New Delhi, July 26
Bajaj Auto is witnessing a powerful revival in demand for two-wheelers within the home in addition to worldwide markets, even because it continues to face headwinds within the three-wheeler section, a senior firm official has stated.
The firm, nevertheless, expects to have a a lot clearer pattern at its disposal by the following month-end to see whether or not the present demand for two-wheelers is only a pent-up demand from earlier months or the business actually is again on a revival path.
“We are seeing month-on-month improvement in sales. There was no sale in April while the decline was very large in May. June was significantly better than May and July is much better than June,” Bajaj Auto CFO Soumen Ray advised PTI.
The demand state of affairs is coming again fairly sharply and it could possibly be a pent-up demand as nicely, so the readability would emerge solely in August, he added.
In April-June, the corporate offered 1,85,981 models within the home market, down 69.55 per cent from 6,10,936 models in the identical interval final yr.
Ray, nevertheless, famous that the home three-wheeler section will take a while to revive.
“Such vehicles are mostly bought by taking loan. So why would someone like to start an EMI when there is no business? Passenger three-wheeler recovery will happen once this once these lockdowns end,” Ray stated.
The firm’ CV gross sales (three-wheelers) within the home market in the course of the first quarter of the present fiscal plunged by 93.87 per cent to five,282 models as towards 86,217 models within the April-June interval of the final fiscal.
When requested if the corporate expects issues to show round by festive season, he stated: “Certainly, hope so, there is no reason why it should not happen. However, we will have to see August. If we have reasonably strong August then we are set for a good festive season.” He stated that firm’s Waluj (Aurangabad) plant is operational and there have been solely a only a few employees who had been in quarantine attributable to COVID-19.
The manufacturing unit is presently operating with capability utilisation of round 65-70 per cent, Ray stated.
When requested if the corporate had earmarked any capex on capability growth this fiscal, he stated: “Our installed capacity is 63 lakh units per annum and right now we are operating at sub 50 lakh. Last year, we did around 48 lakh units so there is no question of putting up additional capacity.” On exports, Ray stated that nearly each market the corporate caters to has been impacted as a result of coronavirus pandemic.
“Fortunately, we have an order book and we continue to deliver. In retail terms we are witnessing similar phenomenon as we are seeing in India. Two-wheelers are coming back much faster than three-wheelers,” Ray famous.
Bajaj offered over 2,13,000 models within the worldwide markets in first quarter as in contrast with 4,71,691 models in the identical interval final yr.
KTM, through which Bajaj Auto has 48 per cent stake, is witnessing very sturdy revival in nations like Germany, Australia and the US, he added.
During April-June, KTM reported gross sales of 33,220 models as in contrast with 38,267 models in the identical interval of the earlier fiscal. PTI