Despite a slowdown in two-wheeler sales, Bajaj Auto Ltd. has posted a net profit of Rs 1.75 billion (US$41 million) in the first quarter of this fiscal.
Following a restructuring which split the manufacturing and financial services businesses into separate firms, Bajaj Auto relisted in May this year. The company’s net sales for the quarter amounted to Rs 23.11 billion.
Bajaj sold 620,095 motorcycles, scooters and three-wheelers in the first quarter of this fiscal, an increase of 8.5 percent over the same period last year. The company, which expects two-wheeler sales to be flat during 2008-09, plans to launch four new 125cc bikes, weaning consumers away from lower-capacity, lower-margin 100cc motorcycles.
Bajaj Auto Limited (BAL) has decided to produce its first four-wheeler light commercial vehicle – the PV1500 – at its manufacturing facility at Waluj, near Aurangabad. This LCV, which is expected to hit the market by mid-2009, will be designed and developed in-house, by BAL’s own technical and R&D team.
At one time, Bajaj used to produce various components for its two-wheelers at its Waluj factory. The sheds where these components used to be made are now not in use, since components are sourced from outside. The company may use these sheds to set up assembly lines for the PV1500.
With a payload capacity of one tonne, the PV1500 will go up against the Tata Ace. To source components for their first four-wheeler LCV, Bajaj is also likely to set up a vendor park at the Waluj, where suppliers will be encouraged to set up operations
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