last year, it informed the stock exchanges in a business update on April 2.

While domestic sales were up 18% YoY at 2.2 lakh for the month compared to 1.86 lakh units last fiscal, export sales jumped 39% YoY to 1.45 lakh versus 1.05 lakh units in March 2024.

Rakesh Sharma, Executive Director, Bajaj Auto told CNBC-TV18, in an exclusive interaction, that export recovery will be slow and steady and that exports in FY25 will be better than FY24.

“We expect Africa to be on a very, very gradual upswing, whereas ASEAN and Latin America are doing well. But South Asia, which is largely led by Bangladesh, is still very slow. The next few months would be a gradual recovery,” he explained.

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In the 2023-34 fiscal, Bajaj Auto’s domestic two-wheeler sales went up by 25%, however, exports declined by 10%, leading to an overall rise of 8%.

Sharma anticipates the domestic motorcycles market to grow at about 7%, even as he sees March retails a little under expectations. “We were expecting a similar kind of growth of 7% for the industry in March, but it has come out at about, very low single digits.”

“We are outpacing the industry, we have in quarter four grown at twice the rate of industry,” he asserted.

Reflecting on his firm’s electric vehicle sales, he said the latest numbers are basis VAHAN registrations and not billing numbers. “We are in the number three position with 13 to 14% market share, which is a very significant change from last year when we were at this time at 5% and at a number six position.”

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When asked about Ola hitting 40% market share in the EV space, he explained that the swings we see in market share in some competitors is largely attributed to pricing changes, which could also mean introduction of cheaper newer products. “On the balance, what has driven shares is really a very high price led initiative rather than distribution.”

Bajaj Auto shares traded 1.6% higher at ₹9215.10 on BSE at 10:31 am, following the sales data report.

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