Archive · 23 Aug 2025
Bajaj Auto’s Prospects: Domestic Growth and Export Steadiness
Bajaj Auto, a company that makes motorcycles and three-wheelers, saw its stock price go up even though they didn't sell as many vehicles at home.
They've been doing well with sales abroad.
The company's profits are expected to grow due to potential tax cuts and good performance.
Although they are facing a temporary problem with getting parts for their electric vehicles.
They're working to solve it and are also trying to sell more vehicles in countries like Brazil and Nigeria.
Bajaj Auto's stock gained 6% despite sluggish domestic sales.
The company's domestic business made up 67% of FY25 revenue while exports accounted for the rest.
Market share in motorcycles slipped to 16.6% in FY25, primarily due to losses in the 125cc segment.
Exports are expected to remain steady, with potential growth in key markets like Brazil and Nigeria.
Shortage of rare earth magnets may impact EV production, though restrictions on exports have been lifted.
- Who
- Bajaj Auto, investors, and consumers.
- What
- Analysis of Bajaj Auto's financial performance and future outlook.
- When
- Q1 FY26, FY25, and projections for future fiscal years.
- Where
- Focus on domestic and international markets, including Brazil and Nigeria.
- Why
- To assess the company's performance, potential for growth, and investment prospects.
Focus on Weaknesses
Emphasis on Strengths
Domestic Sales Performance
Focus on Weaknesses
Sluggish domestic sales, with a decline in motorcycle growth of 4.3% in FY25.
Emphasis on Strengths
Resilient performance with revenue and EBITDA growth of 14% and 20% in FY25, respectively.
- Stock Price Change
- Gained 6% during the week
- FY25 Revenue
- 67% from domestic market
- Motorcycle Market Share (FY25)
- 16.6%
- FY26 Earnings Growth (estimated)
- 13-15%
- EV Production Impact (due to magnet shortage)
- 40-50% for e-2Ws, 25-30% for e-3Ws
- Primary Market
- Domestic and Exports