Speaking to ET Now, Sharma said that the GST reduction has created both disposable income gains and positive sentiment, prompting consumers to advance purchases of motorcycles. “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,” Sharma noted.
Best Navratri sales in 5 years
Sharma described this year’s Navratri as Bajaj Auto’s best in five years, though he refrained from giving specific Diwali or festive season sales targets. “The setup is good, and retail sentiment is positive. But it is difficult to hazard numbers with so many moving parts,” he added.
Customers upgrading to premium bikes
A key trend supporting demand is uptrading in the motorcycle market. Over the last five years, the share of entry-level (below 100 cc) motorcycles has fallen from 55% to 48%, with more customers opting for higher-capacity bikes. “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 segments
Bajaj Auto has also taken a strategic call to absorb the GST hike in motorcycles above 350 cc, impacting models like KTM and Triumph. “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.
Strong export momentum
On exports, Sharma reported robust growth, particularly in Latin America, where Bajaj Auto recorded its highest-ever quarterly sales. “We are growing at 1.5 times the industry rate in key markets. With over 30 countries contributing 80% of our global business, exports are a strong growth engine. Dollar appreciation is also supporting margins,” he highlighted.
Outlook for FY26
Looking ahead, Sharma maintained a cautiously optimistic outlook. “The GST cut has improved near-term momentum and should support medium-term growth. However, inflation, rupee volatility, and regulatory costs—such as mandatory ABS on all two-wheelers—could offset some benefits. The real test will come in January–February, once festive demand normalizes,” he cautioned.Bajaj Auto remains positive on both domestic and international demand trends but is closely monitoring macroeconomic headwinds that could affect affordability and margins.
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