Bajaj Auto is poised to maintain its momentum in the domestic market and expand production capacity for its new ventures in the current fiscal year, driven by robust demand expectations, according to Chairman Niraj Bajaj. In the company’s Annual Report for 2023-24, he also highlighted plans for a recovery in export volumes.
“It is anticipated that India, now the fastest growing economy in the world, will achieve upwards of 7% real GDP growth in FY2024, and various forecasts expect this buoyancy to continue in FY2025,” Bajaj said.
With stable CPI inflation at around 5%, the company envisages double-digit nominal GDP growth, he added.
“In such a milieu and barring any unforeseen event, I would expect domestic demand to continue to pave the way for another year of growth up ahead,” Bajaj said.
Elaborating on the focus areas, Bajaj mentioned that the company aims to sustain momentum in its domestic business and continue to drive growth across all segments. The Pune-based firm also seeks to “navigate the challenging international landscape and stay the course on recovering our export volumes,” Bajaj said.
Bajaj Auto is set to expand capacity, capabilities, and network for its new businesses, which include Chetak electric scooters, electric three-wheelers, and Triumph motorcycles.
Commenting on the last fiscal year, Bajaj noted that a strong domestic performance compensated for muted exports, which continued to be impacted by challenging conditions in key overseas markets. The company had to navigate through rough macroeconomic conditions across its key markets.
The balance sheet of the company remains very healthy with surplus cash and cash equivalents as of March 31, 2024, standing at INR 16,386 crore. This is after making capital investments of INR 800 crore and paying a significant INR 8,900 crore to shareholders between dividend and share buyback.
This financial position allows the company to invest sufficiently for its competitive and sustainable future growth as well as reward its shareholders from time to time, Bajaj added.
