Bajaj Auto Predicts Rebound in Two-Wheeler Sales

Bajaj Auto forecasts a 6-8% growth in two-wheeler sales for the current fiscal year. The peak sales of 2018-19 could be reached in Q4 of this fiscal or early next year. Rising commodity prices have led to price hikes. Retail financing rebound is a key growth driver.

Bajaj Auto has predicted a 6-8% rise in two-wheeler sales this fiscal year, potentially matching the peak levels of 2018-19 by Q4 or early next year. This announcement was made by Rakesh Sharma, the company's Executive Director, during an earnings call.

The company has had to increase prices due to the rising costs of natural rubber. 'We have taken price hikes on July 1 in both domestic and international markets,' Sharma said, noting the impact to be around 2-3%.

A major factor driving sales is the resurgence of retail financing, which now finances 75% of two-wheeler purchases, up from 65% last year. Sharma highlighted this as a significant growth driver alongside positive market sentiment in both rural and urban areas.