Witnessing good progress in Jan-Mar period

Rajiv Bajaj, MD, Bajaj auto said that the company is witmessing good progress in January-March period. A  fiarly good growth was seen in XCD 135 cc. Last year, exports grew by 25%. There is pressure in exports seen since Januray 2009. The company should now export 50-60K motorcycles in June quarter vs 40000. The input prices have softened, gain to be Rs. 800/motorcycle.He further added that there are only 2 major costs in this business, cost of material and cost of sales. In cost structure, 30% is cost of material. Bajaj Auto has moved away from 100 cc+ segment to 125cc+ segment, in which the comapny is leader. He clarifies that they are not out to make a car that is cheapest but to make a fuel efficient car. He feels that there is nothing called rural marketing in auto industry. No 2 wheeler has competitive edge over the other in rural reach. His company is working on cracking the strength of Hero Honda with new launches.

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