Bajaj Auto has refuted any March production reductions. The company’s executive director, Rakesh Sharma, expressed scepticism about the veracity of the reports alleging that production would be reduced.
According to Sharma, “We anticipate sales in March to be at the same level as January and February of this year.”
According to him, these reports appear to be some selective comparisons and assumed numbers.
Sharma said that the outlook for exports remained cautious and at a lower level because of the availability of US dollars as well as problems in Nigeria. These weren’t production cuts; production levels were in line with expected sales.
In January ’23, Bajaj Auto reported a 46% decrease in two-wheeler exports to one lakh units and a 53% decrease in three-wheeler exports to 12,046 units. Between April 22 and January 2023, exports of two- and three-wheeled vehicles fell by 23% and 40%, respectively.
He said the company’s Q3FY23 results-related outlook remained unaltered. The company had anticipated that Nigeria, their biggest export market, would remain weak and unstable until the elections were over and a smooth transition to the new administration had taken place, as well as until the effects of their demonetization had subsided.
Normalcy was anticipated to return sometime in May or June, first in Africa and then in Latin America. Sharma predicted that the pendulum would swing, and when it did, the company would be well-positioned to take advantage of the uptick in demand because the main factors were still in place. The young population in Africa, the growing urbanization and road network, and the inadequate public transportation system all point to a doubling of penetration in the following five to seven years.
