BAJAJ AUTO LTDLong
BajajAuto------------ Investment Idea
Bajaj Auto, the flagship company of Bajaj Group, is a two-wheeler and three-wheeler manufacturing company that exports to 70+ countries across several countries in Latin America, Southeast Asia, and many more. Its headquarter is in Pune, India.
It has acquired 48% of the KTM Brand which manufactures sports and super sports two-wheelers, which was 14% in 2007 when the company first acquired KTM. [1]
KEY POINTS
Brand Reputation
It is the world's third-largest manufacturer of motorcycles and the largest manufacturer of 3-wheelers globally [1]
Segment Performance
Milage Segment (100cc to 125cc)- This segment consists of the product like Bajaj CT, the Platina, and the Pulsar 125.
In FY20, its volume reduced by 17.0% and market share in this segment fell by 20 basis points to 14.3% [2]
It launched KTM RC125 in FY20 to strengthen its presence in 125cc segment [3]
Sports Segment (150cc to 220cc)- This segment consists of the product like Pulsars ranging from 150cc to 220cc and the Avenger
In FY20, its volume falls by 23.5% and increased its market share in the segment to 44.7% from 44.1% in FY2019 [2]
Super-Sports Segment- This segment consists of the product like the entire range of KTMs, the Pulsar RS200, and the Dominar
In FY20, despite industry sales volume declining, its volume grew by 10.9% YoY and market share increased by 2.7 percentage points, from 7.4% in FY2019 to 10.1% in FY2020. [2]
In FY20, it launched Adventure 390 and Husqvarna [3]
The KTM sales in India has grown from 22,627 vehicles in FY15 to 64,058 vehicles in FY20 [3]
Scooter Segment- It is focusing on expanding in the electric vehicle segment with its electric scooter-Chetak, which was launched in FY19.
Three-Wheelers Segment- In FY2020, its three-wheeler sales declined by 14.9% YoY
It export of three-wheelers decreased by 21.6% YoY, with an export market share of 59% [4]
Four-Wheeler Segment- It launched its first quadricycle, Qute in FY19. It has sold 942 vehicles in FY20 and has tied up with uber to increase sales in Bangalore markets [4]
Geography-wise Revenue breakup
Domestic: 58% of Revenue in FY20, which was 60% in FY19 [5]
Its domestic motorcycles market share decreased by 20 basis points to 18.5% in FY20. It was 17.7% in FY16 [6]
Exports
In FY20, Its export grew by 4.4% YoY to 2.1 Million Vehicle. In the Motorcycle segment, its export volume grew by 10.2% YoY to 1.8 Million Vehicle with a market share of 59.6% in FY20, which in FY16 it was 66.1%.
It is currently has present in 79 countries globally [4] [6]
Multiple Plants
It has three manufacturing facilities across India, 1 each at Waluj, Chakan, Pantnagar with a total capacity of 6.3 Million Vehicle p.a in FY20, which was 6.06 Million Vehicle p.a in FY15 [7] [8]
New Manufacturing Facility
In FY20, it signed an MoU with Maharastra Government to set up a plant in Chakan to manufacture high-end KTM, Husqvarna, Triumph, and Chetak(Electric Scooter)[9]
R&D
The Company Spent 1.6% of its Revenue on R&D in FY20, which was 1.4% in FY14 [10] [11]
Its R&D department has upgraded 23 motorcycle variants and 12 commercial vehicle variants to BS-VI during the last two-quarters of FY2020 [12]
It has acquired 48% of the KTM Brand which manufactures sports and super sports two-wheelers, which was 14% in 2007 when the company first acquired KTM. [1]
KEY POINTS
Brand Reputation
It is the world's third-largest manufacturer of motorcycles and the largest manufacturer of 3-wheelers globally [1]
Segment Performance
Milage Segment (100cc to 125cc)- This segment consists of the product like Bajaj CT, the Platina, and the Pulsar 125.
In FY20, its volume reduced by 17.0% and market share in this segment fell by 20 basis points to 14.3% [2]
It launched KTM RC125 in FY20 to strengthen its presence in 125cc segment [3]
Sports Segment (150cc to 220cc)- This segment consists of the product like Pulsars ranging from 150cc to 220cc and the Avenger
In FY20, its volume falls by 23.5% and increased its market share in the segment to 44.7% from 44.1% in FY2019 [2]
Super-Sports Segment- This segment consists of the product like the entire range of KTMs, the Pulsar RS200, and the Dominar
In FY20, despite industry sales volume declining, its volume grew by 10.9% YoY and market share increased by 2.7 percentage points, from 7.4% in FY2019 to 10.1% in FY2020. [2]
In FY20, it launched Adventure 390 and Husqvarna [3]
The KTM sales in India has grown from 22,627 vehicles in FY15 to 64,058 vehicles in FY20 [3]
Scooter Segment- It is focusing on expanding in the electric vehicle segment with its electric scooter-Chetak, which was launched in FY19.
Three-Wheelers Segment- In FY2020, its three-wheeler sales declined by 14.9% YoY
It export of three-wheelers decreased by 21.6% YoY, with an export market share of 59% [4]
Four-Wheeler Segment- It launched its first quadricycle, Qute in FY19. It has sold 942 vehicles in FY20 and has tied up with uber to increase sales in Bangalore markets [4]
Geography-wise Revenue breakup
Domestic: 58% of Revenue in FY20, which was 60% in FY19 [5]
Its domestic motorcycles market share decreased by 20 basis points to 18.5% in FY20. It was 17.7% in FY16 [6]
Exports
In FY20, Its export grew by 4.4% YoY to 2.1 Million Vehicle. In the Motorcycle segment, its export volume grew by 10.2% YoY to 1.8 Million Vehicle with a market share of 59.6% in FY20, which in FY16 it was 66.1%.
It is currently has present in 79 countries globally [4] [6]
Multiple Plants
It has three manufacturing facilities across India, 1 each at Waluj, Chakan, Pantnagar with a total capacity of 6.3 Million Vehicle p.a in FY20, which was 6.06 Million Vehicle p.a in FY15 [7] [8]
New Manufacturing Facility
In FY20, it signed an MoU with Maharastra Government to set up a plant in Chakan to manufacture high-end KTM, Husqvarna, Triumph, and Chetak(Electric Scooter)[9]
R&D
The Company Spent 1.6% of its Revenue on R&D in FY20, which was 1.4% in FY14 [10] [11]
Its R&D department has upgraded 23 motorcycle variants and 12 commercial vehicle variants to BS-VI during the last two-quarters of FY2020 [12]
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