Bajaj Auto is looking to foray into electric vehicle space by 2020 with two and three wheeler products, said Rajiv Bajaj, managing director of the company, adding that "electric scooters or motorcycles would be an attractive space to be in".
Bajaj said that the company is aiming at 20-25 percent market share going forward. “We have moved from 15-20 percent and would like to move from 20-25 percent over the next 12 months,” he said.
To gain 10 percent market share in two years would be remarkable for Bajaj Auto as 10 percent is 3 times the absolute market share of Yamaha after 35 years in India, he said.
When asked if the next few months look difficult because of the global environment, he said instead they look interesting and exciting on back of "some interesting trends" that are emerging.
“Over this financial year the three-tier structure of the industry which was 20 percent for entry level, 60 percent in value/mid-level and 20 percent at premium level has moved to 30-50-20 percent and is on its way to move to 35-40-25 percent structure,” he said. "This means the middle level market is getting squeezed out, which in turn is very good for Bajaj because we compete at the bottom and at the top level."
With regards to exports, he said the markets continue to be uncertain but the company by the year-end would have exceeded exporting over 2 million units across in a calendar year to 70 countries. “Exports would represent 40 percent of the company’s sales and so who can be a better ambassador for Make in India than Bajaj Auto?” he said.
According to him, the best way to overcome challenges in the export market is by entering new markets and sharpening the product strategy.
For the fourth quarter, the growth would be muted for the industry in terms of primary sales from companies to dealership although for retail it would continue at 10 percent year-on-year growth, he said.
The biggest challenge for the industry would be to make the transition of the two norms related to safety and emission over the next 12 months, said Bajaj.