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business | IST

June sales numbers pleasantly surprising; will announce price hike in next 48-72 hours: Bajaj Auto

Bajaj Auto posted strong sales for the month of June, Rakesh Sharma, Executive Director at Bajaj Auto, discussed the numbers with CNBC-TV18.

Bajaj Auto posted strong sales for the month of June, Rakesh Sharma, Executive Director at Bajaj Auto, discussed the numbers with CNBC-TV18.
“I would say that the numbers for June have been pleasantly surprising. They indicate some kind of strength, resilience in the demand coming back in the short-term,” he said.
On the cost front, he added that ever since April, there has been a push on the commodity and precious metal side, which has been pushing up cost for the company.
“We have been passing them on. We have passed them on in April, there is price increase announcement expected in the next 48-72 hours from our side,” he stated.
“In a calibrated manner, spread over three-six months, we should be able to recover the rise in costs,” he added.
Demand came rushing back in June. “For the next quarter, we should see the same trend continue, we should see pent-up demand coming back. In the short-term, release of pent-up demand will aid us,” he said.
Exports are holding steady at 2,00,000 plus units. There is a little bit of disappointment in exports in June purely because of logistics.
“Even though we are paying 5 times the freight from here to Latin America, compared to what it was a year ago, there is shortage of containers and we are about 10-12 percent lower than all the orders. Exports are holding steady at about 2,00,000 plus for some time,” he shared.
According to him, the supply chain side is a management issue. “Hopefully, we should be able to get on top of it and the subsequent quarter should be holding easily at 2,00,000 plus,” he said.
The company is looking optimistically at Nigeria.
As far as scooters are concerned, he said, “Rising petrol prices is one of the factors that led to the dampening of growth in the scooters segment. We have observed that there is a movement away from scooters into motorcycles.”
For the full interview, watch the accompanying video.