Bajaj Auto’s executive director Rakesh Sharma, on June 1, said export for them is a substantial order book and they need to keep servicing. He was talking to CNBC-TV18 about the company’s earnings for the March-ended quarter.
Earlier in the day, two and three-wheeler manufacturer Bajaj Auto reported a sharp 114 percent growth in its total vehicle sales for May at 2,71,862 units. The firm had sold 127,128 vehicles in May last year.
“Export, which this month also crossed 200,000 units, is a substantive order book which we have to keep servicing. So, it is because of the export business that we keep moving and overall we don’t feel the need to close any of our three plants,” Sharma said.
Speaking on the state of inventory during the second wave of the pandemic, he said, “Due to poor offtake in April and May, the industry and us, we are sitting on large inventory but that is when compared to the current retail, which is low.”
The Bajaj Auto executive director was, however, said that they are not looking to reduce inventory as they expect the situation to get better as soon as the coronavirus second wave starts to fade.
“The experience of last year has been that as soon as the COVID situation recedes and this time depending on how aggressively the vaccination programme advances, there is an anticipation of a quick bounce back. That’s the reason we have not looked at aggressively reducing inventory.”
For the entire management interview, watch the video