Expect trajectory of retail sales to increase in Jan, Feb & March, says Bajaj Auto CFO
Bajaj Auto posted its December auto sales numbers. It is lower than the polls. Soumen Ray, chief financial officer at Bajaj Auto shared his views and outlook.
Bajaj Auto's December auto sales numbers were lower than expectations. The company's overall sales for the month of December came stood at 3.36 lakh units compared to 4.03 lakh units in November. Domestic sales for December were 1.53 lakh units compared to 2.07 lakh units in November. However, month on month exports were flat at 1.82 lakh units compared to 1.95 lakh units in November.
Discussing the outlook going forward, Soumen Ray, chief financial officer of the company said the pressure on numbers may not continue in coming months. In fact, there is expectation of some pre-buying ahead of BS-VI transition, he said.
"In the month of December, the retail sales have gone back to the trends that were tracking in Q2. However, let us see how Q4 pans out. Hopefully, there would be some buoyancy which would come back towards the later part of Q4,” he said in an interview with CNBC-TV18.
“There has been increase in footfalls in the sales outlets and we think by the time we come towards end of January or beginning of February, this would increase,” he added.
Exports, he said has been a great story, although December to December it may look a little flat. "In Q3, we have done the highest ever exports, primarily backed by motorcycles in all three geographies – Africa, Latin America and also in Southeast Asia," he said.
The domestic commercial vehicle (CV) growth too is coming back, he said, adding that there was a very strong growth in December, basis which they now have a positive growth in the third quarter versus decline seen in Q1 and Q2. "So both export motorcycles and domestic CVs are doing pretty well in December, and overall in the quarter,” he said.
Although it would be difficult to predict growth, he is of the belief that the trajectory of retail sales per month would increase in January over December and sequentially, in February and March. “Q4 growth will be a little better primarily driven by the pre-buying that may happen because of BS-VI transition,” he noted.
“New innovations are delivering better results cutting across price segments,” he said.
With regards to market share, he said, “We should be in the range of 19-20 percent market share in domestic retail segment."
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