The country's second largest two-wheeler maker Bajaj Auto on Friday reported 25 per cent increase in its motorcycle sales at 3,31,967 units in November.
The company had sold 2,65,036 units in the corresponding month last year, Bajaj Auto Ltd (BAL) said in a statement.
Total vehicle sales of the company during last month stood at 3,74,477 units compared to 2,99,231 units in the same period a year ago, a growth of 25 per cent, it said.
Exports during the month stood at 1,29,256 units compared to 90,869 units in November 2010, a growth of 42 per cent.
Commercial vehicle sales witnessed a growth of 24 per cent at 42,510 during the month as against 34,195 in November last year, BAL said.
Arvind wins Motocross
Aravind K P of Team TVS Racing became the first Indian rider to win a motocross championship abroad when he recently won this year’s Sri Lanka Association of Racing Drivers and Riders (SLARDAR) Championship 2011. Championship winner, Aravind K P of Team TVS Racing, who finished with a total of 73 points, along with TVS Racing, Advisor Racing – R&D, Arvind Pangaonkar were felicitated at a glittering ceremony held recently.
“It was a tremendous experience riding in Sri Lanka. I have learnt a lot during this event as it was a great platform for me to fine tune my riding skills. I have emerged as a much better rider after this event. I am overjoyed to have finished on top of the Sri Lanka Association of Racing Drivers and Riders (SLARDAR) championship 2011” Aravind said on receiving the championship trophy.
Aravind, who fought off 21 riders, including teammates Santosh CS, HK Pradeep and 2010 UAM Asian champion from Japan Tomoya Suzuki for the title, also won himself a fully-paid trip to watch the Dakar rally later this year. Pangaonkar was all praise for the SLARDAR Championship stating that it was among the best conducted events that he has witnessed. He appreciated the fantastic tracks that brought out the best in both the rider and their machines. “Such tracks compel the rider to push the limit and force him to excel. It coerces him to raise the bar in order to win.” Pangaonkar said.
“It was a tremendous experience riding in Sri Lanka. I have learnt a lot during this event as it was a great platform for me to fine tune my riding skills. I have emerged as a much better rider after this event. I am overjoyed to have finished on top of the Sri Lanka Association of Racing Drivers and Riders (SLARDAR) championship 2011” Aravind said on receiving the championship trophy.
Aravind, who fought off 21 riders, including teammates Santosh CS, HK Pradeep and 2010 UAM Asian champion from Japan Tomoya Suzuki for the title, also won himself a fully-paid trip to watch the Dakar rally later this year. Pangaonkar was all praise for the SLARDAR Championship stating that it was among the best conducted events that he has witnessed. He appreciated the fantastic tracks that brought out the best in both the rider and their machines. “Such tracks compel the rider to push the limit and force him to excel. It coerces him to raise the bar in order to win.” Pangaonkar said.
Mahindra Racing picks Sarath Kumar
Mahindra Racing has chosen Sarath Kumar for the Italian Motorcycle Racing Championship 2012.
Sarath, a 19-year-old from Chennai, will be part of the team that will have a second rider in Italian Riccardo Moretti, who has been taking part in the Italian championship since 2007 and won the title in 2009 with five wins and five pole position in six races.
Sarath will be given opportunities for test runs in January-February and small modifications may be made.
The first race will be run on March 25 at Mugello and thereafter seven more rounds will be run at Imola, Monza, Mugello, Misano and on October 14 at Vallelunga.
Sarath, a 19-year-old from Chennai, will be part of the team that will have a second rider in Italian Riccardo Moretti, who has been taking part in the Italian championship since 2007 and won the title in 2009 with five wins and five pole position in six races.
Sarath will be given opportunities for test runs in January-February and small modifications may be made.
The first race will be run on March 25 at Mugello and thereafter seven more rounds will be run at Imola, Monza, Mugello, Misano and on October 14 at Vallelunga.
Rajiv Bajaj dismisses slowdown concerns
‘These cycles are inevitable and if you cannot take it, you have no business to be in business'
Mr Rajiv Bajaj is not unduly concerned about the prevailing slowdown trends and believes his company will continue its good growth run both here and abroad. “These cycles are inevitable and if you cannot take it, you have no business to be in business. The strength of a company's strategy is visible at the down of a cycle and this is where we are confident of holding our own,” the Managing Director of Bajaj Auto told Business Line.
The company has targeted 20 per cent growth for this fiscal, which translates into a little over 4.5 million bikes and three-wheelers. The present momentum indicates things are on course with exports taking up nearly 40 per cent of business.
From a time when its sales were little to write home about, Bajaj Auto has staged a strong comeback over the last two years. This has been the result of a brand-led strategy, which has seen the Pulsar and Discover emerge as the key growth drivers in bikes along with the RE-branded three-wheelers.
This has operated in tandem with a focused back-end plan where fixed costs account for a mere five per cent of the overall costing structure. “Be it good or bad times, this model will ensure that we are on track to post 20 per cent EBITDA consistently,” Mr Bajaj said.
‘Less is More'
From his point of view, companies must be profitable by the end of the day so that every associate, right from the employees and shareholders to dealers and ancillary suppliers, benefits in the process. “This is what good capitalism is all about but there is not enough going around. Neither is there enough pressure on companies to be profitable,” Mr Bajaj added.
Bajaj Auto's minimalist approach, where only a handful of brands are now integral to the business, has been a result of the ‘less is more' principle. This has seen some radical decisions being taken in the recent past, which included exiting scooters and shutting down the Akurdi plant near Pune.
The move to bid adieu to scooters raised the hackles of sentimentalists and old-timers to whom this business was instantly synonymous with the company and the ‘Hamara Bajaj' slogan. However, it was clear that the market for motorcycles was much larger. The move has paid off with the Pulsar and Discover (and the Boxer sold in Africa) contributing to a substantial part of the international business.
Going forward, Bajaj Auto is gearing up to showcase its new engine technology in the coming weeks which will be part of the Pulsar and Discover range eventually.
Terming it the ‘next big step' after the DTS-i technology, the company says it is part of the ‘innovation for mass consumption' strategy to help grow its bike numbers in India and abroad .
Mr Rajiv Bajaj is not unduly concerned about the prevailing slowdown trends and believes his company will continue its good growth run both here and abroad. “These cycles are inevitable and if you cannot take it, you have no business to be in business. The strength of a company's strategy is visible at the down of a cycle and this is where we are confident of holding our own,” the Managing Director of Bajaj Auto told Business Line.
The company has targeted 20 per cent growth for this fiscal, which translates into a little over 4.5 million bikes and three-wheelers. The present momentum indicates things are on course with exports taking up nearly 40 per cent of business.
From a time when its sales were little to write home about, Bajaj Auto has staged a strong comeback over the last two years. This has been the result of a brand-led strategy, which has seen the Pulsar and Discover emerge as the key growth drivers in bikes along with the RE-branded three-wheelers.
This has operated in tandem with a focused back-end plan where fixed costs account for a mere five per cent of the overall costing structure. “Be it good or bad times, this model will ensure that we are on track to post 20 per cent EBITDA consistently,” Mr Bajaj said.
‘Less is More'
From his point of view, companies must be profitable by the end of the day so that every associate, right from the employees and shareholders to dealers and ancillary suppliers, benefits in the process. “This is what good capitalism is all about but there is not enough going around. Neither is there enough pressure on companies to be profitable,” Mr Bajaj added.
Bajaj Auto's minimalist approach, where only a handful of brands are now integral to the business, has been a result of the ‘less is more' principle. This has seen some radical decisions being taken in the recent past, which included exiting scooters and shutting down the Akurdi plant near Pune.
The move to bid adieu to scooters raised the hackles of sentimentalists and old-timers to whom this business was instantly synonymous with the company and the ‘Hamara Bajaj' slogan. However, it was clear that the market for motorcycles was much larger. The move has paid off with the Pulsar and Discover (and the Boxer sold in Africa) contributing to a substantial part of the international business.
Going forward, Bajaj Auto is gearing up to showcase its new engine technology in the coming weeks which will be part of the Pulsar and Discover range eventually.
Terming it the ‘next big step' after the DTS-i technology, the company says it is part of the ‘innovation for mass consumption' strategy to help grow its bike numbers in India and abroad .
Auto sector: A mixed bag
What’s happening in the auto sector is evident from the manner in which they report numbers. Those who have seen a deceleration in sales have only reported absolute sales numbers for the month of November, while those who have clocked good growth have gone to town with it. Maruti Suzuki's communiqué, for instance, merely says it sold a total of 91,772 vehicles in November, which includes 8,902 units for export. Domestic sales have fallen 19.2 per cent annually. While this was expected due to the production problems at its factory, analysts believe it will continue to post weak numbers in the second half, too.
Going forward, analysts expect the current trends to hold up. However, growth will moderate to 10 per cent or near about in the second half. Sridhar Chandrasekhar, head, Crisil Research, says: “With Maruti’s production returning to normal, the revival in car sales growth is likely to be sustained. We expect a seven-nine per cent growth in car sales volumes over the remainder of the fiscal, and thus maintain our forecast for 2011-12 at zero-three per cent."
Despite Maruti’s performance, the sector as a whole continues to show mixed trends. Mahindra & Mahindra’s auto sales jumped 53 per cent in November at 40,722 units, compared to the 26,666 units it sold in November 2010. Bucking industry trends, domestic sales stood at 38,159 units during November, as against 25,166 units during November 2010, an increase of 52 per cent. The four-wheeler commercial segment (which includes the passenger and load categories) clocked 74 per cent growth at 13,362 units.
As has been the case so far, while passenger car sales are showing a slowdown, two-wheelers and commercial vehicles are doing brisk business. Though players like TVS and Hero MotoCorp have not met the expectations of analysts, they have shown healthy growth in sales. Hero MotoCorp, for instance, reported a 27.6 per cent increase in sales at 536,772 units in November. However, analysts say the company was expected to clock 543,000 units a month. Tata Motors, too, reported a very good set of numbers for November.
Still, it has been the only company to show year-on-year contraction in sales this year. Total vehicle sales for it have jumped 40.6 per cent to 76,823 units, compared to the 54,622 units the company sold in the same period last year. Sales of the Nano and Indica, which had dramatically slowed, also picked up in November. In the commercial vehicles segment, too, the company has expectedly done well in the light commercial vehicle segment. It sold 44,737 CVs in the domestic market, against 35,079 units in the same period last year. Of the total CV sales, light commercial vehicle sales comprised 28,673 units, a growth of 40.7 per cent.
Going forward, analysts expect the current trends to hold up. However, growth will moderate to 10 per cent or near about in the second half. Sridhar Chandrasekhar, head, Crisil Research, says: “With Maruti’s production returning to normal, the revival in car sales growth is likely to be sustained. We expect a seven-nine per cent growth in car sales volumes over the remainder of the fiscal, and thus maintain our forecast for 2011-12 at zero-three per cent."
Despite Maruti’s performance, the sector as a whole continues to show mixed trends. Mahindra & Mahindra’s auto sales jumped 53 per cent in November at 40,722 units, compared to the 26,666 units it sold in November 2010. Bucking industry trends, domestic sales stood at 38,159 units during November, as against 25,166 units during November 2010, an increase of 52 per cent. The four-wheeler commercial segment (which includes the passenger and load categories) clocked 74 per cent growth at 13,362 units.
As has been the case so far, while passenger car sales are showing a slowdown, two-wheelers and commercial vehicles are doing brisk business. Though players like TVS and Hero MotoCorp have not met the expectations of analysts, they have shown healthy growth in sales. Hero MotoCorp, for instance, reported a 27.6 per cent increase in sales at 536,772 units in November. However, analysts say the company was expected to clock 543,000 units a month. Tata Motors, too, reported a very good set of numbers for November.
Still, it has been the only company to show year-on-year contraction in sales this year. Total vehicle sales for it have jumped 40.6 per cent to 76,823 units, compared to the 54,622 units the company sold in the same period last year. Sales of the Nano and Indica, which had dramatically slowed, also picked up in November. In the commercial vehicles segment, too, the company has expectedly done well in the light commercial vehicle segment. It sold 44,737 CVs in the domestic market, against 35,079 units in the same period last year. Of the total CV sales, light commercial vehicle sales comprised 28,673 units, a growth of 40.7 per cent.
Dena Bank signs MoU with TVS Motors
Dena Bank will provide loan upto 90% of the cost of vehicle (on road) to eligible borrowers on merits for purchase of TVS 3 wheeler passenger auto rickshaws at a very attractive rate of interest.
Dena Bank signed an MOU with TVS Motor Company Ltd. on 1st December, 2011 for financing Three Wheelers manufactured by M/s TVS Motor Company Ltd. The MOU was signed in the presence of Shri A.K. Dutt, Executive Director, Dena Bank at a function held in Mumbai.
The MOU was signed by M. K. Sharma, General Manager, Dena Bank and Shri K. Srinivasan, Vice President, TVS Motor Company Ltd. in the presence of Mr. Ashok Dutt Executive Director, Dena Bank.
A.K. Dutt said MOU will help the Bank to increase their finance to Priority sector advances besides achieving the social objective of the Bank to provide collateral free loan to Micro and Small Enterprises throughout the country.
Dena Bank will provide loan upto 90% of the cost of vehicle (on road) to eligible borrowers on merits for purchase of TVS 3 wheeler passenger auto rickshaws at a very attractive rate of interest.
TVS Motor has pan India presence and with this tie up they will be able to increase their market share especially in the states of Gujarat and Maharashtra, where Dena Bank is having very strong presence.
On the day of signing of MOU, Dena Bank has given in-principle clearance for 101 proposals for purchase of TVS ‘King’ 3 wheelers.
Dena Bank signed an MOU with TVS Motor Company Ltd. on 1st December, 2011 for financing Three Wheelers manufactured by M/s TVS Motor Company Ltd. The MOU was signed in the presence of Shri A.K. Dutt, Executive Director, Dena Bank at a function held in Mumbai.
The MOU was signed by M. K. Sharma, General Manager, Dena Bank and Shri K. Srinivasan, Vice President, TVS Motor Company Ltd. in the presence of Mr. Ashok Dutt Executive Director, Dena Bank.
A.K. Dutt said MOU will help the Bank to increase their finance to Priority sector advances besides achieving the social objective of the Bank to provide collateral free loan to Micro and Small Enterprises throughout the country.
Dena Bank will provide loan upto 90% of the cost of vehicle (on road) to eligible borrowers on merits for purchase of TVS 3 wheeler passenger auto rickshaws at a very attractive rate of interest.
TVS Motor has pan India presence and with this tie up they will be able to increase their market share especially in the states of Gujarat and Maharashtra, where Dena Bank is having very strong presence.
On the day of signing of MOU, Dena Bank has given in-principle clearance for 101 proposals for purchase of TVS ‘King’ 3 wheelers.
TVS Motor posts 12% growth in sales
TVS Motor Company registered total sales of 175,535 units in November 2011 compared to 157,041 units in the corresponding month of the previous year, a growth of 12%.
The company's cumulative sales for the period April to November 2011 grew by 12% with sales of 1,499,612 units against 1,341,106 units recorded in the previous comparable period.
As a result of lower overall economic growth, high inflation, increased fuel prices and interest rates, we expect some moderation in the growth of two wheelers over the next three to six months. Hence we did not want to increase trade stocks. Consequently billing for the month is lower than our initial indication. However the Company is confident of achieving the annual growth target of 15%.
Two Wheeler
Total two wheeler sales grew by 12% with sales of 172,829 units in November 2011 in comparison with 153,882 units recorded in November 2010.
Scooter sales increased by 22% with sales of 44,301 units compared to 36,233 units recorded in November 2010. Motorcycles recorded sales of 62,608 units in November 2011 against 62,995 units in November 2010.
Domestic two wheeler sales of the company reported a growth of 8% with sales of 150,406 units in November 2011 against 139,541 units reported in November 2010.
Exports
Exports grew by 53% registering total sales of 24,271 units in November 2011 against 15,850 units in the same month of the previous year. The company exported 22,423 units of two wheelers in November 2011 in comparison with 14,341 units in November 2010, a growth of 56%.
Three Wheeler
The company sold 2,706 units of three wheelers in November 2011 against 3,159 units in the same month of the previous year. Cumulative three wheeler sales for the period of April 2011 to November 2011 grew by 21% with sales of 29,524 units compared to 24,363 units registered during the same period of the previous year.
The company's cumulative sales for the period April to November 2011 grew by 12% with sales of 1,499,612 units against 1,341,106 units recorded in the previous comparable period.
As a result of lower overall economic growth, high inflation, increased fuel prices and interest rates, we expect some moderation in the growth of two wheelers over the next three to six months. Hence we did not want to increase trade stocks. Consequently billing for the month is lower than our initial indication. However the Company is confident of achieving the annual growth target of 15%.
Two Wheeler
Total two wheeler sales grew by 12% with sales of 172,829 units in November 2011 in comparison with 153,882 units recorded in November 2010.
Scooter sales increased by 22% with sales of 44,301 units compared to 36,233 units recorded in November 2010. Motorcycles recorded sales of 62,608 units in November 2011 against 62,995 units in November 2010.
Domestic two wheeler sales of the company reported a growth of 8% with sales of 150,406 units in November 2011 against 139,541 units reported in November 2010.
Exports
Exports grew by 53% registering total sales of 24,271 units in November 2011 against 15,850 units in the same month of the previous year. The company exported 22,423 units of two wheelers in November 2011 in comparison with 14,341 units in November 2010, a growth of 56%.
Three Wheeler
The company sold 2,706 units of three wheelers in November 2011 against 3,159 units in the same month of the previous year. Cumulative three wheeler sales for the period of April 2011 to November 2011 grew by 21% with sales of 29,524 units compared to 24,363 units registered during the same period of the previous year.