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Informist, Wednesday, Aug. 6, 2025

 

--Bajaj Auto: Focussing on 125cc motorcycles in entry-level segment 

--Bajaj Auto: Market share of Chetak Electric scooter in Q1 21% vs 12% yr ago 

--CONTEXT: Comments by Bajaj Auto mgmt in post-earnings analyst concall 

--Bajaj Auto: See capex for rest of FY26 at INR 6 bln to INR 7 bln 

--Bajaj Auto: On track to expand Brazil plant capacity to 50,000 units FY26 

--Bajaj Auto: May see cost pressure in Jul-Sept due to commodity inflation 

--Bajaj Auto: May take pricing action to mitigate cost pressure 

--Bajaj Auto: Large urban markets witnessing slow demand

 

By Narayana Krishna and Arya S. Biju

 

HYDERABAD - Bajaj Auto Ltd. on Wednesday said the company is working on cost reduction and pricing action in the September quarter for its products, as it expects cost pressures due to rising commodity prices. "Looking ahead into the next quarter, we're beginning to see some cost pressures across commodities, notably in aluminium, platinum and copper. That said, our ongoing cost reduction programme, we continue to deliver benefits and taken some pricing actions. That's broadly expected to offset the inflation," the company management said in a post-earnings conference call.

 

Earlier in the day, the Pune-based automaker reported a net profit of INR 20.96 billion for the June quarter, up 5.4% on year and 2.3% on quarter. Its revenues for the quarter rose 5.5% on year and 3.6% on quarter to INR 125.84 billion. Bajaj Auto said it may take some more time to get clarity on overall demand revival in the domestic market and some large urban markets are still witnessing slow demand.

 

The company is bullish on growth of its electric scooter Chetak. For the June quarter, Chetak's market share in e-scooter segment was up at 21% against 12% a year ago. Though there is a risk of rare earth magnets supply that may hamper production, the company is confident of this model's growth.

 

"Our electric two-wheeler Chetak...the industry continues to average close to 100,000 units per month (in sales), growing over 30% year-on-year. Chetak has more than doubled its volumes over the same period and contributed nearly 50% to the industry's overall incremental volumes," Bajaj Auto said.

 

The management said the company remains focused on 125cc and above capacity motorcycles as this segment continued to perform better than the 100cc segment. "Product and pricing interventions were initiated towards the end of March and they have started to show positive results with a sequential improvement in market share in Q1 of about three percentage points in the 125cc plus segment resulting in an overall market share of 15%," it said.

 

"We will remain focused on growing our share in 125cc plus segment through concentration of our resources and efforts driving both product interventions and tactical support as needed in this segment."

 

The company is on track to increase production capacity at Brazil plant to 50,000 units in the current financial year, which was at 7,000 units in Apr-Jun. Bajaj Auto expects INR 6 billion to INR 7 billion capital expenditure for the rest of this financial year.

 

Bajaj Auto shares closed the session at INR 8,178.50 on the National Stock Exchange Wednesday, down 0.6%.  End

 

Edited by Vandana Hingorani

 

 

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