Bajaj Auto Becomes The World’s Most Valuable Two-Wheeler Maker
The year has started with a bang for Pune-based Bajaj Auto that has become the world’s most valuable two-wheeler company. The bike maker’s market capitalisation crossed Rs. 1 lakh crore recently, which has made it the most valuable two-wheeler company. Bajaj Auto’s market cap is 63 per cent higher than domestic rivals Hero MotoCorp and 43 per cent higher than Eicher Motors that owns Royal Enfield. The feat is huge for the Indian giant and all the more special given the brand is in its 75th year of operations.
Bajaj Auto’s share price closed at Rs. 3,479 on the NSE on January 1, 2021, which propelled the brand’s market capitalisation to Rs. 100,670.76 crore. The stock has gained 11 per cent over the year, with a 79 per cent rally since the drop in value in March 2020. The Pulsar maker is also the first two-wheeler firm to cross a market capitalisation of over Rs. 1 lakh crore. Not even international manufacturers have been able to achieve this milestone.
Commenting on the milestone, Rajiv Bajaj, Managing Director, Bajaj Auto said, “The company’s sharp focus on the motorcycle category and its unwavering commitment to strategies of differentiation as well as the practice of TPM combined with global ambitions have today made Bajaj the most valuable two-wheeler company across the globe. This inspires us even more to serve and delight customers all over the world.”
Established in 1945 as M/s Bachraj Trading Corporation Private Limited, the company started business by importing Vespa scooters in India and later obtained a license from the Indian government to manufacture scooters and three-wheelers in 1959. The company forayed in the motorcycle business in 1986 and has been one of the biggest players in the segment dominating the sub 200 cc segment. More recent years have also seen the manufacturer expand horizons as it partnered with Kawasaki that helped it gain technology and access to newer markets. The company then acquired stake in Austria’s KTM and went on to develop and produce sub 500 cc performance bikes that have been extremely popular. Bajaj entered into a non-equity partnership with UK’s Triumph Motorcycles in 2020 to build and sell bikes in India and overseas. The first bike from this association will come in 2023.
Having exited the scooter segment in the 2000s, Bajaj made a comeback to this space in 2020 with the Chetak electric that also marks a new chapter for the firm as it explores electric mobility. The projects and partnerships have also helped Bajaj find solid ground overseas. At present, exports account for about 53 per cent of the company’s total volumes as it retails products like the Boxer, Pulsar range, Platina and the RE three-wheeler in over 70 countries. Its strong export operations also helped the company recover faster from the uncertainty of the pandemic and the slowdown in domestic sales.