The June 2020 sales numbers are good for Bajaj Auto and should be compared with the May 2020 numbers and not the June 2019 numbers Rakesh Sharma, Executive Director (ED) at Bajaj Auto told Anil Singhvi in an exclusive interview.

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The sales have recovered considerably in May and June, he said adding that the demand for automobiles have recovered significantly in the second half of June. It has reached around 80-90 per cent, he added.

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This is a good indication for the way forward in July, August and September months, the ED said. If this momentum continues, both the demand and the supply side will reach normalcy, Sharma said.  

The ramp-up in production has been tremendous and dealerships and service centres have now opened. The entire ecosystem including manufacturing plants, vendors and the transportation system have now reached at 100 per cent of their capabilities.

On the domestic front, Sharma expects the demand to pick up as the country enters into Unlockdown 2.0 phase, which was enforced from 1 July.

The demand for two-wheelers have also picked up in urban centres, Sharma said. Initially, the demand was only in the rural areas and in the agriculture sectors, he added. People are realising that two-wheeler is a safe mode of transportation, under the current circumstances, when the coronavirus cases are on the rise.

In rural areas, the purchasing power has slightly improved, which is a positive indicator.

Expressing confidence, Sharma said that there is a likelihood of demand in Q2 FY21 getting ahead of the corresponding quarter in FY20. However, this depends upon how the Covid-19 situation emerges from here, he added.

Sharma also said that the Aurangabad plant is operational despite a large number of cases reported from there. All protocols are being followed. The company conducted contact tracing, test and reporting. It is also educating and training the staff.

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He said that it will be a challenge to effectively handle the situation as the cases are still on the rise. The company is putting a lot of effort into ensuring safety of the people.