Bajaj Auto aims to sustain domestic biz momentum, targets export number recovery

Bajaj Auto aims to sustain its business momentum in the Indian market in the current financial year. The homegrown two-wheeler major is also planning to expand its production capacity for new businesses as the company expects demand to remain robust in the FY2025, revealed Bajaj Auto's Chairman Niraj Bajaj.

Addressing the company's shareholders in the brand's Annual Report for 2023-24, Bajaj noted that the auto company would also aim for a recovery in its export numbers, PTI has reported. Speaking to the shareholders, Bajaj said, "It is anticipated that India, now the fastest growing economy in the world, will achieve upwards of seven per cent real GDP growth in FY2024, and various forecasts expect this buoyancy to continue in FY2025." He further added that with a stable CPI inflation at around five per cent, Bajaj Auto envisages a double-digit nominal GDP growth in this fiscal. "In such a milieu and barring any unforeseen event, I would expect domestic demand to continue to pave the way for another year of growth up ahead," Bajaj further said.

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Elaborating on the focus areas, the Bajaj Auto Chairman stated that the auto company aims to sustain momentum in its domestic business and continue to drive growth across all segments. Besides that, the Pune-based automaker also looks to navigate the challenging international landscape and stay the course on recovering our export volumes.

Bajaj Auto taking a multipronged growth approach

Bajaj Auto is taking a multipronged approach to achieve its growth target in FY25. The company is planning to expand production capacity, capabilities and retail and service network for its new businesses, which include Chetak electric scooters, electric three-wheelers and Triumph motorcycles, the company Chairman informed the shareholders.

Commenting on the sales performance in FY24 fiscal, Bajaj noted that a strong domestic retail performance more than made up for muted exports which continued to be impacted by the challenging context in overseas markets. He also stated that the auto company had to navigate continued rough macroeconomic conditions across its key markets in the last fiscal.

However, Bajaj stated that the balance sheet of the company remains very healthy with surplus cash and cash equivalent as of March 31, 2024, standing at ₹16,386 crore, after making capital investments of ₹800 crore and paying a significant ₹8,900 crore to shareholders between dividend and the share buyback.

Bajaj said that this financial position allows the company to invest sufficiently for its competitive and sustainable future growth as well as reward its shareholders from time to time.

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