Bajaj Auto. Global sales down 39% year to date April

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Bajaj Auto global sales reported down 39.3% in the first four months of the 2020, mainly due to the Indian market shutdown. Projection for the Q2 are still very negative as the economic consequence of Covid19 are hitting India and South America, the most relevant areas for this manufacturer.

Bajaj Global 2020 sales data and outlook

Bajaj is the Indian motorcycles company more better structured outside of India, with a strong presence in Latin America, were Bajaj competes for leadership against Honda and top local manufacturers.

However, the 2020 is really negative for the company. In India, the market was declining due to new emission rules introduction and the arrival of Covid19 has created huge difficulties for all, despite an immediate counteraction taken by the government.

As consequence, global Bajaj registrations in the first four months of the year fell down 39.3%, with India down 44.5% (but April sales were zero). Preliminary data for Latin America are not so negative (while we have not yet collected all countries updates), mainly due to Colombia, with Bajaj sales year to date April up 2%. In Argentina and Ecuador sales fell 33%.

Global sales declined in the 2019 while international activity grew up

Bajaj Auto is the most active Indian motorcycles company in the World, despite is much smaller than Hero as total volume

In the last decade sales boomed due to the combined effect of growing domestic indian market and the success of international operations. In India, Bajaj grew up from 1.3 million sales in the 2012 to a record of 2.8 in the 2018. The decline of Indian market, hit the 2019 sales with calendar year global sale at 3.6 million, down 0.2 million from the previous year record.

Two-third of sales have been done in India, with sales at 2.5 million units, down 12%.

In Latin America, Bajaj is leader in several countries. Despite the market declined, the manufacturer was able to keep 2019 sales steady, gaining market share.

 

Brand Heritage

Bajaj Auto is an Indian brand specialized on manufacturing two-wheeler and three-wheeler, headquartered in Pune, India, world leader in the three-wheeler segment. The company name is Bajaj Auto Limited and is one of the 25 companies of the Bajaj Group.

Bajaj Auto Limited is one of the 25 companies of the Bajaj Group (founded in 1944 by Jamnala Bajaj) which actually has a presence in diverse businesses such as Electronics, Life Insurance, General Insurance, financial services and other.

The company is well-known for its R&D product development process engineering and low-cost manufacturing skills. The company is the largest exporter of two and three-wheelers in the country.

In 1959 Bajaj Auto Ltd. obtained from the Government of India the licence to manufacture two-wheelers and three-wheelers. Thanks to a partnership with the Italian Piaggio, they obtained the licence to manufacture in India the already famous Piaggio Vespa and started to produce the Bajaj Vespa 150 scooter.

In 1960 Baja became a public limited company and the plant produced the 100.000 vehicles ten years later, in the 1970, while the record of 100.000 units sold in a single financial year was hit in the 1977.

In the 1984 the company joined a partnership with the Japanese Kawasaki (which ended only in the 2017) to develop, produce sell and assist two-wheels in the Indian market.

In the 1985 it was opened a second plant (in Waluj near Aurangabad) to support the strong demand and already in the following year it was hit the milestone of half a million sales in a single financial year, becoming the biggest 100% Indian company in the sector. That year at the scooter and rickshaw production it was added the motorcycles line up.

In November 2007 Bajaj Auto International Holdings BV a wholly owned subsidiary company acquired 14.51% equity stake in KTM Power Sports AG of Austria Europe’s second largest sport motorcycle manufacturer for Rs 345 crore.

In 2012 Bajaj Auto tied up with Japan’s Kawasaki in Indonesia, lately extended to the Philippines.

On 8 August 2017 Bajaj Auto and Triumph Motorcycles UK announced global partnership whereby Bajaj will gain access to the iconic Triumph brand and its great motorcycles enabling it to offer a wider range of motorcycles within its domestic market and other international markets.