Bajaj Auto To Enter Honda Led Brazil In 2014
Globalization is very important for any manufacturer. Our daily used commodities have a mixture of local as well as international content. For example we use a Samsung smart-phone, a Lenovo laptop, an Apple iPad, a Sony TV, a Butterfly/Preethi home appliance, a Hero bike and a Suzuki car. For a country like ours, exports are being pushed to the maximum limits while imports face many curbs. This is done to strengthen our economy and encourage Indian manufacturers.
Because of the intensified export promotions, Indian automobile companies have spread their wings into international markets. We have already seen the well-established markets of Tata Motors and Mahindra across all the populated continents. The inertia is still on a roll as Hero entered the US market just a week ago. Now is the time for Bajaj Auto to further expand its export wings from 57 countries to more.
Bajaj Auto has announced its plans for Brazil. The company already has presence in Latin America with Argentina, Peru Colombia, etc. as trading centers. Brazil attracted this Indian auto giant with its impressive emerging automobile market. Bajaj is right now laying strategies to counter Honda which is having a major market share in the country and is expecting to sell 7 lakh units over a period of 18 months.
The export business contributes to 35% of the company’s revenue. The major market for the export business is Africa; which has a significant share of 47% of total exports. Bajaj is expecting the export share to rise to 50% in the coming years. The company’s market value is estimated to be Rs. 52,000 crores. The previous quarter fetched Bajaj Auto the highest ever turnover of Rs. 2909 crores, highest ever exports of 2,24,334 vehicles and highest ever net profit of Rs. 403 crores. With these massive figures on the charts, Bajaj is certainly set to enter into newer markets as well as newer segments.
