Bajaj Auto may launch electric two-wheeler by 2020, says Rajiv Bajaj

A Tesla on two-wheels from the Bajaj camp is for sure to come when the time is right, maybe in 2020, said Rajiv Bajaj, Managing Director, Bajaj Auto.

However, Bajaj is not sure as of now, whether it will be a scooter or a motorcycle.

Speaking exclusively to CNBC-TV18, he said, "Everything is going well for the company and all verticals are doing well."

Talking on Nigerian market, he said motorcycle sales in the country led to growth in exports in the fourth quarter. He added, when Nigerian market does well, Bajaj also does well.

The three-wheeler business is developing a long and strong tail in the export market. There is a good demand from Iran, Philippines and Combodia. So, for exports in June quarter are also likely to post 30% growth, he said.

Moreover, the domestic three-wheeler market is also on a very strong footing, growing 80% year to date and hoping to grow similarly in this quarter as well, said Bajaj.

For motorcycle market, we seemed to have found our groove again, led by strong performances from Pulsar, CT and Discover, he said.

Bajaj said 10% volume growth in FY19 is likely, unless something unusual happens later in the year.

On the margin front, he agreed that higher commodity prices and interest rates etc. would put a wee bit pressure on it but if volumes were good then they could be manageable.

Scale is in our favour. Moreover, forex is also in their favour because they had budgeted for Rs 66 to the dollar, whereas currently it is a rupee and half more, he said.

Talking about Dominar, he said the sales for that have exceeded Royal Enfield outside of India. But in domestic market, it might take a bit more time to make an impact. Currently, they are at 3,000-4,000 per month for Dominar, but the target of 10,000 per month is very much on the card.

Pune-based motorcycle giant is also very upbeat on new launches in the entry segment, where they have Platina, Discover and CT and in the sport segment, they have Pulsar, Avenger and Dominar.

Bajaj is also excited about the electric three-wheeler launch, adding that, it could catapult their growth if the government is really serious about promoting electric vehicles.

"Motorcycle is our area of strength and so focus on that continues," he added.

The company is also looking forward to the approval for the quadricycle 'Qute'.

Bajaj Auto has a robust sales for the month of May. The total sales were up 30% at 4.07 lakh units against 3.14 lakh units for the same quarter last fiscal.

The year-on-year (YoY) domestic sales were up 29% at 2.24 lakh units against 1.74 lakh units. The YoY exports in the quarter were up 31%.