Autobayng News Team
Rakesh Sharma“>
Bajaj Auto is witnessing robust festive season momentum, with October sales expected to outperform September, buoyed by the recent GST reduction, pent-up demand, and improved consumer sentiment, according to Executive Director Rakesh Sharma.
Speaking to ET Now, Sharma said the GST cut has not only improved affordability but also lifted buyer confidence, prompting customers to advance their purchase decisions. “September saw a sharp surge in the final nine days after people postponed purchases due to GST rate announcements. October will likely be better as we see the full impact of the cuts,” he noted.
Best Navratri in Five Years
Calling this year’s Navratri Bajaj Auto’s best in five years, Sharma said the company is optimistic about festive momentum continuing into Diwali, though he refrained from giving specific sales targets. “The setup is good, and retail sentiment is positive. But it is difficult to hazard numbers with so many moving parts,” he said.
Shift Toward Premium Motorcycles
A key trend underpinning Bajaj Auto’s growth is uptrading in the motorcycle market, with more customers moving from entry-level to higher-capacity bikes. “Over the last five years, the share of sub-100 cc motorcycles has fallen from 55 per cent to 48 per cent. GST cuts have reinforced this trend, giving slightly better-off customers the confidence to stretch their budgets for bigger bikes,” Sharma explained.
Absorbing GST Hike in Premium Segment
In a move to sustain momentum in the premium category, Bajaj Auto has chosen to absorb the GST hike on motorcycles above 350 cc, including KTM and Triumph models. “The GST rate went up from 28% to 40%, but we maintained stable prices to avoid hurting ramp-up momentum for these premium brands. The move has been well-received by customers and dealers,” Sharma said.
Export Performance at Record Levels
On the export front, Bajaj Auto has reported record quarterly sales in Latin America, driven by strong demand across key international markets. “We are growing at 1.5 times the industry rate in major markets. With over 30 countries contributing 80% of our global business, exports remain a key growth engine. Dollar appreciation is also supporting margins,” he highlighted.
Outlook for FY26
While Sharma remains cautiously optimistic about FY26, he warned that external pressures such as inflation, rupee volatility, and regulatory costs — including mandatory ABS on all two-wheelers — could partially offset the benefits of GST cuts. “The GST cut has improved near-term momentum and should support medium-term growth. The real test will come in January–February once festive demand normalises,” he added.
With festive cheer, strong export momentum, and premiumisation trends playing out, Bajaj Auto enters the second half of the year on a strong footing, though management remains watchful of macroeconomic headwinds that could impact affordability and margins.
Join the community of 2M+ industry professionals.
Subscribe to Newsletter to get latest insights & analysis in your inbox.
All about ETAuto industry right on your smartphone!
- Download the ETAuto App and get the Realtime updates and Save your favourite articles.
