Bajaj Auto sees exports outstripping domestic sales soon

22 Oct 2011

Bajaj Auto, the country's second-largest two-wheeler maker, said on Friday that the company is sharpening its focus on exports, and expects these to outgrow domestic sales in the near future. Currently, the overseas market contributes over 36 per cent to its total vehicle sales, including two-wheelers and three-wheelers.

''As compared to other auto companies, our share of exports is much higher. Exports will outstrip domestic sales in the near future for Bajaj Auto,'' said Rajiv Bajaj, managing director, Bajaj Auto, in Mumbai.

Bajaj Auto also plans to invest Rs500 crore to add capacity and develop a new variant of its popular Pulsar motorbike over the next 18 months.

"We are investing Rs500 crore till FY 2013 for expansion. We had already spent Rs150 crore last year," Bajaj Auto finance president Kevin D'sa told reporters a day after announcing the Q2 numbers.

The proposed capex will include development cost of the new Pulsar, which will be based on a new technology, and will be launched in December / January.

Bajaj Auto currently has its footprint in 50 countries and is looking at newer geographies to increase its export share. Regions like Africa and Latin America are major contributors to company's exports.