Bajaj Auto has admitted that any projections would be difficult as the lag effect of the pandemic is still not clear. However, Bajaj Auto is witnessing quicker recovery in motorcycle sales. For example, the demand for motorcycles was up to 85% in July on YOY basis. Sales showed a sharp revival in urban pockets, apart from rural and semi-urban markets.

In fact, Bajaj Auto had cut down inventory to just 30 days and is now planning to build inventory beyond that considering robust demand. However, Bajaj Auto has admitted that the 3-wheeler segment had been impacted very sharply and recovery may take longer. 3-wheeler demand was impacted by falling road traffic and schools and offices being shut.

The KTM bikes continue to drive export performance for Bajaj Auto. In fact, the demand for KTM bikes has bounced back strongly in Europe in the April-June quarter, which also happens to be the peak sales season for these bikes. The Jun-20 quarter was marked by uneven production schedules due to plant shutdown and lost sales.