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Leading two- and three-wheeler manufacturer Bajaj Auto is aiming to sell an average of 3,35,000 vehicles a month, said its Managing Director, Rajiv Bajaj. “Of these 3,35,000 vehicles, 35,000 will be three-wheelers.”
The company, he said would focus on three motorcycle brands, namely Boxer, Discover and Pulsar. “The new Discover, which is scheduled to be launched by April-end, will not cannibalise but expand the brand,” he said adding that the sales of Discover and Pulsar jointly were expected at 2,00,000 a month.
Over the January to March quarter, the company, after a long time, experienced a gap between supply and demand. “We were not able to cope with demand due to capacity constraints and that’s why we had to wait till we had more capacity in place,” Bajaj said, adding quickly that things were in place now. Bajaj Auto’s objective is to hold margins at 20%, he said, adding, “We won’t slip below that target”.
Below is a verbatim transcript of an exclusive interview with Rajiv Bajaj on CNBC-TV18. Also watch the accompanying video.
Q: I want to talk about your FY11 guidance that you have set out in terms of vehicles that you can sell. How you would break that up, in which key categories? What kind of monthly clip are you aiming at?
A: Let me try and explain that in the context of the year that just passed. We have closed at 2.85 million vehicles, the highest ever in our history and our guidance is for 4 million vehicles this year. This translates to roughly 335,000 vehicles a month as an average through the year. Of this we expect our three wheelers to be about 35,000 vehicles a month which is about 400,000 on an annual basis as oppose to about 350,000 we did last year.
I think that’s a reasonable level of growth. The balance 300,000 would be motorcycles of which we hope to export close to about 70,000 a month and the balance about 230,000 perhaps 240,000 we hope to sell domestically. If you look at our main competitor they sell close to 370,000-380,000 bikes in the domestic market every month. So when we target something like 240,000, it’s still a modest target.
Source:
Bajaj Auto expects to sell 3.35 lakh vehicles/month - CNBC-TV18 -
The company, he said would focus on three motorcycle brands, namely Boxer, Discover and Pulsar. “The new Discover, which is scheduled to be launched by April-end, will not cannibalise but expand the brand,” he said adding that the sales of Discover and Pulsar jointly were expected at 2,00,000 a month.
Over the January to March quarter, the company, after a long time, experienced a gap between supply and demand. “We were not able to cope with demand due to capacity constraints and that’s why we had to wait till we had more capacity in place,” Bajaj said, adding quickly that things were in place now. Bajaj Auto’s objective is to hold margins at 20%, he said, adding, “We won’t slip below that target”.
Below is a verbatim transcript of an exclusive interview with Rajiv Bajaj on CNBC-TV18. Also watch the accompanying video.
Q: I want to talk about your FY11 guidance that you have set out in terms of vehicles that you can sell. How you would break that up, in which key categories? What kind of monthly clip are you aiming at?
A: Let me try and explain that in the context of the year that just passed. We have closed at 2.85 million vehicles, the highest ever in our history and our guidance is for 4 million vehicles this year. This translates to roughly 335,000 vehicles a month as an average through the year. Of this we expect our three wheelers to be about 35,000 vehicles a month which is about 400,000 on an annual basis as oppose to about 350,000 we did last year.
I think that’s a reasonable level of growth. The balance 300,000 would be motorcycles of which we hope to export close to about 70,000 a month and the balance about 230,000 perhaps 240,000 we hope to sell domestically. If you look at our main competitor they sell close to 370,000-380,000 bikes in the domestic market every month. So when we target something like 240,000, it’s still a modest target.
Source:
Bajaj Auto expects to sell 3.35 lakh vehicles/month - CNBC-TV18 -
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