Bajaj Auto chairman Rahul Bajaj has expressed concerns over the company’s flat topline growth and a 4-percentage-point drop in domestic market share. “Why should your company, with its outstanding offerings of motorcycles, lose 4 percentage points of domestic market share to 20% in 2013-14,” Bajaj asked in the company’s 2013-14 annual report. He wants to see the streets zipping with Pulsars, Discovers, Platinas and KTM Dukes, and the return of dominance of ‘Hamara Bajaj’, just like his scooters did at one point.
Bajaj was confident that Rajiv Bajaj, MD, would take decisions that were in the best long-term interest of the company. He has applauded the management team for responding to the challenging environment and delivering the company’s highest Ebitda. “If the Bajaj Auto management could produce superior Ebitda margins in a challenging year, it is best placed in the industry to delivery higher sales and a greater market share when the headwinds disappear,” Bajaj said. Bajaj ended FY14 with an 8.7% fall in sales volumes to 3.87 million units and a flat operating income.
The chairman hopes demand for motorcycles will rise if consumer confidence returns and translates into purchases held back over the last few years, especially with the new government at the helm.
- Varun Gandhi Under Attack Over Defence Deals: Here’s How
- This Diwali, Let Blind Students Brighten Up your Homes With Candles & Diyas
- CBI Files Supplementary Chargesheet In Sheena Bora Murder Case
- Soha Ali Khan And Vir Das Starrer 31st October Audience Reaction
- Sahara Chief Subrata Roy’s Parole Extended Till November 28
- Simple Tips To Secure Your Debit Card From Fraudsters
- New Zealand & India Team Being Welcomed In Chandigarh
- Mumbai Call Centre Scam: All You Need To Know
- Jammu Kashmir Chief Minister Mehbooba Mufti Appeals To Police: Here’s What She Said
- Shocker From Ahmedabad: Find Out What Happened
- Bigg Boss 10 Day 3 Review: Celebs Fail To Do Well in First Task
- Airtel Offers 10GB Data At Rs 259 For New 4G Smartphone Users
- Aamir Khan Starrer Dangal’s Trailer Launched: First Impressions
- TMC Supporters Attack BJP Leader Babul Supriyo
- Sri Lankan Navy Apprehends 20 Indian Fishermen
Bajaj said there was a sense of optimism in the air and, like many in industry and the corporate world, he hoped that the new government, headed by Prime Minister Narendra Modi and his Cabinet colleagues, would focus on removing impediments to growth, allowing the corporate sector to regain its entrepreneurial ‘animal spirits’ that had all but disappeared in the last few years under the Congress-led UPA.
“It will be a difficult task and much needs to be done, especially in the first six months to a year of governance to demonstrate definitive growth intent. I wish Modi and his team well but with a warning: many believed that when the UPA-II government was formed in 2009, with a stronger mandate and without the drag-down presence of the communist parties, there would be a burst of much-needed reform. As we know, these did not occur. The new NDA government must, therefore, ensure that this is not another false dawn. India cannot afford that mistake yet again,” Bajaj warns.
fe Bureau | The Financial Express