Bajaj Auto , one of India's leading two-wheeler and commercial vehicle manufacturers, has reported a 5% year-over-year growth in its total sales for August. The company sold 417,616 units in August, up from 397,804 units in the same month last year, according to a press release issued by the company.

Segment-wise Performance

Two-Wheeler Segment

The two-wheeler segment, which forms the bulk of Bajaj Auto's sales, showed mixed results:

• Domestic Sales: 184,109 units (down 12% from 208,621 units in August last year)
• Exports: 157,778 units (up 25% from 126,557 units in August last year)
• Total Two-Wheeler Sales: 341,887 units (a 2% increase from 335,178 units in August last year)

Commercial Vehicle Segment

The commercial vehicle segment demonstrated strong growth:

• Domestic Sales: 48,289 units (up 7% from 45,206 units in August last year)
• Exports: 27,440 units (a significant 58% increase from 17,420 units in August last year)
• Total Commercial Vehicle Sales: 75,729 units (a 21% increase from 62,626 units in August last year)

Overall Sales Breakdown

Key Highlights

1. Export Growth: Bajaj Auto's overall exports surged by 29%, significantly contributing to the company's total sales growth.
2. Commercial Vehicle Strength: The commercial vehicle segment showed robust performance with a 21% increase in total sales.
3. Domestic Market Challenges: The company faced headwinds in the domestic market, particularly in the two-wheeler segment, which saw a 12% decline.

Year-to-Date Performance

For the first five months of the current fiscal year, Bajaj Auto has reported:

• Total Sales: 1,894,853 units (a 2% increase from 1,854,029 units in the same period last year)
• Domestic Sales: 1,050,349 units (down 9% year-over-year)
• Exports: 844,504 units (up 21% year-over-year)

The company's strong export performance has been a key factor in offsetting the challenges in the domestic market, helping Bajaj Auto maintain overall growth in both monthly and year-to-date sales figures.

As the automotive industry continues to navigate through various market dynamics, Bajaj Auto's diverse product portfolio and strong presence in export markets appear to be crucial factors in its sales performance.

Bajaj Auto , a leading Indian two-wheeler manufacturer, has successfully resolved a global magnet supply issue that was impacting its operations. In a significant development for the company and its customers, Bajaj Auto has announced the resumption of deliveries for its electric scooter, the Chetak, ahead of the initially planned schedule.

Ambitious Delivery Targets

Bajaj Auto's Managing Director has set ambitious delivery targets for August, aiming to deliver more than 15,000 Chetak e-scooters and 7,000 electric three-wheelers during the month. This aggressive push demonstrates the company's commitment to expanding its presence in the electric vehicle market.

Supply Chain Resilience

The resolution of the magnet supply issue demonstrates Bajaj Auto's agility in managing supply chain disruptions. Magnets are crucial components in electric vehicle motors, and global supply constraints have been a challenge for many EV manufacturers.

Timely Restart Before Festive Season

By restarting deliveries earlier than anticipated and setting high delivery targets, Bajaj Auto has positioned itself favorably for the upcoming festive season in India. The festive period typically sees a surge in vehicle sales, and the increased availability of the Chetak electric scooter could potentially boost the company's sales figures.

Implications for Chetak Electric Scooter

The Chetak, Bajaj Auto's foray into the electric two-wheeler market, has garnered significant interest since its launch. The resumption of deliveries and the ambitious target of over 15,000 units in August is likely to be welcomed by customers who have been waiting for their vehicles. This development could also help Bajaj Auto strengthen its position in the growing electric vehicle segment in India.

MD's Stance on Proposed GST Cut

Bajaj Auto Managing Director Rajiv Bajaj has welcomed the government's proposal to reduce GST on two-wheelers from 28% to 18% for models under 350 CC, describing it as a 'fabulous and fantastic' step. However, he advocated for extending the benefit to all segments, noting that over 97-98% of two-wheelers sold in India are under 350 CC.

Bajaj highlighted that India's proposed 18% rate remains significantly higher than global norms, where tax rates range between 8-14% with a median of 12%. He warned that limiting the reduction to vehicles under 350 CC could create market distortions and potentially force manufacturers to unnecessarily realign product portfolios.

The MD also noted that the two-wheeler industry has struggled to recover to pre-COVID levels due to inflation outpacing income growth. Regarding demand impact, Bajaj indicated that the slowdown has already started as consumers defer purchases awaiting lower prices, but expects demand to bounce back strongly during the festive season if new rates take effect from October 1.

Conclusion

The swift action taken by Bajaj Auto to overcome the magnet supply issue and expedite Chetak deliveries, coupled with its ambitious delivery targets, underscores the company's commitment to its electric vehicle strategy and customer satisfaction. As the festive season approaches, this timely resolution and aggressive push, along with the potential GST reduction, could provide Bajaj Auto with a significant competitive edge in the two-wheeler market, particularly in the electric segment.