Bajaj Auto looks to sustain momentum in its domestic business and expand production capacity for new businesses as it expects demand to remain robust in the current fiscal, according to its Chairman Niraj Bajaj.
Addressing shareholders in the company's Annual Report for 2023-24, he noted that the company would also aim for recovery in export volumes.
"It is anticipated that India, now the fastest growing economy in the world, will achieve upwards of 7 per cent real GDP growth in FY2024, and various forecasts expect this buoyancy to continue in FY2025," Bajaj said.
With stable CPI inflation at around 5 per cent, the company envisages double-digit nominal GDP growth, he added.
"In such a milieu and barring any unforeseen event, I would expect domestic demand to continue to pave the way for another year of growth up ahead," Bajaj said.
Elaborating on the focus areas, he noted that the company aims to sustain momentum in its domestic business and continue to drive growth across all segments.
Besides, the Pune-based firm looks to "navigate the challenging international landscape and stay the course on recovering our export volumes", Bajaj said.
Bajaj Auto also plans to expand capacity, capabilities and network for its new businesses – Chetak electric scooters, electric three-wheelers and Triumph motorcycles, the Chairman informed the shareholders.
Commenting on the last fiscal, Bajaj noted that a strong domestic performance more than made up for muted exports which continued to be impacted by the challenging context in overseas markets.
The company had to navigate continued rough macroeconomic conditions across its key markets, he stated.
Bajaj stated that the balance sheet of the company remains very healthy with surplus cash and cash equivalent as on March 31, 2024, standing at Rs 16,386 crore, this after making capital investments of Rs 800 crore and paying a significant Rs 8,900 crore to shareholders between dividend and the share buyback.
This financial position allows the company to invest sufficiently for its competitive and sustainable future growth as well as reward its shareholders from time to time, he added.
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