125cc+ Segment To Drive Growth In Two-Wheeler Sector: Bajaj Auto's Rakesh Sharma

'We have got the entire motorcycle industry in our crosshairs,' he says.

(Source: Bajaj Auto/Facebook)

Bajaj Auto Ltd.'s strategy is to focus on the 125cc+ segment and the two-wheeler manufacturer is just 1–2% shy of achieving leadership in it, Executive Director Rakesh Sharma has said.

Sales of domestic two-wheelers have surged dramatically in the past quarter due to the combination of festive celebrations and marriage season. This spike, particularly during the last week of March and the first week of April, has led to record-breaking demand in comparison to the year-ago period, according to Sharma.

"We expect an underlying growth of 6–8% in the industry, driven by the 125 cc+ segment. The 125cc+ segment is growing at a double-digit rate," he told NDTV Profit's Niraj Shah in an interview.

Rakesh Sharma, executive director of Bajaj Auto (Source: NDTV Profit)

Rakesh Sharma, executive director of Bajaj Auto (Source: NDTV Profit)

Also Read: Bajaj Auto Q1 Results: Profit Rises 42%, Meets Estimates

Sharma said the April-June period of the current financial year is the third consecutive quarter for the auto major to deliver 20% earnings before interest, taxes, depreciation and amortisation at a corporate level.

This is an outcome of better realisation coming from all business units, along with a strong and steady three-wheeler business, he said. "There was a cost pressure, which we passed on, but it was in the range of 1–2%."

He pointed out that the recent launch of Freedom 125 would assist the company in enhancing its presence in the 100–125 cc segment, an area where it is presently underperforming.

Bajaj Auto has entered a defining phase in the motorcycle segment. If successful, this could result in a significant boost in volume in a segment where it currently has a shortfall, according to Sharma. "Putting together our past success in the 125cc+ and the move around Freedom 125, we have got the entire motorcycle industry in our crosshairs."

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WRITTEN BY
Sreshti Srinivasan
Sreshti Srinivasan covers markets and business news at NDTV Profit. She hol... more
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