In the midst of economic challenges due to the COVID-19 pandemic and subsequent countrywide lockdown, Bajaj Auto has emerged as India's largest two-wheeler and three-wheeler manufacturer, measured in terms of revenue. In FY 2019-20, Bajaj Auto posted revenues of ₹ 29,919 crore with operating EBITDA (earnings before interest, taxes, depreciation and amortization) margins of 17.6 per cent at ₹ 5,253 crore and profit before tax (PBT) of ₹ 6,580 crore. Bajaj Auto has clocked a compounded annual growth rate (CAGR) of 10 per cent over the last decade (2010-2020), with revenues moving up from ₹ 11,509 crore in FY 2009-10 to ₹ 29,919 crore in FY 2019-20, a statement from Bajaj Auto said.
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"While FY 2019-20 was indeed a challenging year, we are delighted to note that not only have we emerged as the overall leader in our segment, we have also put in place several initiatives that will build momentum. This achievement is testimony to our unwavering focus and relentless pursuit of our three pronged strategy - using our R&D to develop innovative products and create differentiated brands; building a global business and leveraging principles of TPM to simplify operations and deliver top class quality. Despite the uncertainties surrounding the immediate future, we are confident that our strategic path will serve our ambitions of global leadership and business success," said Rakesh Sharma, Executive Director, Bajaj Auto.
"Our reach in global markets coupled with a diverse & evolving product portfolio has helped us de-risk our business as we are not overtly reliant on any one geography or product. Consequently, our revenues and profits are not dependent on any specific sets of products or geography. Our strong operating performance is a combination of our export performance, product mix and Forex, which allow us several levers to protect our industry leading margins," said Soumen Ray, CFO, Bajaj Auto.
Bajaj Auto continues to lead India's automobile exports, accounting for over 50 per cent of the country's two-wheeler and three-wheeler exports with a turnover of ₹ 11,845 crore. In FY 2019-2020, 47 per cent of Bajaj Auto's production was exported to over 79 countries. So far, Bajaj Auto has exported a cumulative 15 lakh vehicles till date, and has become one of the most visible Indian brands across the globe. Over the last decade, Bajaj Auto's earned over $ 13 billion of foreign exchange.
Bajaj Auto's growth and presence in India and in global markets has been on the back of its own brands as well as its highly successful partnership with KTM. The Bajaj Auto - KTM alliance has enabled KTM AG to become the largest European motorcycle manufacturer. New products co-designed with KTM and manufactured at Bajaj Auto's Chakan plant near Pune have opened new product market segments for this partnership. Bajaj Auto has now further expanded the franchise through the KTM 125 range and has also introduced another premium brand from the KTM stable - Husqvarna - for the discerning Indian customer.
In FY 2019-20 a non-equity alliance was announced between Triumph of UK with an aim of co-developing new products to address new segments and geographies across the world. In October 2019, Bajaj Auto brought back the iconic Chetak scooter in an all-new electric avatar. Bookings opened in January 2020 in Pune and Bangalore and deliveries commenced in early March 2020.