Bajaj Auto can drastically cut the production of its Bajaj Motorcycles and three-wheelers by up to 25 percent from next month i.e. March. Let us know what is the reason behind taking such a big decision of the company.
vehicle manufacturer Bajaj Auto Motorcycles at its export-oriented plant from next monthBajaj Motorcycles) and could potentially cut the production of three wheelers by a whopping 25%. Such a decision of the company jazz auto Reflects the uncertainty in Nigeria’s biggest market.
Many people who know about the plans regarding the production plant of Bajaj Auto have told the Economic Times that the company making Bajaj Pulsar and KTM Bikes will be able to produce about 2 lakh 50 thousand to 2 lakh 70 thousand units in the next month i.e. March 2023. can produce.
With this decision of the company, the cumulative capacity utilization rate of Bajaj Auto’s production plant can come down to below 50 percent. For the information of you people, let us tell you that Bajaj Auto has the capacity to manufacture 5 lakh 50 thousand units every month.
reason for production cut
Rakesh Sharma, executive director of Bajaj Auto, told the Economic Times during a conversation that there is both civil and economic uncertainty in Nigeria due to elections and demonetisation. This is the reason why we have decided to cut down our shipments in a big way.
If Baja Auto’s two-wheeler exports fall below the estimated 1 lakh units in the next month of March 2023, it will be the company’s lowest overseas shipment since July 2020. Remind that earlier during the lockdown the company had reduced its production.
In the last month i.e. January 2023, the export volume of Bajaj Auto was 1 lakh 679 units, which has been the lowest in the last 30 months. Exports have been declining for six consecutive months and have seen an average decline of 34.4% year-on-year. For your information, let us tell you that Nigeria is facing demonetisation, poor economic growth and political uncertainty.