The growth rate is higher than the industry figure of 20 per cent for this year and Bajaj hopes to maintain this trend for the full year. The total production of Bajaj Auto's three-wheelers have been booked for a year, Bajaj claimed. He attributed the automobile industry's growth to the middle class's rising spending capacity.
The demand growth is opposite to trends in industries such as white goods and other consumer durables where growth has fallen. The current performance is creditable as it has been achieved despite the liquidity crunch affecting the industry, Bajaj explained. Bajaj Auto recorded turnover of Rs 2, 715 crore in 1995-96 with net profits of Rs 418 crore compared to Rs 2,144 crore turnover and net profits of Rs 305 crore the previous year. Exports during 1995-96 was higher at Rs 189 crore as compared to Rs 130 crore during the previous year.
The earnings per share for 1995-96 was also higher at Rs 52.37 compared with Rs 40.17 for the year 1994-95. The company managed to produce and sell more than 1.3 million vehicles during the year 1995-96 and in terms of cumulative performances the company managed to cross the 10 million mark in August 1995. Exactly a month later the company crossed the million mark in 3-wheelers.
During 1995-96 the company introduced two scooter models, Classic and Super Excel, which were well received by the market. Working to its full installed capacity the company led in scooters, two-wheelers and the motorcycle segments during 1995-96 though its total market share dipped from 48.6 per cent during 1994-95 to 46 per cent.
Bajaj Auto's expansion plans at Akurdi and Waluj are proceeding smoothly and the company is expected to have a production capacity of two million by the end of 1998. Bajaj Auto has met the new emission norms for 1996 after installing new 150 cc 3-port 2-stroke engines on all scooters and two-wheelers. According to Bajaj, the adaptivity of our plants to changing product-mixes coupled with capacity growths would ensure a greater share for the company in the two and three-wheeler market during the current year.