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Bajaj Auto to boost sales through overseas market

Bajaj Auto, the number motor cycle maker in India, is betting big on overseas market to boost sales, at a time when Indian market is seeing some slowdown in sales. The company expects sales outside India will outstrip domestic sales in future, said MD Rajiv Bajaj.

October 23, 2011 / 07:11 PM IST
 
 
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Moneycontrol Bureau


Bajaj Auto, the number two motor cycle maker in India, is betting big on overseas market to boost sales, at a time when Indian market is seeing some slowdown in sales. The company expects sales outside India will outstrip domestic numbers in future, said MD Rajiv Bajaj.


"The market size outside India is four times that of India. The global market of motor cycle is around 35 million and Bajaj Auto has just 10% market share. We have immense potential to grow," he said in an interaction with reporters.


Bajaj Auto is already selling more three wheelers overseas than in India. In the second quarter, out of the 1.37 lakh three-wheelers that it sold, over 81,000 were in the overseas market and 55,000 in India. The company sold 10.27 lakh motor cycles in the July-September quarter of which, 3.43 lakh were sold in other countries and 6.85 lakh in India.


Bajaj Auto is focusing more on overseas market as sales growth is far more than it is seen in India this year. For instance, motor cycle exports growth was 37% in Q2 while domestic sales growth was just 8%.


Three wheeler exports jumped 44% in Q2, compared with 9% domestic growth. The company is focusing more on export also because of higher realizations. Bajaj Auto raised product prices in the export market by 3.5% in July-September quarter and has further raised prices from October 1.


Analysts point out, the price hike coupled with favourable foreign exchange movements helped to improve export realizations by 9% in the last quarter.


Bajaj is hopeful of meeting the company's earlier guidance to grow total sales by 20% in this fiscal. Bajaj Auto recently launched a new 150 CC Boxer motor cycle targeting semi urban and rural area. It is also launching a new Pulsar next year. These launches are expected to help company accelerate sales.


Bajaj officials did not divulge more details regarding the new Pulsar but said, it will be a totally new bike with technology currently unavailable anywhere in the world.


Meanwhile, Bajaj Auto has done a feasibility study in Gujarat for a likely new manufacturing plant but Bajaj said, the company has not yet finalized on location and timing of setting up of the new plant.


Bajaj Auto shares on Friday rose nearly 2% to end the day at Rs 1,641 on the NSE.


Nachiket Kelkar


nachiket.kelkar@network18online.com


 


 

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