Rakesh Sharma, ED, Bajaj Auto, says coming to exports recovery, in the last one or two quarters, we have bottomed out and have also sensed a slightly better flow of funds from overseas, but still have to watch a couple of quarters to see whether there is a substantive and sustainable recovery now well underway.”
There are so many factors to look forward to, new launches in EVs, a recovery in exports, the growth in the CNG motorcycle launch. Let’s begin with the recovery that we have seen in exports, a 10% year-on-year growth. Can you build on this number and if so, which are the markets according to you that will really lead this growth?
Rakesh Sharma: I must say that the exports recovery needs to be still watched for a couple of quarters. It is completely on the back of macroeconomic factors. Happily, in many countries, the informal exchange rate and the formal exchange rate are now finally converging, which allows the banking systems to support international trade though, of course, it is a serious devaluation in many countries which raises the ultimate purchase price and that has to be digested.
So, yes, as the last one or two quarters are suggesting that we have bottomed out and we have also sensed a slightly better flow of funds from overseas, but we will have to still watch a couple of quarters to see whether there is a substantive and sustainable recovery now well underway. Of course, the key contributors there are Africa, Nigeria, Kenya, etc, and in Asia, we had Bangladesh which is a very big market for us, which was also hit, and all of them seem to have recovered. But like I said ..
We have a powerful brand here, Pulsar has crossed Rs 10,000 crore. So, it will probably be across the board, one of the top brands in the country today. We have almost 20 models which serve different sub-segments, starting right from the hesitant young biker to almost a professional biker interested in a very good biking experience and these 20 models are going to be built upon. We have got a very-very full pipeline. When you look at the brand, the spectrum of the models, the pipeline, and the m ..
With the upcoming Bajaj Pulsar 400 launch, what kind of pricing are you targeting? Do you have any range in mind because it is a pretty strong brand and it can help fuel the premium segment sales?
Rakesh Sharma: Well, yes, it is a much awaited introduction, the biggest Pulsar as yet. A lot of the Pulsar loyalists have been pressing us for it. It is still a few months away. And I think we will reveal the pricing perhaps on the day of the launch. So, you will have to wait a little bit for that.
Well, you have also been winning the market share in Chetak, 14% in Q3, if I am not mistaken. Any target that you have set yourself for over there? Any ramp up that you may have planned in sales that you could be working on?
Rakesh Sharma: In Chetak, our focus is really in expanding the portfolio. We have added and upgraded our current portfolio to our current portfolio, in the next couple of months you will again see an addition, widening of the portfolio so that it covers more and more segments. We are pushing forward very hard on the expansion of the network.
In another three months or so from the current 200 odd stores, we should be in 500 plus stores and all that is definitely going to have an impact on sales. We want every month to be better than the previous one. And we want a very strong podium finish over there so that as the sector develops, we can strive for leadership there too.
The FAME subsidy as well was slashed versus the industry expectation of an increase in the amount. I want to know what is your take on that, do you think that that could perhaps dampen sentiment in the EV space?
Rakesh Sharma: I am not so sure whether anyone was expecting an increase in the subsidies, but I think what we have been saying is that more than the quantum of the subsidy, it is the certainty of the regulations and the subsidy regime which must be clarified, which very happily enough at least we have a very clear view for the next four months or so and then of course, we will wait to see what happens to FAME.
This is important for the larger ecosystem of vendors and dealers as well. Fundamentally, it is good that the subsidies are being gradually, they are being winded down, because then the true cost benefit equation is out there for not just the manufacturers, but the customers too and rational decisions can be made on pricing, on purchase, etc, and that is a very-very healthy thing. So, this clarification and the movement towards reduction of subsidies in a stepped manner is quite welcome news.
In the immediate term, there is always a shock and we have seen after the subsidies were slashed last year, the penetration of electric two-wheelers as a percentage of the scooters/two-wheeler population has stagnated. But bear in mind that the basic two-wheeler has also grown quite handsomely this year. So, we are seeing a growth of about 25% to 30% in electric two-wheelers. That may get dampened a little bit. But having said that, it is very clear that the customer is quite switched on to the ..
The other thing is that the input costs are reducing, particularly the lithium-ion cells which go into the batteries, which are a very significant component of the cost. So, I would say that it is still positive. It still makes great economic sense for the customer at today's prices to buy an electric. The growth rates m ..
Source Name : Economic Times