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Bajaj Auto exports to outnumber domestic sales soon

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In January 2015 Bajaj Auto exports increased 4% while domestic sales were down by 9%. This trend is due to the automaker’s renewed focus on export markets and their decision to quit scooter segment.

Bajaj Auto exports
Bajaj Pulsar 200 SS in Turkey.

The Pune based manufacturer. Bajaj Auto Limited was once the largest two wheeler maker in the country. There was a time that the waiting period for a Bajaj scooter extended to up to a year. But today, they are no longer No 1. They are behind Hero MotoCorp, Honda Motorcycles and Scooters India, and TVS Motors, on the 4th spot. This is mostly due to their decision to quit making scooters, and only concentrate on motorcycles.

This decision of theirs has led to the company increasing their focusing on exports. Taking into account the past five years, where domestic sales were over two thirds of total volume, as on date domestic volumes are just marginally over exports. FY 2013/14 reported 20.99 lakh two wheelers sold in the domestic market, and 13.23 lakh exported. For current FY, which will end on 31st March 2015, domestic sales are expected to be 18.24 lakhs and exports at 16.14 lakhs.

Overall, the period April 2014 to January 2015 saw volumes dip 14.26% in domestic markets while exports on the other hand saw an increase of 21.76%. This trend indicates that Bajaj Auto are soon going to become the first major two wheeler manufacturer in India to have more exports, than domestic sales.

Though no explanations were offered for notable fall in domestic sales, the reasons could be due to growing competition and the rise in demand for automatic scooters. Compared to motorcycle sales, scooter sales are registering a more rapid growth. For April 2014 to Jan 2015, motorcycle sales grew 4% to 91 lakh units, while scooter sales increased by 27% to 27.4 lakhs.

Over the next few months, the company will introduce a range of new Pulsar motorcycles. These includes 200 SS, 200 AS, 150 AS, and 150 NS. These motorcycles will help Bajaj increase domestic sales a bit, but at the same time, they will also help increase exports.

via Financial Express