Jan numbers will speak for themselves: Rajiv Bajaj

His company’s falling share in motorcycles has been making the news lately but Rajiv Bajaj isn’t unduly concerned.

“By the end of this month, the numbers will speak for themselves and by the end of March, things will be even better,” the Managing Director of Bajaj Auto told Business Line .

The sales figures for January will be out in the next couple of days. December saw a near 13 per cent fall in bike numbers (from last year’s levels) to 2.61 lakh units leading to market concerns that the Discover was losing ground. According to Bajaj, “the last few months have actually seen a transition in the Discover to the all-new platform. The first bike to roll out was the 100M in October and the idea was to ramp up production in November and December. This was a challenge with the Diwali season coupled with the annual shutdown of the plant.”

Upward trends “The real issue was getting the new product to the market. January will see the required volumes for the 100M and this exercise is on course,” Bajaj says. The trends indicate that around 50,000 units of this new model will be produced which is “very nice” for a new product.

With the sales tempo expected to continue in February, the company is preparing to launch the new Discover 125 in March. “I am hopeful that this model will be successful since it will be riding on the immensely popular legacy of the Discover in this category,” Bajaj says.

It is also his firm belief that the company will cover more than half the ground for the Discover in January. “This will be full by the end of this quarter when the new (Discover) 125 is launched and volumes will only grow further thereon,” Bajaj adds. As he puts it, there are no issues with the Pulsar which has a comfortable 45 per cent market share in the sports segment. The only task now is to boost volumes of the Discover in the commuter segment. This product category accounts for a lion’s share of bikes sold in the country and is dominated by Hero MotoCorp’s Splendor and Passion models.

With barely two months to go before the fiscal draws to a close, Bajaj is upbeat about the prospects for 2014-15. “Going forward, we have an exciting year because after a long time, we are getting into a space where everything will be in place at the beginning of the fiscal,” he says.

New launches Within the first half of 2014-15, ‘two new exciting’ Pulsars will be launched and a preview can be had at the Delhi Auto Expo next week. From Bajaj’s point of view, these two products will translate into ‘huge scoops’ of profitability and keep the 20 per cent plus EBITDA (earnings before interest, tax, depreciation and amortisation) story intact.

The other exciting area is in the three-wheeler space where the company has in place different vehicle sizes fitted with a host of fuel options ranging from LPG, CNG, petrol and diesel. Bajaj Auto is already the top player in the world and the new three-wheelers are expected to strengthen this position.

Exports continue to grow and the alliances with KTM and Kawasaki could increase the global roadmap in the near future for bikes with Latin America and ASEAN emerging potential growth levers. “I am certain that this fiscal will record the highest profit after tax for Bajaj Auto ever in its history,” declares an upbeat Rajiv Bajaj.

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