Bajaj Auto wants to improve sales in the export market and to do so the company aims to set up operations in other countries. Bajaj Auto sees potential in the South East Asian markets. One of the countries that the two-wheeler brand is targeting is Thailand.
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Rajiv Bajaj, Managing Director, Bajaj Auto said at the company’s recently concluded Annual General Meeting that Thailand is the centre of gravity for new two- and four-wheelers. Thus, the two-wheeler brand is planning to have sales, design and R&D personnel in Thailand. An assembly plant in the country which would help save cost on taxes, and would allow the brand to sell its products at competitive prices.
Bajaj Auto recently announced it year-on-year sales numbers for the month of August 2018. The company reported 4,37,092 unit sales in August 2018 versus 3,35,031 units in the corresponding month last year, registering a growth of 30 percent. The overall domestic business witnessed a growth of 27 percent while the exports grew by 35 percent.
In fact, the company registered highest ever month sales in the export market for its Commercial Vehicle segment which witnessed a 67 percent growth.
Bajaj Auto plans to commence shipments of products to Thailand in next couple of months. Rajiv Bajaj said at the meeting that the company would have a marketing and sales office in Bangkok to address that region.:
We will have a marketing and sales office in Bangkok to address that region. We wish to have a design office there. We think Thailand is the centre of gravity for new two- and four-wheelers. We need to gauge the pulse of the market, so will have to place some of our own sales, design and R&D personnel there.
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The company also targets an increase in its reach in the Association of Southeast Asian Nations (ASEAN) markets. Rajiv Bajaj said that of the significant milestones, the Company’s partnership in Malaysia is the most important. Through the new partnership, Bajaj will be able to localise up to 40 percent, thus reducing the total cost and offering the products at competitive prices than the current levels.