Bajaj bikes to go slow

Author: Neha Dhamija

Being in more than one business can get you more revenues for sure, but it has its flip side too. Take Bajaj group for instance; the business house is not only facing slow demand for bikes but also dealing with the sluggish pace in its financial services arm. Consequently, the group is thinking over a reduction of two-wheeler production, after the coming festive season. Strict lending policies of banks and rising interest rates are thought to cause not-up-to the mark performance of sales departments.

The concept of auto-financing for bikes also does not seem to be of much help to the company as buyers do not have enough credit available, any more. Moreover, the Asset Management business is facing a stand-still due to halts in talks with the old partner, Allianz. The company is expected to apply for an AMC license in next two months.
	Presently, the rate of growth in the auto wing of the organization is 7-8% and there were proposals to enhance it. However, MD of Bajaj FinServe, Sanjiv Bajaj expects the lethargy to stay for a few-quarters, so the expansion plans have been put on a ‘stand-by mode’. Once the things are clearer, the group is looking forward to step into other areas.