Bajaj vs Hero in Revenue: Though both the makers have shown declines but in absolute numbers, Bajaj has beaten Hero in FY2019-20.
It was only recently when Bajaj became country’s largest maker for the month of May 2020 (though temporarily due to COVID-19 disruptions – here is our report). In a latest update, the Pune based maker has released another shocker! Bajaj Auto has surpassed Hero Motocorp to become the largest two and three-wheeler manufacturer in India, in terms of revenue.
Bajaj vs Hero in Revenue
Bajaj Auto posted revenues of ₹29,919 crores in FY2019-20, as compared to ₹28,836 crores posted by Hero Motocorp. The company also disclosed that it also had the highest EBITA (Earnings before interest, taxes and amortization) in the industry at 19%, and it is growing at the rate of 10% CAGR in terms of revenue.
For 2018-19 fiscal, Hero MotoCorp reported total turnover of ₹33,651 crores as compared to Bajaj’s ₹31,899 crores.
|FY2018-19 Revenues||₹31,899 crores||₹33,651 crores|
|FY2019-20 Revenues||₹29,919 crores||₹28,836 crores|
Bajaj’s exports accounted for over 50% of the country’s total two-wheeler and three-wheelers with a turnover of ₹11,845 crores. In percentage terms Bajaj exported over 47% of its production to over 79 countries in the world in FY2019-20.
Bajaj Auto, in its report, also revealed that the feat was achieved on the back of successful launches of Platina H-Gear and CT-110, while its old workhorse – the Pulsar series retained its charm even after 18 years of its launch. The company has strengthened its portfolio with the introduction of Pulsar 125 at the lower end and Dominar 250 in the mid-segment.
The company noted that they have successfully increased their dominance in the Intra-City Business Unit (comprising of 3-wheelers), and their quadricycle “Qute” has also been received well in the market. Bajaj Auto has partnered with Uber in Bengaluru to provide affordable and comfortable public transportation options to people.
The company also revealed that the KTM-Bajaj alliance has made KTM the largest European motorcycle manufacturer. Now this is an exciting turnaround and it remains to be seen, for how long will Bajaj be able to retain this leadership.