Pune-based Bajaj Auto is on a new high, with growth accelerating on all fronts. The company, which has recorded a scorching pace of growth, both in domestic and exports markets, has led the domestic two-wheeler market share charge in FY2019. With sales of 2,541,320 motorcycles in FY2019, which marks robust 28.70 percent year-on-year growth, Bajaj Auto has increased its two-wheeler market share from 9.78 percent in FY2018 to 12 percent in FY2019. This 2.22 percentage-point increase is the highest by a two-wheeler OEM in FY2019.
So, it's not surprising that the company's financial numbers for FY2019 have hit a record high. In its financial report for FY2019, Bajaj Auto has reported its turnover in FY2019 at Rs 31,899 crore. Its consolidated profit after tax came to Rs 4,928 crore. For Q4 FY2019, the company reported a consolidated profit of Rs 1,408 crore with a turnover of Rs 7,828 crore.
A millionaire on two wheels, five times over
In FY2019, Bajaj Auto has registered its highest ever yearly volume by crossing the 5-million-units mark. The two-wheeler major - sold 610,094 motorcycles in Q4 FY2019, which marks growth of 23 percent over FY2018. The yearly figure also indicates that its highest growth came from the motorcycle market with a growth of 29 percent (2,541,320 units). In Q4, Bajaj reported a 9 percent growth in exports with 391,889 units (33,087 units more). However, its exports for FY2019 grew by 22 percent at 1,695,553 units.
Domestic sales and exports together saw the company notch total volumes of 1,001,983 motorcycles in Q4 FY2019 and 4,236,873 motorcycles in FY2019. The overall share in the domestic motorcycle market increased to 18.7 percent as against 15.7 percent in FY2018. In the entry-level segment, Bajaj claims to have registered growth of 52 percent over FY2018 while the industry growth is said to be 26 percent. This handsome growth is attributed to its CT100 (742,000 units, 59% more than FY2018) and the Platina commuter motorcycles (626,000 units, growth of 44% over FY2018). In the sports segment, Bajaj Auto sold 908,000 Pulsars in FY2019, which is claimed to be its highest ever.
Commercial vehicle sales soar
If Bajaj Auto scored really high volumes with its motorcycles, its biggest growth story, however, came from the commercial vehicle segment which includes three-wheeler cargo and passenger carriers.
In the domestic market, in Q4 FY2019, Bajaj Auto recorded 34 percent in its exports (89,349 units). In FY2019, exports grew at 43 percent as compared to the previous year with 383,177 units. However, Bajaj did not achieve the same performance in the domestic market. In Q4 FY2019, sales fell by 19,971 to 102,258 units, a YoY decline of 16 percent. In FY2019, the domestic market figure returned positive with 399,453 units (8% growth). This, the company, claims is its highest ever volume, leading to a market share of 56.9 percent.
With the quadricycle Qute already expanding to more states in the country, Bajaj’s RE and Maxima brand registered a market share of 86.1 percent and 37.2 percent respectively.
Claims leadership in 21 countries
With a presence across 79 countries, Bajaj Auto claims that it has maintained its leadership in 21 countries. The company has recorded its highest-ever export volume by crossing the 2- million-unit mark. This growth was largely aided by recovery in traditional markets like Egypt and Nigeria and new markets like Cambodia, Iraq, Myanmar and Nepal. The total value of its exports came out to $1.642 billion (Rs 11,526,511 crore), a growth of 20 percent over FY2018.
Double-digit profit and volume for KTM
Bajaj Auto International Holdings BV, the Netherlands-based 100 percent subsidiary of Bajaj Auto, holds 47.99 percent stake in KTM AG of Austria at a total investment of 198.1 million euros (Rs 1,219 crore ). The proportionate profit to Bajaj Auto from the performance bike maker was 43.1 million euros (Rs 350 crore ), which has been accounted for in the consolidated results of FY19. With one quarter in arrear, KTM reported a profit of 89.8 million euros (Rs 703 crore), up by 14 percent from FY2018. KTM sold a total of 211,931 units in FY2019, a YOY growth of 11 percent.
FY2020 opens on a strong note for motorcycle sales
With the first 45 days of FY2020 over and the company having reported domestic sales of 205,875 motorcycles (+2.56%) and exports of 160,393 bikes (+7.74%) in April 2019, expect Bajaj Auto to continue being a newsmaker in this fiscal.
The three-wheeler business though is feeling the pressure of the ongoing subdued market sentiment. Domestic sales of 26,004 units (-9.46%) and exports of 29,756 units (-18.79%) in April 2019 mean it will be a few months before sustained traction returns to this segment.
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