Bajaj Auto market share up at 32% vs 21% (YoY)

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Bajaj Auto market share up at 32% vs 21% (YoY)

Bajaj Auto sold a total of 2.66 lakh vehicles in January 2010 versus 1.32 lakh in the corresponding period of 2009. Two-wheeler sales in January came in at 2.33 lakh units versus 1.09 lakh units.

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Bajaj Auto sold a total of 2.66 lakh vehicles in January 2010 versus 1.32 lakh in the corresponding period of 2009. Two-wheeler sales in January came in at 2.33 lakh units versus 1.09 lakh units.

Commenting on the company's sales figures, its Managing Director Rajiv Bajaj, said, the domestic bike sales came in at 1.8 lakh versus 67,000 units last year. "The market share too has grown from 21% to 32%." Pulsar sales, he said were at an all-time high of 72,000 units.

Here is a verbatim transcript of Rajiv Bajaj's comments on CNBC-TV18. Also watch the accompanying video.

Q: Can you break this 2.66 lakh figure for us between domestic and exports and also between the key two wheeler models which contributed?

A: Of the 2.66 lakh about 2.33 lakh is motorcycles of which about a hundred and eighty thousand is domestic motorcycle as oppose to a figure of 67,000 last January. So that is a growth more than double. The export is approximately 55,000 motorcycles. So 180 and 55 or 54 is about 233 that is where the motorcycle numbers are.

The three wheelers numbers are at 33,000 and that is about evenly broken up between domestic and exports. This is a growth of about 50% on last January as well. In terms of market share, last January was about 21% motorcycle market share and is up to about 32% now. So it is a big growth of about 11% in market share terms.

Q: How do the bike sales breakup between Pulsar and Discover?

A: Pulsar sales are actually at an all time high of almost 72,000 motorcycles. This is the highest ever by far. Discover continues to grow strong at about 92,000. Together, Pulsar and Discover are now up from 60% to 70% of our total motorcycle sales. So that makes the 22% EBITDA of the last two quarters possible to defend actually.

Q: How much of this 32% market share has come courtesy your newer launch the 135 cc Pulsar? What kind of response have you seen for that product?

A: The actual sale of this product in January, which was the first month since launch, was 28,000 vehicles, all sold domestically. We will continue to sell that domestically for the next couple of months because he has an extremely good response. We are trying to push this up to about 40,000 over the next couple of months. In January and February we are constrain by capacity. Hopefully, we will overcome that in March. In market share terms, 28,000 has simplistically given us about 4% additional market share because to the best of our understanding from our feel for consumer almost all of this sale is additional sales from competition. There has been no cannibalization of the other Pulsar's because those have continued to grow in January.

Q: How do you expect February to be because this is the pre-budget month and this time there are expectations of some excise changes in the budget? Do you expect February to see some kind of extra stocking because of that?

A: For Bajaj Auto, when we have done 2.33 lakh motorcycles in January, we have actually sold about 5,000 less than what our dealers have retailed. So the retail has been greater probably because consumers are anticipating a price rise by virtue of the budget. I think that will happen again in February. We will de-stock between 10,000-20,000 units in February, because our capacity is more constrain than what it was in January. So our own anticipation is that our motorcycles sales will remain in this neighborhood for the month of February but dealers will sell a larger quantity. That is why in March we are pushing very hard to get closer to the 3 lakh mark in motorcycles.