Expecting FY25 to be better than FY24 for exports: Rakesh Sharma, Bajaj Auto
«There is nothing like a divide for two wheelers between rural and urban. Some of the most low-priced vehicles, two wheelers are bought in urban areas and some of the more expensive motorcycles are bought also in rural areas,» says Rakesh Sharma, ED, Bajaj Auto.
Things are looking good. Growth is back. Margins are 20% and market share is intact.
Well, market share has improved. But yes, for the moment, things are looking good. I hope they stay this way.
Historically, we have always seen that rural economy acts as a barometer of the two wheeler demand. But of late, we have seen two wheeler demand coming back despite a slowdown in the rural economy. So, whether I look at the monthly dispatch numbers of Bajaj Auto, TVS or Hero MotoCorp sales are coming back and the rural economy is yet to come back. Why is that history is not repeating itself?
First of all that assumption is flawed to begin with in my opinion. There is nothing like a divide for two wheelers between rural and urban. Some of the most low-priced vehicles, two wheelers are bought in urban areas and some of the more expensive motorcycles are bought also in rural areas. It is about segments. I would rather look at different segments like the 100cc, 125cc, 150cc segments to understand what is happening in the market. But dividing it between rural and urban for us does not make so much sense.
Unlock Leadership Excellence with a Range of CXO Courses
Offering CollegeCourseWebsite
We spoke to you last time and I distinctly remember we had this very engaging
