Bajaj Auto recently launched a buyback of up to 40,000 equity shares for a consideration of up to ₹4,000 crore. The company's Managing Director Rajiv Bajaj says the buyback has received tremendous response and said that he believes ₹12,000 to be a fair value for Bajaj Auto. JP Morgan had recently issued an overweight call on Bajaj Auto and raised the target price from ₹8,275 to ₹8,900. Speaking exclusively to CNBC-TV18 Rajiv Bajaj said that the company will embark on a substantial product offensive and capacity expansion from next quarter and new energy vehicles will take centre stage.
Bajaj Auto’s CNG bet: Bajaj Auto has 70% to 80% market share in the CNG three-wheeler space. The company had earlier said they will bring a CNG motorcycle to the market in calendar year 2025. But, Rajiv Bajaj told CNBC-TV18 that the company has now decided to prepone the launch by a full year and will now bring it to Indian markets within the next three months. The company is currently launching one CNG motorcycle but may consider bringing it in displacements between 100cc and 160cc. (Image: Bajaj)
Strategy for Chetak electric vehicle: Bajaj Auto is among the top three electric two-wheeler makers in India and currently makes 10,000 to 13,000 units per month. Rajiv Bajaj said that the new Chetak scooters will be launched in the next quarter and the goal would be to triple the sales footprint and double manufacturing capacity for electric two-wheelers. Chetak is currently sold across 160 touchpoints in the country. “We aspire to double production to twenty thousand units per month by Q1 of FY25,” said Bajaj.
Biggest Pulsar ever: CNBC-TV18 has exclusively accessed a picture of the biggest Pulsar ever that is set to be launched. Pulsar is a crown jewel for Bajaj Auto and the company has launched the Pulsar in different displacements over the last two decades. The new Pulsar will also be launched in Q1 of FY25 and is expected to have a new body design, larger radiator, the biggest Pulsar engine and upside down forks.
Triumph ramp up plan: Bajaj Auto has been stretching itself to deliver 6,000 units in a quarter. The company has a plan to expand capacity to increase production to 30,000 units per quarter in the next 6-8 months. That’s not all, a new Triumph motorcycle in the 400cc segment will be launched in FY25.
Electric Market Share: Electric three-wheeler market share Bajaj Auto wants to leverage its leadership in the CNG three-wheeler space by ramping up capacity to produce electric three-wheeler transport and cargo vehicles. The company is focusing on scaling up the electric three-wheeler supply chain and doubling capacity from 2,000 to 4,000 units by Q1 of FY25.
Cue from slowing electric vehicles: Reacting to the slowdown in electric car sales, especially in countries which have paused subsidies, Bajaj said that this just shows that one cannot keep distorting growth with subsidies. “The voice of reason has been ignored by government and industry bodies and the motivation for electric vehicles will always depend on what consumers want”, he said. Bajaj also said that he sees strong growth potential in electric two and three-wheelers and the company will continue focusing on them irrespective of the subsidy scenario.
The Bajaj Auto MD said that the bulk of the capex deployment in FY25 will go towards EVs, CNG vehicles, new energy portfolio, the 125cc segment and growing exports in existing and new markets.