Last year there was a bit of a scarcity in semi conductors and this year it has been taken care of. This has lead to strong growth during the year. Because of their large exports business and since they are the largest exporter in India they witnessed slow growth as of last year because of global uncertainty which lead to a drop in the amount of sales from exports. They also have a very large position in the Indian auto market and are known to be a leader in this market. Fy 23 saw that the covid 19 pandemic was finally behind us but this led to sky rocketing inflation rates and therefore spoiled Bajaj autos exporting business. 

Motorcycle sales are still 3 million units under there all time high which is my opinion is surprising considering that most other things are hitting all time highs. They have 12 product offerings for motorcycles spread across 4 sectors.  For pro biking unfortunately their sales were hindered from lack of equipment. Urbanite is their EV scooter and once again because of the lack of semi conductors they could not produce much and their sales were affected. One thing to note is that during fy 23 sales became 4 times of this compared to fy 22. Three wheelers are still a growing thing and they believe the Indian market is till to recognise the potential of this market. Unlike other years in fy 23 exports were the tough part because of global uncertainty. Despite the challenging year they have made up a few EV designs which include a motorcycle with a twin locking brake system and many other new features. Two more of their designs have also got upgrades which make it easier for the motorcycle to get into corners. 2 new products that they company have made can do 2 more different features. One of them are focused on best performance by making the gear shift easier. One of them is fitted for the more caustic’s driver and it is a low speed EV motorcycle for which the name is enough to know what it does. 

Summary

Bajaj auto is a company mainly focused on motorcycles and exports of those motorcycle and they are starting to get into other businesses like pro biking, three wheeler, EV scooters and they have a very strong R&D team. Fy 23 was a turnaround year because the lack of semi conductors were solved which was a something that was reducing their sales capabilities last year. They are now starting to focus on EV more and more.

Personal thoughts. 

I think first of all that annual report was very short and I am surprised that they did not mention urbanisation because I searched a few things up and it turned out that 7.5 percent of Indians own a car while 68 percent own a motorcycle. Now with urbanisation going to increase obviously the car number will also rise but for the people coming from low class to middle class which will be bulk of the people they are probably going to own a motorcycle to get around India. For the people going from middle class to high middle class or high class they will buy a car. I think that their exports is something that is going to help them once global uncertainty ends but one thing I am wondering is that instead of starting all of these other businesses why not just start cars because then they would have a spread of both things motorcycles and cars.