Leading two-wheeler maker Bajaj Auto's exports have limited exposure to the US market, making it relatively less impacted by Trump's tariffs, however, the supply of rare earth magnets is still 'uncertain', Rajiv Bajaj said during a conversation with CNBC-TV18 on August 7, though for the full year the company does not see it having much impact on sales.
Bajaj said exports to US are small and primarily focused on its KTM and Triumph motor bikes, which annually sell 10,000 and 5,000 units respectively, however, the two-wheeler maker won't lose this share, as the upcoming months are traditionally slow in terms of exports ahead of the winter season. Bajaj Auto said it is trying to rejig exports for next year as well as try and diversify to markets such as Latin American, Europe and also Thailand.
Rajiv Bajaj said the company's exports to South America has revived after the pandemic and Nigeria remains the single sore point for motorcycles and Egypt for three-wheeler exports.
Read More: Bajaj Auto delivers a mixed Q1
On supply of rare earth magnets, Bajaj said the situation is still uncertain and company specific. Chetak EV's sales had some impact in the March quarter due to high volumes, but the June quarter did not see much hit due to high inventory. For the full year, Bajaj is confident of no impact due to the rare earth magnet issue, and said by October the automaker will be able to completely normalize the production that was lost in July and August. "We hope to make and sell more in H2 than what we had anticipated at the start of the year," Rajiv Bajaj said.
Bajaj said the company is now sourcing Low Rare Earth (LRE) magnets from China, which it is also trying to source from other suppliers too, while working on solutions without involving rare earth magnets.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
