More Stories

Informist, Wednesday, May 6, 2026

 

Please click here to read all liners published on this story

--Bajaj Auto: Nigeria automobile market saw some stability in Q4
--CONTEXT: Bajaj Auto mgmt's comments in post-earnings call with analysts
--Bajaj Auto: Sri Lanka, Philippines, Nepal lifted Asia exports Q4
--Bajaj Auto: 125cc+ motorcycles growing faster than 100cc+ segment
--Bajaj Auto: Expect motorcycle segment to grow 7-8% in the near term
--Bajaj Auto: Epicentre of our focus is 150cc+ motorcycles, electric segment
--Bajaj Auto: Partially addressed cost inflation with price hike in April
--Bajaj Auto: Commodity inflation almost hyper in June quarter
--Bajaj Auto: Have taken judicious price action to offset commodity inflation
--Bajaj Auto:Electric 3-wheelers growing fast compared to fossil fuel models
--Bajaj Auto: Bullish about exports, at least in the near term
--Bajaj Auto: Have not been able to fulfil demand for Chetak scooters
--Bajaj Auto: Can make 50,000 Chetaks per month, will work at full capacity
--Bajaj Auto: Feel need to increase Chetak capacity substantially
--Bajaj Auto: Will launch stream of new motorcycles, advance introduction
--Bajaj Auto: Will have new range of 125cc, 150cc+ motorcycles in mkt soon
--Bajaj Auto: Earned production-linked incentives of around INR 9 bln FY26
--Bajaj Auto: Working to expand capacity for three-wheelers

 

By Anand JC and Eshitva Prakash

 

MUMBAI – Flagging surging input costs, India's leading automotive giant, Bajaj Auto Ltd., on Wednesday said the industry is facing a "sharply inflationary" commodity environment. "It is almost hyper, I would say, with the prospect of material availability on the aluminium alloys and polymers front also being very tight," Chief Financial Officer Dinesh Thapar told analysts in a post-earnings conference call.

 

"We are taking decisive actions to secure supplies. Significant inflation is now visible across almost the entire basket, with not just noble metals but also base metals like steel and aluminium participating more actively in this upswing that we are starting to see, most of it, of course, event-driven, leading to the supply shock that we are currently all aware of," Thapar said, referring to the ongoing war in West Asia, which has upended global supply chains for key commodities. 

 

While the prices of steel and copper are up around 15% and 20%, respectively, prices of aluminium and noble metals are up about 35-45%. "Clearly very, very steep and almost unprecedented levels of inflation, but very volatile and dynamic without knowing how long this might last. Taken together, we are currently estimating a material cost inflation impact of approximately 3.5% to 4% of revenue," Thapar said. Bajaj Auto has already hiked prices "judiciously" to offset around 40% of this impact.

 

MOTORCYCLES

The Pune-based automaker is India's second-biggest domestic motorcycle manufacturer with a market share of around 18-24?ross segments. The segment got a nifty fillip from the cut in Goods and Services Tax late last year, helping it register growth of 20% on year in the March quarter. However, the war in West Asia is expected to play spoilsport for the segment going forward.

 

"We have to look forward in a changing scenario, with some new challenges imposed by the war in the Middle East as their operating environment is experiencing significant change," said Rakesh Sharma, freshly elevated to the position of joint managing director at Bajaj Auto. "The demand environment, it has softened in April due to general inflation, increased prices of our vehicles, LPG shortages, manpower migration, and the LPG shortage-led effect on consumer sentiment," Sharma said.

 

Bajaj Auto expects the motorcycle industry to grow 7-9% in the near term, but hopes to perform better than the industry. "The great thing from our point of view is that we expect this growth to come almost entirely from the 125 cc plus segment, and even more so from the 150 cc plus segment, which should grow at twice the industry rate," Sharma said. 

 

Sharma stressed that motorcycles with engine capacity of over 150 cubic centimetres and electric vehicles remain its core focus. "Supply chain difficulties in terms of the LPG shortage, manpower availability, and outbound logistics to overseas markets have impaired availability to service demand by about 10-15%. Hopefully, these will start to resolve themselves over a period of time," Sharma said. Bajaj Auto plans to roll out a new range of motorcycles of 125 cc and over 150 cc by July under the Pulsar brand, apart from other introductions.

 

EXPORTS

Over the recent years, Bajaj Auto has been among India's biggest automobile exporters. This has helped the company offset commodity pressure in recent times, given the rapid depreciation of the rupee against the dollar. The company exported over 600,000 units for the second consecutive quarter in Jan-Mar, helping it book record-high quarterly revenue from its exports business. 

 

Sharma flagged the improvement in Nigeria, which is its largest market in volume terms. "Finally, Nigeria reached some stability in Q4, with volumes crossing 100,000 units to deliver a full-year performance in FY26, which is equal to FY25. While volumes remain below historical peaks, the recovery is encouraging," Sharma said. While he did flag that the government there recently hiked fuel prices by 30%, Nigeria is a net exporter of crude. "But they don't have refining and therefore the fuel prices, which affect the common man...So these two things have to balance out," Sharma said.

 

Its exports in Asia grew in double digits in the March quarter, driven by strength in Sri Lanka, Philippines, and Nepal. In the near term, the company has a bullish view on exports. 

 

CHETAK, 3-WHEELERS

Bajaj Auto operates in the electric scooter segment through its Chetak range of scooters. The company has a market share of around 23% in the segment, emerging as the second-biggest player in India after TVS Motor Co. Ltd. Retail sales of Chetak crossed the 50,000 level in March, a record high. Bajaj Auto began exporting Chetak to Sri Lanka, Philippines, and Nepal in the March quarter.

 

Sharma said the company has not been able to push sales of Chetak to their true potential because of varied reasons such as shortage of rare earth magnets. "We've not been able to fulfil the demand (for Chetak) which has been there for, you know, one reason or the other. Sometimes we also get exasperated that everything is not working in every department and every month," Sharma said. 

 

Bajaj Auto has a capacity to produce around 50,000 units of Chetak per month, which its management feels will be put to use completely. "We have now reached a position where we think a substantive increase in capacity in Chetak is needed," Sharma said. 

 

The company holds the leadership spot in the electric three-wheeler market. Bajaj Auto has seen electric three-wheelers growing much faster than models that are fitted with traditional powertrains. Given the scope for further growth, the company is also looking to ramp up capacities for this segment going forward. 

 

For the March quarter, Bajaj Auto reported a net profit of INR 27.46 billion on revenue of INR 160.06 billion. On Wednesday, its shares closed 2.7% higher at INR 10,319 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.