Stock Market

Nigeria sales won’t come back in a hurry: Rajiv Bajaj

Speaking to CNBC-TV18 Rajiv Bajaj, MD of Bajaj Auto said industry didn’t have a good run last year during Onam.

Sales remained flat during the Onam period. “This time, sales were up 10 percent which is good,”  he said, adding that he is seeing positive growth in the double-digit space. The manner in which the industry is building on dealerships is anticipation of far higher growth, he said.

The bigger picture for the company is exports. On the exports front, I have a better picture, not a nice one, he said, adding that from October last year, exports took a downturn. In the first half of last year, the two-wheeler company did 1 million vehicle sales. In that sense from October the base effect will catch on, and exports will look like it will be good, he said.

He also highlighted how there have been ups and downs in several markets.

“The biggest issue for us is Nigeria, where were doing 40,000 motorocyles a month and now we are down to 15,000.” He said it was hard to predict what might happen.

In the foreseeable future, on the other hand, the company has had a good run in the domestic market. “We picked up 5-6 percent share in a year. We had good launches during October and November. As a result of these launches, our domestic motorcycle launches will move up by 40,000 vehicles a month.”

The short story is Nigeria is not coming back in a hurry, he said. “Exports will not hit 160-170,000 for the next six months at least,” he said.

Transcript to follow…