Exclusive: In talk with Anil Singhvi, Bajaj Auto ED Rakesh Sharma says 2021 will be year of new launches

The year of 2020 has been challenging for businesses including the Indian automobile sector. As we are at the fag end, there are already expectations building-up for the new year. In today’s edition of News Par Views show, Zee Business Managing Editor Anil Singhvi spoke to Executive Director (ED) of Bajaj Auto, Rakesh Sharma. (#NewsParViews) 

Sharma said 2021 should be a better year for Bajaj Auto, while suggesting that the current economic situation  did not indicate that there will be a significant growth in the motorcycle segment. 

He said that in the pre-covid phase, during the financial year 2019-20, there was already a 7-8 per cent dip in this segment from the 2018-19 sales. The industry was already in decline before Covid-19 pandemic and things only worsened after the start of the lockdown. Things are stabilising now and getting back to the pre-covid levels, he added. 

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The problem also was that consumers have faced a situation where prices had been rising over the last three years, he said. The costs were on the rise on multiple fronts, be it regulatory, insurance or raw material cost. The prices have gone up by 35-40 per cent over the last 3 years, Sharma said. This has an impact and triggers a slowdown.  

Bajaj Auto is maintaining a cautious stance and it is unlikely that there will be a double-digit growth like 2-3 years ago.  

As for three wheelers, there is still some struggle as the traffic has not restored to the pre-Covid levels. Therefore, even the financiers are also not too active to finance this segment, he added. Their ability to pay EMIs has still not recovered. There could be another six months to recovery in this segment, Sharma averred. 

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#ZBizExclusive | ऑटो कंपनियों के लिए बेहतर रह सकता है साल 2021... #NewsParViews पर बजाज ऑटो के ED राकेश शर्मा ने कहा- जल्द करेंगे कीमतें बढ़ाने का एलान

देखिए पूरा वीडियो: https://t.co/P34Qwdz8Pm#BajajAuto #RakeshSharma @AnilSinghvi_ @bajaj_ltd pic.twitter.com/MhK76Lq4NT

— Zee Business (@ZeeBusiness) December 21, 2020

On price rise 

Sharma said that Bajaj Auto may also have to pass on the increasing costs to the customers as most automobile companies are doing. The company is still analysing the quantum of this increase, the ED said.   

On new launches 

Sharma said that Bajaj Auto's focus initially has been on the transition from BS-IV to BS-VI. Then Covid came as a disrupter. Now that phase is over and the company intends to bring many launches.       

On company’s growth strategy: 

Sharma said that Bajaj Auto strategy is to offer premiumisation in the products. The strategy will be completely product related, he said.