Bajaj Auto’s Unbreakable Streak: 20% Margins Hold Strong Amid Market Chaos

Image Source: The Tax Heaven

Bajaj Auto continues to demonstrate resilience in a volatile market, maintaining a 20% operational margin for six straight quarters. Executive Director Rakesh Sharma attributes this success to strategic diversification across EVs, three-wheelers, motorcycles, and international markets.

Key Highlights:

EV Growth: Electric vehicles now contribute 21% to domestic revenue, up from 10% last year, despite subsidy reductions.
Global Expansion: Latin America has emerged as Bajaj Auto’s largest market among emerging economies, surpassing Africa in value terms.
Domestic Market Trends: The 125cc+ motorcycle segment is driving industry growth at nearly twice the average rate.
Cost Management: While noble metals have seen a slight price increase, base metals have declined, keeping the overall cost environment stable.
Africa’s Recovery: The region remains underperforming but is showing signs of stabilization, with Bajaj Auto carefully managing stock levels.

Sharma emphasized Bajaj Auto’s versatile business model, balancing risks across multiple revenue streams. The company remains cautiously optimistic about future growth, particularly in the EV sector and Latin American markets.

Sources: Economic Times, CNBC TV18