Automobile maker Bajaj Auto is expecting a gradual increase in exports by the end of 2023. The company is witnessing an uptick in the export across countries primarily due to better foreign exchanges.
“The export trend is picking up for the last two to three months. The export recovery is not going to be rapid but a gradual one. The reason for that is that prices have settled down slowly, and customers have to digest the new prices. The recovery will be over three to six months,” Rakesh Sharma, Executive Director of Bajaj Auto, told businessline.
A 33 per cent year-on-year drop in exports was reported by the automaker in June when the company reported export of 1,27,357 two-wheelers compared with 1,90,865 vehicles in June 2022.
Also read: Electric 2-wheelers hit a speed bump
However, the company witnessed a month-on-month increase with 1,12,885 two-wheelers exported in May.
Fluctuating trend
businessline had earlier reported that in May the two-wheeler exports witnessed the highest uptick since January with 2,59,945 units, according to the Society Of Indian Automobile Manufacturers(SIAM).
Exports of two-wheelers reported a dip in 2022 owing to the geo-political crisis, inflationary pressures in South Asian and African markets with a shortage of foreign exchange. Ban on motorcycle taxis in Nigeria had also impacted the exports of Indian two-wheeler OEMs.
“The uptick in the export demand seen over the last couple of months of fiscal 2024 is backed by slight recovery and stabilisation of environment in few of these regions, as well as slight moderation in oil prices.” Anuj Sethi, Senior Director, Crisil Ratings Ltd had said.