Bajaj Auto. 2019 sales are falling down, penalized by India and Latam

bajaj auto

Bajaj Auto is struggling in the 2019, hit by the decline of the domestic market. Indeed in the first nine months of the year global sales have been 2.8 million, down 2.7%. Sales are declining in Latin America as well, while in the CIS markets, where the brand entered last year, the trend is outstanding.

 

2019 Global Sales Figures

The start of the 2019 was again very favorable for the Indian company, despite the two biggest markets in the World – India and China – declined.

Indeed, preliminary data for the first nine months of the 2019 report global Bajaj’s sales at 2.8 million sales worldwide (any KTM model produced/sold by Bajaj in NOT included), down 2.7% from the correspondent period last year.

Two-third of sales have been done in India, with sales at 1.97 million units, down 3.8% and this negative data is impacting hard on the global result.

Sales are fast growing in C.I.S. countries, where the brand has started operating last year. In the first nine month of the year, with over 3.5000 units, figures which are already the double than the entire 2018.

The negative market trend in Latin America are penalizing the sales, with regional volumes declined 5.1% and even in Africa sales are declining, due to the fall of the Egyptian market (where Bajaj is market leader).

Global Sales Recent Year’s Trend

Bajaj Auto is not simply one of the biggest two/three-wheeler manufacturer in the World, but is one of the fastest growing as well, thanks to a very active development plan allowing to cover very well the South Hemisphere of the globe, leading in sales in Africa and South America and playing a key rule in the Central South Asia. 

According to data we have collected in over 80 countries, in the 2018 Bajaj Auto hit the new All Time Record sales, first time over the 3.5 million units, doing better than on the previous record year, the 2015, with 3.25 million sales. While international operations grew up, there are no doubts that the record was built up on the phenomenal growth in place the domestic market, India, which not only is the largest motorcycles market in the World, but even one of the fastest growing with 2018 volumes boomed at 22 million units. In 2018, Bajaj Auto improved Indian sales by 400k  outperforming the market.

The second most relevant market for this brand is Sri Lanka, were it plays the rule of market leader with 2018 sales for the first time over 0.3 million units. The third market is in Africa, Egypt, and in the 2018 is was reported stable with Bajaj sales around the 150.000 units. The fourth market is Colombia with 130.452 sales last year and the third is Nigeria, with over 117.000 sales. 

 

Brand Heritage

Bajaj Auto is an Indian brand specialized on manufacturing two-wheeler and three-wheeler, headquartered in Pune, India, world leader in the three-wheeler segment. The company name is Bajaj Auto Limited and is one of the 25 companies of the Bajaj Group.

Bajaj Auto Limited is one of the 25 companies of the Bajaj Group (founded in 1944 by Jamnala Bajaj) which actually has a presence in diverse businesses such as Electronics, Life Insurance, General Insurance, financial services and other.

The company is well-known for its R&D product development process engineering and low-cost manufacturing skills. The company is the largest exporter of two and three-wheelers in the country.

In 1959 Bajaj Auto Ltd. obtained from the Government of India the licence to manufacture two-wheelers and three-wheelers. Thanks to a partnership with the Italian Piaggio, they obtained the licence to manufacture in India the already famous Piaggio Vespa and started to produce the Bajaj Vespa 150 scooter.

In 1960 Baja became a public limited company and the plant produced the 100.000 vehicles ten years later, in the 1970, while the record of 100.000 units sold in a single financial year was hit in the 1977.

In the 1984 the company joined a partnership with the Japanese Kawasaki (which ended only in the 2017) to develop, produce sell and assist two-wheels in the Indian market.

In the 1985 it was opened a second plant (in Waluj near Aurangabad) to support the strong demand and already in the following year it was hit the milestone of half a million sales in a single financial year, becoming the biggest 100% Indian company in the sector. That year at the scooter and rickshaw production it was added the motorcycles line up.

In November 2007 Bajaj Auto International Holdings BV a wholly owned subsidiary company acquired 14.51% equity stake in KTM Power Sports AG of Austria Europe’s second largest sport motorcycle manufacturer for Rs 345 crore.

In 2012 Bajaj Auto tied up with Japan’s Kawasaki in Indonesia, lately extended to the Philippines.

On 8 August 2017 Bajaj Auto and Triumph Motorcycles UK announced global partnership whereby Bajaj will gain access to the iconic Triumph brand and its great motorcycles enabling it to offer a wider range of motorcycles within its domestic market and other international markets.

Operations

Actually Bajaj has three operating plants in India, located in Waluj, Chakan (Maharashtra) and Pant Nagar (Uttaranchal) with a total annual capacity of 3.9 million units, employing (2014) 9.144 people.

 

Distribution

Bajaj Auto is India’s largest exporter of motorcycles and three-wheelers with export accounted for approximately 30% of revenues.

Actually they distribute in the following countries:

AFRICA

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