Bechara Bajaj? Bajaj had clocked sales of about 250,000 units. That’s an astonishing 35% fall.

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Bajaj Auto is in a quandary of sorts. While the financial meltdown has affected almost every other auto major, this two-wheeler major’s cup of woes perhaps runs deeper. A 4Ps B&M Insight...

A while back, Rajiv Bajaj had talked to 4Ps B&M and made a forecast that should have sent a chill down the spine of Pankaj Munjal. His famous (neither first, nor last) words were: “Presently 61% of motorcycle volumes come from the 100cc segment and we feel that this segment will reduce to 25% in the next few years.” During that interaction, Rajiv Bajaj, who has an M.S. from Warwick University, had also talked about how the low margins in the entry level 100cc motorcycles were not worth the production and marketing effort. We presume he must have discussed this grand strategy with his brother Sanjiv Bajaj who now handles the financial services arm of the Bajaj Empire. What we really don’t know is if Sanjiv talked to Rajiv about what they don’t teach at Harvard Business School (Sanjiv is an alumnus of Harvard). We also presume Pankaj Munjal was convinced there was no chill running down his spine.

In fact, the message that the market has now sent Rajiv is quite spine chilling. In October 2008, Bajaj Auto notched up two wheeler sales of about 160,000 units. Last year in October, Bajaj had clocked sales of about 250,000 units. That’s an astonishing 35% fall. Sure, these are bad times and India Inc. is being hounded and haunted by the repercussions of the global financial meltdown. Sure even rival Hero Honda and Pankaj Munjal have been affected badly. How badly? Sales in October 2008 for Hero Honda are just 3.5% down at about 365,000 units as compared to last year. Yes! It is 35% versus 3.5%. In fact, combined sales of Bajaj and the number three TVS last October were higher than that of Hero Honda. This year, Hero Honda has sold more than the two put together.

Not that head honchos at Hero Honda are doing cartwheels in jubilation. They too are worried. According to Anil Dua, SVP (Marketing & Sales), Hero Honda Motors, “With the festive season being over now, we do expect to see a slowdown in the industry with the prevailing credit squeeze and interest rates taking their toll on consumer sentiments. Keeping this in mind, we have consciously restricted our dispatch sales in October.”


For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

ZEE BUSINESS BEST B SCHOOL SURVEY


For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...