The Hindu Business Line : Bajaj Auto expects to grow at 17-20 pc after April

We do not think that the rural surge, which we are anticipating might happen immediately, in the next four-five months. So for the next four-five months, we will be moderate in terms of growth rate.

BAJAJ Auto hopes to grow by 17-20 per cent from April onwards. Auto sales numbers for November have started coming in. Bajaj Auto has clocked sales of 1.83 lakh units versus 1.82 lakh units.

The Vice-President of the two-wheeler marketing division of Bajaj Auto, Mr S. Sridhar, says that the company is looking at a minimum of 10-12 per cent industry growth from January onwards. As far as Bajaj Auto is concerned, the company's growth may touch 17-20 per cent from April, he adds.

Excerpts from CNBC-TV18's exclusive interview with Mr Sridhar:

How are the margins looking for this quarter and the next?

As far as Bajaj Auto is concerned, our executive model is in heavy demand now. This trend is positive for Bajaj.

On the entire motorcycle space, you have seen about 1.5 per cent increase. But it was a little below market expectations. What kind of sales do you hope to clock in future?

There are a couple of things that we should keep in mind. First, the entire comparison has been made with last year's numbers. In the last year, between the first five months and second seven months, there was an increase to an extent of 22 per cent in the industry. Last year, we had Deepawali in November. That made a difference. But other than November-December, we should expect a minimum of 10-12 per cent growth for the industry in January to March.

We just saw the Q2 GDP numbers. It is better than what most optimistic economists and analysts had expected. Also the monsoon has been good. So are you likely to be surprised on the upside?

We do not think that the rural surge, which we are anticipating might happen immediately, in the next four-five months. So for the next four-five months, we will be moderate in terms of growth rate. We really expect big growth from April onwards.

What kind of numbers can you give for that big growth?

It should be something like 17-20 per cent growth rate, on the back of another 18-19 per cent. That is what we will be registering for this current financial year.

For the entire year, you are expecting 18 per cent. Is that right?

It should be 18 per cent for the industry, from April onwards.

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