Bajaj Auto has unveiled its urban electric mobility plans. The company is developing electric vehicles and aims to hit the roads with its electric fleet of two-, three- and four-wheelers by 2020, before the BS-VI norms kick in, Bajaj Auto MD Rajiv Bajaj said. They are developing electric motorcycles, scooter and three-wheelers as well as the electric version of the four-wheeler, Qute. He said the company could be working on an electric motorcycle or electric scooter, or both. He was confident of putting an exceptional global electric two-wheeler brand on the roads before 2020.
Electric vehicles were a risky business as nobody had found a viable way to do it, but not getting into electric vehicles was riskier business, Bajaj said. Apart from electric mobility, a renewed focus on growing volumes in the commute deluxe segment, expansion of its premium bike range with expanded brand offerings from KTM and Triumph, apart from its Pulsar and Dominar range, are the plans for Bajaj Auto for FY19.
Efforts would be intensified to grow in the commuter segment and this would have an impact on the company’s margin for the next three to five years, Bajaj said at the AGM held in Pune on Friday. In the commuter segment, the company grew by 38% in Q1FY19 and is intensifying efforts to take growth to 50% in this segment in the second half of the year. Bajaj said the Qute has finally received all approvals and will start shipping to dealerships. Like it had done with BS-IV, the company would meet BS-VI 2020 emission norms in advance. “We we will be ready one year in advance in three-wheelers and put it on the roads in 2019.”
In the premium segment, Bajaj said between his company and KTM, they are targeting to sell half a million premium bikes in the near future, something not achieved so far by anyone at these price points. Bajaj is working with Triumph on the motorcycle and will sign a final contract with them in the next few weeks, Bajaj said. They were hoping to work on a similar relationship with Triumph like they had with KTM and be equal partners in design and manufacturing, and also explore global markets where Triumph does not have a presence, such as the Indian subcontinent, ASEAN and Latin American countries.
To manage all the growing complexities in the business, Bajaj Auto is reorganising the top leadership team with Rakesh Sharma being appointed the new chief commercial officer at the front end of the organisation.
Q1 PAT up 20.70%
Bajaj Auto reported a 20.70% YoY growth in PAT to Rs 1,115.23 crore on a turnover of Rs 7,823.70 crore, which grew by 33% during Q1FY19. Net sales and operating income was up 36% to Rs 7,419.20 crore. Ebitda margin was at 18.4% . The company’s total sales volumes grew by 38% during the quarter to 12.26 lakh units, with motorcycle sales at 10.29 lakh units and CV sales at 1.96 lakh units. The company exported 5.38 lakh units worth Rs 3,151 crore with a 25% growth in motorcycle exports and 69% in three-wheeler exports during Q1FY19.
Rajiv Bajaj, MD, Bajaj Auto, said their Ebitda at 18% was still the highest in the industry. There was intense pressure from commodities prices, he said. Bajaj Auto’s market share in the domestic motorcycle market was at 16.3% in the quarter compared with 14% in Q1FY18.