New Delhi: After the announcement of its corporate results for FY 2019-20, Bajaj Auto Ltd has emerged as the largest 2 and 3 wheeler manufacturer in India measured in terms of revenue. Bajaj Auto Ltd. posted revenues of INR 29,919 crores in FY 2019-20 with operating EBITA margins of 17.6% at INR 5,253 crores and PBT of INR 6,580 crores. The company has clocked a CAGR of 10% over the last decade (2010 – 2020), with revenues moving up from INR 11,509 cr. in FY 2009-10 to INR 29,919 cr. in FY 2019-20. Additionally, last year has seen it achieve several milestones that have set the tone for the next phase of growth.
Bajaj Auto pioneered the sports motorcycling segment in India with the launch of the Pulsar in 2001. Eighteen years later, Pulsar continues to be the market leader with a wide portfolio of models. In 2019-20, Pulsar successfully expanded its franchise through the launch of the Pulsar 125 and further strengthened its leadership in the Sports segment along with the top of line Dominar 400 and the newly launched Dominar 250.
Bajaj Auto continues to leverage its R&D prowess to deliver meaningful innovation and differentiated value propositions to customers in the mass commuter segments. The last 12 months has witnessed the successful launch of new models like the Platina H-gear and the CT110. This has been backed by highly memorable communication and activation programs (e.g. Platina’s ‘Jhatka Mana Hai’, CT ‘har sadak par kadak’) that have driven affinity with the end customer.
Bajaj Auto has been highly successful in further increasing its leadership market share of the Intra-City Business Unit comprising the RE, Maxima & Qute brands of 3 wheelers and quadricycles. The Company has built a strong portfolio of ‘alternate fuel’ engine vehicles to ensure leadership for its range of RE small 3 wheelers. Notably, Bajaj Maxima attained leadership in the large 3 wheelers passenger segment in FY 19-20.
The year also saw the Qute, India’s first quadricycle, successfully start operations in partnership with Uber to provide convenient, affordable and comfortable public transportation options to customers in Bengaluru.
Bajaj Auto continued to lead Indian automobile exports, accounting for over 50% of the country’s 2 wheeler and 3 wheeler exports with a turnover of INR 11,845 crores. In FY 2019-20, 47% of Bajaj Auto’s production was exported to over 79 countries. With a cumulative 15 million vehicles exported till date, Bajaj is one of the most visible Indian brands across the globe, truly making it “The World’s Favourite Indian”. The company’s global sales have earned over US$ 13 billion of foreign exchange in the last decade.
Bajaj Autos growth and presence in India and in global markets has been on the back of its own brands as well as its highly successful partnership with KTM. The Bajaj Auto – KTM alliance has enabled KTM AG to become the largest European motorcycle manufacturer. New products co-designed with KTM and manufactured at Bajaj Auto’s Chakan plant near Pune have opened new product market segments for this partnership. Bajaj Auto has now further expanded the franchise through the KTM 125 range and has also introduced another premium brand from the KTM stable – Husqvarna – for the discerning Indian customer.
In FY 2019-20 a non-equity alliance was announced between Triumph of UK with an aim of co-developing new products to address new segments and geographies across the world.
Last October, Bajaj Auto brought back the iconic Chetak scooter in an all new electric avatar. Bookings opened in January 2020 in Pune and Bangalore and deliveries commenced in early March, with initial customer feedback being extremely positive.
Commenting on this performance, Mr. Rakesh Sharma, Executive Director, Bajaj Auto, said, “While FY 2019-20 was indeed a challenging year, we are delighted to note that not only have we emerged as the overall leader in our segment, we have also put in place several initiatives that will build momentum. This achievement is testimony to our unwavering focus and relentless pursuit of our three pronged strategy – using our R&D to develop innovative products and create differentiated brands; building a global business and leveraging principles of TPM to simplify operations and deliver top class quality. Despite the uncertainties surrounding the immediate future, we are confident that our strategic path will serve our ambitions of global leadership and business success.”
Commenting on this performance, Mr. Soumen Ray, CFO, Bajaj Auto, said, “Our reach in global markets coupled with a diverse & evolving product portfolio has helped us de-risk our business as we are not overtly reliant on any one geography or product. Consequently, our revenues and profits are not dependent on any specific sets of products or geography. Our strong operating performance is a combination of our export performance, product mix and Forex, which allow us several levers to protect our industry leading margins.”