InvestorQ : Is it true that Bajaj Auto foresees a smart revival in auto demand in the coming months?
Dilmini Mercia made post

Is it true that Bajaj Auto foresees a smart revival in auto demand in the coming months?

Answer
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Dhwani Mehta answered.
3 months ago


The management of Bajaj Auto has affirmed that it is witnessing a strong revival in demand for two-wheelers in the domestic and international markets. However, 3-wheelers continue to face headwinds. The company still awaits clarity on whether this spurt in demand is just a pent-up demand from previous months or a signal of revival in the two-wheeler industry.

The month of June was significantly better than May and July has been still better than June according to the Bajaj Auto CFO. However, clarity on whether it is just pent up demand will only emerge by August. In the Jun quarter, Bajaj Auto just sold 185,981 units in India, hinting at a 70% fall. However, the 3-wheeler market may only pick-up after credit market revives.

Bajaj top management has confirmed that it is currently running with capacity utilisation of 70% and is running on 50 lakhs manufacturing count against capacity of 63 lakhs. However, the impact has been largely endemic and Bajaj Auto with its product franchise and brand expects to be the first off the hook to start revival of sales.