Bajaj Auto has become the most valuable two-wheeler company in the world – with a market capitalization of Rs. 1 lakh crore
The Indian automobile industry struggled through the entire first half of 2020 due to the pandemic striking early in the year. However, it showed signs of recovery in the latter half after July/August and by the end of last year, sales improved substantially for almost every two and four wheeler in the country.
Bajaj Auto has announced an 11 percent increase in sales in December 2020. Positive sales were noted both in terms of domestic sales and exports and where the company range of two wheelers were concerned while commercial vehicles sales dipped substantially.
Bajaj Auto Domestic Sales and Exports
In domestic markets, Bajaj Auto sold 1,28,642 units in Dec 20, an increase of 4 percent as against 1,24,125 units sold in Dec 19. Pulsar, Platina and CT range were the highest sellers in domestic market. Exports in the past month were at their highest at 2,09,942 units, up 31 percent from 1,60,677 units exported in Dec 19. Leading the exports were Boxer, Pulsar range. This took total sales in this segment up 19 percent to 3,38,584 units, up from 2,84,802 units sold in the same month of the previous year.
Where commercial vehicles were concerned, domestic sales stood at 10,964 units in the past month, down by 62 percent, while exports increased marginally to 22,984 units up from 22,215 units exported in Dec 19. Total sales of commercial vehicles fell 34 percent to 33,948 units in Dec 20 down from 51,253 units sold in Dec 19.
Year to Date Sales
FY 2020 opened on a dismal note. Hence YTD sales of Bajaj Auto also suffered both where two wheeler and commercial vehicle sales were concerned. Two wheeler sales dipped 21 percent to 13,21,644 units in the April to December 2020 period, down from 16,75,264 units sold in the same period of the previous year.
Exports fell 13 percent to 12,36,617 units thus taking total two wheeler sales down 17 percent to 25,58,261 units, down from 30,94,028 units sold in the April to December 2019 period. Domestic sales and exports of commercial vehicles dipped 54 percent to 2,44,989 units. Total two wheeler and commercial vehicle sales fell 23 percent to 28,03,250 units in the 9 month period, down from 36,23,251 units sold in the same period of the previous year.
Leading Two and Three Wheeler Maker
Bajaj Auto Limited, a leading two and three wheeler maker recently hit its 75th year of operations. Apart from being the largest two wheeler maker in India, the company has also become the most valuable two wheeler company globally having crossed market capitalization of Rs.1 lakh crores. Share price now stands at Rs.3,479 and market capitalization at Rs 100,670.76 crores.
The Bajaj Auto brands like the Pulsar, Boxer, Platina and RE are among the most popular across the globe. The recently launched Chetak eScooter has also found favour among buyers and the company has also made a major investment of Rs.450 crores in a 4th plant in Chakan, Maharashtra for the production of its premium range of motorcycles and e-scooters. Apart from this manufacturing facility, Bajaj also has its production units at Waluj near Aurangabad, and at Pantnagar in Uttarakhand.
A successful partnership with KTM AG, Austria has also helped it on its journey to success and for KTM to become the largest manufacturer of premium sports motorcycles. Bajaj has also entered into an alliance with Triumph Motorcycles to develop budget friendly low capacity premium motorcycles. Plans are afoot to enter new global makers with entry to Thailand later this year and Brazil in early 2022.