News By/Courtesy: Anushka Banerjee | 28 Jul 2020 14:02pm IST

HIGHLIGHTS

  • Sinking economy in this wake of COVID-19
  • steady recovery of the two-wheeler automobile market
  • Honda and Bajaj Auto regarding their recovery

While, in this wake of COVID-19, the world economy is sinking, two of the most prominent two-wheeler manufacturing companies claim to have a strong revival in their sales. The top notches claim to have a steady business recovery as compared to the others.

 

"We are seeing month-on-month improvement in sales. There was no sale in April while the decline was very large in May. June was significantly better than May and July is much better than June," Bajaj Auto CFO Soumen Ray told PTI. The demand scenario is coming back pretty sharply and it could be a pent-up demand as well, so the clarity would emerge only in August, he added.

 

When asked if the company expects things to turn around by festive season, he said: "Certainly, hope so, there is no reason why it should not happen. However, we will have to see August. If we have reasonably strong August then we are set for a good festive season." He said that company's Waluj (Aurangabad) plant is operational and there were only a very few workers who were in quarantine due to COVID-19. The factory is currently running with capacity utilization of around 65-70 percent, Ray said.

 

When asked if the company had earmarked any CAPEX on capacity expansion this fiscal, he said: "Our installed capacity is 63 lakh units per annum and right now we are operating at sub 50 lakh. Last year, we did around 48 lakh units so there is no question of putting up additional capacity."

 

On exports, Ray said that almost every market the company caters to has been impacted due to the coronavirus pandemic. "Fortunately, we have an order book and we continue to deliver. In retail terms, we are witnessing similar phenomenon as we are seeing in India. Two-wheelers are coming back much faster than three-wheelers," Ray noted. Bajaj sold over 2,13,000 units in the international markets in the first quarter as compared with 4,71,691 units in the same period last year.

 

Honda, on the other hand, claims that it was the first two-wheeler manufacturer in India to launch and start selling BS-VI models, six months ahead of the deadline in September 2019 with Activa 125. Honda sold 6.5 lakh units of BS-VI two-wheelers in the country in the last financial year, which was the highest among the brands, claims the company.

 

Commenting on this, Yadvinder Singh Guleria, Director, Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd., said, “It’s a matter of great pride for us at Honda, that our 11 advanced BS-VI models have won the vote of confidence & created a new joy of riding amongst customers across India. Truly, it’s #AQuietRevolution from Honda in the BS-VI era as our product portfolio stands out as the Industry’s most diverse starting from 110cc scooters and motorcycles going up to 1100cc premium adventure bike."

 

He also said, "As many customers are now preferring personal mobility for safety and hygiene in the challenging times of new normal, Honda is unlocking new value with its many initiatives like online bookings, attractive retail finance schemes, industry-first up to 6 year’s warranty option, etc. Moving forward, we are confident that millions of Indians will continue to realize their dreams of mobility with Wings of Honda.”

 

 

This article does not intend to hurt the sentiments of any individual, community, sect, or religion etcetera. This article is based purely on the author’s personal opinion and views in the exercise of the Fundamental Rights guaranteed under Article 19(1)(A) and other related laws being enforced in India for the time being.
 

Section Editor: Pushpit Singh | 28 Jul 2020 23:09pm IST


Tags : #honda #bajajauto #automobileindustry #covid19 #lockdown

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