Bajaj Auto Expects To Outpace Industry Growth In April-June Quarter

Days after Bajaj Auto Ltd. reported a 5% jump in total sales in June the company said it expects to outpace the industry's growth in the first quarter of fiscal 2025.

"We hope to outpace this growth because it is weighted in favour of the top half of the industry, where we have got a lot of play and we have been, over many previous quarters, outpacing the industry and gaining market share," Rakesh Sharma, executive director at Bajaj Auto told NDTV Profit in a televised interview.

He expects 6-8% growth for the industry, which is good as it comes on the back of underperformance for the last few years. July and December are the lowest months that offer "little flexibility" but the growth will start building up in September, Sharma said.

The company has been consistently gaining market share and is only one-two percentage points away from leadership of the top half of the industry, that include 125-CC+ models, Sharma said. When it comes to the bottom half, the new launch of CNG bike will offer growth in this segment of the industry, he said.

Low penetration of motorcycle in India, compared to other countries with a similar demographic is a challenge, Sharma said. The 28% GST charged by the government is among other challenges. If acquisition cost for the end customer can be brought down, then that will naturally help boost motorcycles sales, he said.

With the new launches getting "spectacular" response, Sharma is optimistic that the new portfolio will help in boosting growth of the two-wheeler maker.

Shares of Bajaj Auto on Wednesday closed 0.22% higher at Rs 9,422.40 apiece, compared to a 0.67% advance in the NSE Nifty 50.