Industry Profile: Indian automobile industry is one of the largest and most competitive in the world. In FY 15-16 production total was 23.96 million vehicles. The sector accounts for 7.1 percent of the GDP of India, out of which 81% is the Two-wheeler market. Indian automotive aftermarket is estimated to grow at around 10-15 percent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, creates 65 million additional jobs, and contribute over 12 percent to India’s Gross Domestic Product. Maruti in Car and Hero Moto Corp is the leader in the Two-wheeler market. Passenger Vehicle holding 13% market. Maruti Suzuki expects the Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. Mr. Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is an important market for the company in terms of volumes and as a hub of small products for exports to 92 countries. Like many companies trying to increase revenue, the rural market is significant for further growth. India is also one of the leading exporters of automobiles and has strong export growth expectations for the near future. In April-March 2016, overall automobile exports grew by 1.91 percent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 percent, 16.97 percent, and 0.97 percent, respectively, in April-March 2016 over April-March 2015. The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion from April 2000 to September 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP). Several automobile manufacturers, from global majors such as Audi to Indian companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the possibilities of introducing driverless self-driven cars to India.
Company Profile: The company is the world’s sixth-largest manufacturer of two-wheelers. Bajaj Auto is India’s largest exporter of motorcycles and three-wheelers. Bajaj Auto’s exports accounted for approx. 35% of its total sales. 47% of its exports are made to Africa. Boxer, one of the leading products of Bajaj, the motorcycle is the largest selling single brand in Africa. its two wheeler includes Avenger 220 Cruise Desert Gold Edition, Avenger 220 Cruise, Avenger 220 Street, Avenger 150 Street, CT100, CT100B, Dominar 400, Discover 125, Platina Comfortec, Pulsar 135LS, Pulsar 150, Pulsar 180, Pulsar 220F, Pulsar AS150, Pulsar NS200, Pulsar AS200, Pulsar NS160, Pulsar RS200, V15, V12. Three-wheelers are RE Compact, RE Compact 4S, RE Optima, and RE Maxima. The company also manufactures cars with the name Bajaj Quote.
Shareholding pattern: BSE Data
Financials and ratios : [table id=71 /]
Future prospectus: There was news about Bajaj Buying Ducati. It may or may not takes place, but the Triumph deal was sufficiently essential to tackle the challenge of Royale Enfield. Triumph is the largest British motorcycle manufacturer. So with the technology of triumph and Manufacturing facilities of Bajaj Chakan are going to be necessary.
