1

FY10 FY09 Gr.

Motorcycles 2,506,791 1,907,853 31%
TOTAL
Total 2Wh's 2,511,643 1,919,625 31%
UNITS
3 Wh's 340,937 274,529 24%
Total Units 2,852,580 2,194,154 30%

FY10 FY09 Gr. Domestic motorcycle market

Motorcycles 1,781,768 1,276,470 40% Units H1 Gr. H2 Gr.
Domestic
Total 2Wh's 1,785,528 1,286,162 39% Bajaj 744,000 -5% 1,038,000 109%
Units
3 Wh's 176,050 135,473 30% Others 2,777,000 22% 2,781,000 23%
Total Units 1,961,578 1,421,635 38% Total 3,521,000 15% 3,819,000 38%

FY10 FY09 Gr.

Motorcycles 725,023 631,383 15% Market share for motorcycles in
Export domestic market improved from
Total 2Wh's 726,115 633,463 15%
Units 21% in H1 / FY10 to
3 Wh's 164,887 139,056 19% 27% in H2 / FY10
Total Units 891,002 772,519 15%
2
Financial Results ( Rs. in crores )
Particulars FY10 FY09 Growth M at er ial co st
Net Sales 11509 8437 Qt r %
Other operating Income 412 373
Q1 66.2
Total Income 11921 8810 35%
Q2 66.2
Expenditure Q3 68.5
Material ( net ) 8055 6449 Q4 69.3
Employee cost 400 354
F ull year 6 7.7
Other expenditure 874 805
Total expenditure 9329 7608 23% Ot her exp end it ur e
EBITDA 2592 1202 116% Qt r %
% 21.7 13.6 Q1 9.5
Interest 6 21 Q2 8.1
Depreciation 136 130
Q3 6.7
Operating Profit 2450 1051 133% Q4 5.3
% 20.6 11.9
F ull year 7.2
Other income ( net ) 122 112
2572 1163 121%
EB IT D A
Exceptional items :
Qt r %
Expenditure incured on VRS 183 183
Q1 19.5
Loss on derivative hedging instruments -22 22
Q2 22.0
Profit before tax 2411 958 152%
Tax 708 302 Q3 22.0
Profit after tax 1703 656 160% Q4 22.9
3
Earnings per share 117.7 45.2 F ull year 2 1.7
Summarized Cash flow
Rs. in crores FY09
Cash and cash equivalents
Opening balance 933
Closing balance 3263
Net change during the year 2330
Earned from operations and treasury 2730
Outflow : CAPEX 117
Investments : PTBAI & KTM 83
Income tax 700
Dividend 372
Working capital and others (872)
Total outflow 400
Net change 2330 4
MOTORCYCLES

5
 INDEX

• Industry Analysis and Projections

• Category Projections

• Bajaj Performance

• Brand Strategy

• New Initiatives and Outlook for the Yr 2010-11

6
 INDUSTRY ANALYSIS
AND
PROJECTIONS

* 7
 INDUSTRY

• 15 year Trend

• Forecast for next 3 years

• Growth Drivers

8
 INDIAN MOTORCYCLE INDUSTRY
(DOMESTIC + EXPORTS)
Yearly Total
Motorcycle Industry – Volumes (Yearly Total)
9,000,000
8446591

8,000,000

7091545
7,000,000

6201389 6544649 6805366

6,000,000
5217995

5,000,000

4312751
4,000,000
3756409
3,000,000
2861061

2,000,000 2033147
1612895
1,000,000
1176779
802266 913956

0
96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10

9
 DOMESTIC MOTORCYCLE INDUSTRY
Yearly Total
8000000 50%
46% 7340417

7000000
40%
6586443
6000000 34%
5826678 5826816 30%
5756927 26%
5000000 24% 21%
23%
15% 4725996 20%

4000000
3898751 13%
3396409 10%
3000000
2537061 1% 0%
2000000
1733147
1396895
-10%
1000000
-13%

0 -20%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Volume Growth Y-O-Y

10
 MOTORCYCLE DOMESTIC INDUSTRY -
PROJECTIONS
Yearly Total
12000000

10,476,596 (13%)

10000000

9,259,922 (14%)

8000000 8,140,816 (11%)

7,340,417
6,586,443
6000000
5,826,678 5,826,816
5,756,927
4,725,996
4000000 3,898,751

3,396,409

2000000
2,537,061
1,733,147
1,396,895
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

11
 GROWTH DRIVERS (YR 2010-11)
• GDP
– 8.5%
• Consumer Confidence
– 55% are Rural
• Crop Production (expected was 260 MT vs Actual near to 230 MT)
• MSP (Major Crops Y-O-Y)
– Sugarcane (33% hike)
– Paddy (11%)
– Wheat (8%)
• Rain (Quantity, Time and Spread)
– 45% are Urban and Semi Urban
• Salary rises

12
CATEGORY PROJECTIONS

13
 CATEGORY SHARE PROJECTIONS

80%

61% 64% 65%

59% 56%
60% 55% 59% Commuter Deluxe 52%
49% 48%

44%
40% 43% 44% 38%

33% 31%
36% Commuter Standard
25%
19%
20% 19%
12% 14% 16%
10% 17%
8% 8% 9%
6%
2%
Sports
0%
FY 2001-02 Fy 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11

Commuter Std Commuter Deluxe Sports

14
 CATEGORY VOLUME PROJECTIONS (MA)
Segment Volumes
500000

440961
400000
Commuter Deluxe
391656
299110
286476 271616
300000
234738
199079
208899 209422
179196
200000 Commuter Standard
214524
129166 150622 128896
172275 118263
120184
117391
100000 108544
102713 109109 55568 59500 67714 102449
43663
17987 26901 32698
4036 Sports
0
FY 2001-02 Fy 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11

Commuter Std Commuter Deluxe Sports

15
BAJAJ PERFORMANCE

16
 BAL PERFORMANCE

• Overall

• Category Wise

17
 OVERALL (MA)
Overall
750000 35.0%

31%
30% 30%
29% 611679 30.0%
600000
551467
24% 487008 25.0%
23.0% 24% 24%
492925
450000 481738
22% 20.0%
353190 404052
306293
15.0%
300000

10.0%
235916
150000 137587
145578 173242
148479 5.0%
54292 120807
106369
72164 85303
0 0.0%
FY 2001-02 Fy 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10

Industry BAL MS%

18
 COMMUTER STANDARD (MA)
Commuter Standard
250000 50%

214524 45%
44%
209422
200000 40% 41% 38% 40%
38%
36% 39%
172275 35%
33%
150000 150622 30% 30%

118560 25%
117391
109109 120184
100000 20%
102713 78135
76178
81245
15%
57066
50000 44583 45169 10%
39050
41411
35506 5%

0 0%
FY 2001-02 Fy 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10

Industry BAL MS%

19
 COMMUTER DELUXE (MA)
Commuter Deluxe
500000 25%

20% 390892
400000 20%
18%
17%
15%
300000 299110 15%

286476 271616
208899 11% 234738
11%
200000 9% 179196 199079 10%
10%

7%
100000 129166 5%
56131
35978 48148 32374
21343 21448 66366
12269
0 11867 0%
FY 2001-02 Fy 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10

Industry BAL MS%

20
 SPORTS (MA)
Sports
150000 100%
93%
90%
85%
80%
72%
102447
70%
100000 71% 65%

60%
54%

50%
67714 46%
59500 40%
43%
50000 55568
25% 43663 30%
46607
26901 32373
32698 20%
17987 31465 35865
28825
24910 23181 10%
4036 15312
1014
0 0%
FY 2001-02 Fy 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10

Industry BAL MS%

21
 PORTFOLIO COMPOSITION
90.0%

80.0%
76% 76%
70.0%
Discover + Pulsar
62% 63% 59%
60.0%
58%
54% 54% 53%
50.0%
46% 46% 47%
42%
40.0%
38% 37% 41%
Platina + CT 100
30.0%

24% 24%
20.0%

10.0%

0.0%
FY 2001-02 Fy 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10

Platina + CT100 Discover + Pulsar

22
BRAND STRATEGY

23
 TWO BROAD
MOTORCYCLE SEGMENTS

Commuter Sports
Share of the 83% of the 17% of the Market
Market Market

Target Group Middle age, Middle class Youth

Geography Semi-Urban , Rural Mainly urban

Premium, stylish and feature

Available Frugal, utility and value rich bikes with loads of
Offerings offerings excitement value 24
 BRAND STRATEGY

• Commuter : Discover

• Sports : Pulsar

25
DISCOVER – ATTACK STRATEGY

26
 Bajaj Idea

To upgrade the commuters to experience

Bigger & Sportier bikes.

27
 Two step upgradation plan

Upgrade 1 : Feature upgradation – Discover 100

Upgrade 2 : Experience upgradation – Discover 150

28
Upgrade 1 : Feature Up-gradation

29
FEATURE UP-GRADATION :DISCOVER 100

30
 THE CONSUMERS WERE EXCITED….

Making new High

VOLUME MONTH

•6 Lacs Discovers sold in record time of 250 days.

•The Fastest growing bike ever.
31
 REASONS BEHIND SUCCESS OF
DISCOVER 100

DTS-Si Engine

On-road mileage of 80 Kmpl

Long Wheelbase

Nitrox Suspension

5 Speed Gear Box

Electric Start

All these at a price of Rs. 41736 : An unbeatable value for money

32
 Attains new milestone in April ‘10

Discover becomes The 2nd largest selling

brand

33
 And now….

Upgrade 2 : Experience Up-gradation

34
EXPERIENCE UP-GRADATION :
DISCOVER 150

35
 DISCOVER 150 :
EXCITEMENT PER LITRE

145 cc DTS-i Engine

On-road mileage of 65 Kmpl

Disk Brake

Dark Tone Sporty Graphics

Wider Rear Tyres

All these at a price of Rs. 46000 (Ex-showroom Delhi)

36
 PERFORMANCE CHECK AGAINST
KEY COMPETITION

Discover 150 Shine Passion Pro Glamour

Engine CC 144.8cc 124.6cc 97.2cc 124.7cc

Max Power [Ps @ rpm] 13.0 @ 7500 10.4 @ 7500 7.8 @ 7500 9.0 bhp @ 7000

10.35 Nm @ 4000
Max Torque [Nm @ rpm] 12.75 @ 5500 10.78 @ 5500 8.04 @ 4500
rpm

Wider tires Yes No No No

Gears 5 4 4 4

Rs 46,000/- Rs 50,787/- Rs 44,800/- Rs 48,250 /-

Price
Elect. Start + Alloy Elect. Start + Alloy Elect. Start + Alloy Elect. Start + Alloy
(Ex showroom Delhi)
wheel + Disc wheel + Disc wheel + Drum wheel + Disc
brake brake brake brake

37
PULSAR – DEFENSE STRATEGY

38
 PULSAR : DEFENSE STRATEGY

• Up the Benchmark
– Fastest Indian : Top Speed – 145 km/hr

– Pulsar Stunt Mania

• Expand the Category

– Pulsar 135 LS

39
 PULSAR VOLUME

70000
65002 63353
60000
61687
52022
55022
49437
50000
41663
44349
40000 39214 38013
35328
30000 38194

24233
20000

10000

0
Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10

40
 MAJOR INITIATIVES
AND OUTLOOK FOR YEAR 2010 – 11

41
 MAJOR INITIATIVES
Actions 2009-10 2010-11
1. New Products
Discover 100 a
Pulsar 135 LS a
Platina 125 a
Discover 150 a
2. Quality
Oil Frequency Reduction (From 5000 Km to 10000 Km) a a
Service Frequency Reduction (From 2500 Km to 5000 Km) a a
3. Network
Dealers Expansion (10% increase) a a
Secondary network Quality up gradation (RSO‘s to ASC’s) a
4. Brand
Twin Brand Strategy
Pulsar
• a a
Discover
• a a
5. Customer Finance (Direct Cash Collection)
850 ASC’s offer DCC model a a 42
 OUTLOOK FOR YR 2010 – 11

• Industry Estimated to grow at 11% to 15%

• Discover 150 will further grow our Commuter Segment

market share

• Pulsar market share will continue to be 50% +

• Discover - Pulsar proportion will continue to grow in Bajaj

Domestic Portfolio

43
COMMERCIAL VEHICLE BUSINESS 44
 Growth Drivers & characteristics - SCV Industry
9.00
SCV Industry
8.00
• Growth at 13% 7.00 3.01
CAGR
6.00
• Drivers –

No of Veh (Lacs)
5.00 2.94 2.34
GDP growth, 3.05

4.00 2.33
Hub & Spoke model, 1.96
1.44
Poor public transport, 3.00
5.36
Replacement triggered by 2.00
2.99 3.33 3.50
3.97
2.50 2.54
availability of alt. fuel 1.00

0.00
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Cargo 1.44 1.96 2.33 3.05 2.94 2.34 3.01
4Wh Pass 2.50 2.54 2.99 Year
3.33 3.50 3.97 5.36

45% 3Wh
55%

Passenger
Passenger Cargo Cargo
• Growth at 13%
• Growth at 15% • Growth at 30% • De-Growth at
CAGR
CAGR CAGR -3% CAGR
Growth driven by
• Primarily a rural • Versatile vehicle • Affected by
diesel/Incity
people mover suitable for both launch of a more
passenger
Long trip distance intra and inter city versatile vehicle

45% 55% 81% 19%

COMMERCIAL VEHICLE BUSINESS 45
 Principal application of 3 wheelers/Like
There are three distinctly different applications, currently needing
different value propositions and catering to distinctly different customer segments and
hence needing different strategies
Segment Primary uses Fuel used BAL position Forecast 3yr
CAGR
In-city Home-Office- Petrol/LPG/CNG Leader –about 10%
Home 90% market share
Shopping
School children
Home-Railway
station/Airport-
Home

Rural Stage coach Diesel 23% market share 11%

Cargo Wholesaler to Diesel/ CNG Marginal presence -6%

retailer
Retailer to end
user
Distribution
COMMERCIAL VEHICLE BUSINESS 46
 In city

Non - AC AC
Call Taxi
Rs / Km

1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12 12.5 13 13.5 14 14.5 15

• Auto rickshaws offer an economical transportation to people

• They make a good value proposition to all stake holders

– Attractiveness to operators/users

– Attractiveness to transport and city planners

– Attractiveness to Environmentalists

COMMERCIAL VEHICLE BUSINESS 47

 In city (cont)
• Opportunities
– Heavy traffic congestion on city roads.
– Greater realization of the need for sectoral reforms among policy planners.
– Growth of population
– Growth of cities
– Resource limitation in expanding bus fleet and/ or providing other means of mass
transport.
– CNG availability in more cities towns leading to a huge replacement/Fresh demand.

• BAL Plans
– Set & raise industry standards of excellence in products, service, quality and innovation
– Wider product range – RE 145 family, RE 205 family (07 products)
– Investment in technology development and emission management --- GDI, CNG and
LPG versions optimized for use with alternate fuels and not merely tuned to run on
alternate fuels
– Cutting down on dead weight further by optimized engineering and use of alternate
materials.
COMMERCIAL VEHICLE BUSINESS 48
 Rural -- Current vehicle usage
Magic
14 + Jeeps
No of Pass. Carried (avg)

12 RE 445 L Jeeps
Ape Magic
RE 445 L
10 Ape
Magic
RE 445 D RE 445 M
8
Ape
6
RE 145/205
<10 <20 30 40 >60
Trip Distance

• Small 3WH are used for distances < 10 KMs & upto 8 passengers
• Larger 3+1 3WH are used upto 30 KMs lead & upto 12 passengers
• Magic/jeeps is for longer leads (40 – 60 Kms)
COMMERCIAL VEHICLE BUSINESS 49
 Rural Passenger
• In suburban and rural areas 3W are primarily used as substitutes for
buses.
• They thrive because of very poor public transport (Poor Frequency
Impatience?) and on shorter trip distances.
• They carry from 6-15 passengers. Availability of passenger per trip
decreasing as population of 3w increasing
• They compete with host of substitute products doing the same thing
i.e. act as substitute for buses eg. jeeps etc.
• Success here in future would depend on providing a vehicle with right
space for, keeping costs low, best fuel efficiency reasonable revenue
to give highest earnings under the given operating conditions.

COMMERCIAL VEHICLE BUSINESS 50

 Rural (cont)
• Opportunities
– Inability of State Governments to provide the required number of buses
– Lack of political will to privatize public transport and free up fares
– Increasing number of three wheelers on these routes bringing down load
availability from 10-12 to 6-8 people for 80% of the trips.
– Lack of connectivity from villages to highways leading to a need for feeder
vehicles.

• BAL Plan
– Use the ‘RE’ equity to gain leading market share over a two year time frame.
– Developed and launched LPG/CNG versions of RE445M products to be ready
when environmental concerns spread to upcountry markets.

COMMERCIAL VEHICLE BUSINESS 51

 BAL Marketing plans – Brand and Identity
• RE to stand for MORE ( Product portfolio upgraded/created new, First to meet Emission
norms effective 1st april )
– More mileage
– More space
– More earnings
– More comfort
– More service points
– More customer facilitation
• Beginning FY 11 we will building the brand ‘RE’ so customers start associating it with
‘MORE’ of all they seek.
• New CI

COMMERCIAL VEHICLE BUSINESS 52

 Marketing plans -- Access

• An expansion of network being implemented

2009-10 2010-11

Dealers 152 183

Dealer branches 327 403

Sales outlets 265 329

ASCs/CSTs 384 630

COMMERCIAL VEHICLE BUSINESS 53

 Marketing plans -- Financing

• A sharp focus on making competitive finance options available to our

customers

2009-10 2010-11
Nationalized Banks 25% 35%

Dealer funding (No. 10 20

of dealers)

COMMERCIAL VEHICLE BUSINESS 54

 The CNG boon

• Rapid progress in in the CNG

Pipeline.
• Over 100 City Gas Distribution
(CGD) contracts awarded and under
implementation.
• Huge replacement potential
• BAL best placed to exploit the huge
replacement demand that would
inevitably be created

CGD contracts awarded

COMMERCIAL VEHICLE BUSINESS 55

 BAL’s view of the future of 3W passenger business
• 3W passenger business will grow at a healthy rate
• 3W passenger vehicles will play a significant role in people movement in
• both In-city and rural segments
• Growth will be triggered and sustained due to following favorable factors:
– Emission concerns will force policy makers to acknowledge and recognize the
favorable emission values, more specifically the green house gases, of the
Autorickshaw.
– There is no substitute for a cheap and economical mode of transport in a
heavily layered socio-economic structure as in India.
– Heavy traffic congestion and the lack of resources and space for roads in most
Indian cities will force city and traffic planners to relook at strategy for urban
mobility, Public transport like metro trains and buses to be supplemented by
last mile transportation mode like 3w..

COMMERCIAL VEHICLE BUSINESS 56

Summary of BAL’s medium term strategy for CV business
• We will stay focused as specialist on the passenger segment.
• We see this product category continuing to play a significant role in
people movement both in Cities/towns and short distance inter-town
because of the values and compulsions enumerated earlier.
• We intend to continue our domination of In-city segment
• In the rural passenger movement, we intend to gain significant
market share through a combination of product and marketing
initiatives.
• Making finance available at competitive interest rates

COMMERCIAL VEHICLE BUSINESS 57

 AN IDEA
WHICH PROVIDED MOBILITY TO INDIA
WILL NOW
ALSO ‘GREEN’ INDIA!!

CLEAN MACHINE

THANK YOU
COMMERCIAL VEHICLE BUSINESS 58
International Business

59
 Volume Trends
1,000,000 Overall CAGR- 37%

900,000
CAGR-26%

800,000

700,000

600,000
Volumes

CAGR-38%
500,000

400,000

300,000

200,000

100,000

0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
MCY 53,366 90,210 130,949 174,923 301,775 482,030 633,463 726,115
CV 40,875 65,797 65,767 75,447 140,645 136,315 139,056 164,887
TTL 94,241 156,007 196,716 250,370 442,420 618,345 772,519 891,002

60
 FY 10 Performance

Region Wise Product Wise

38%

9% 19%

Africa & ME Boxer

25%
LAmerica Discover
51% S Asia Pulsar
23% M/C Others
SE Asia
CV
15% 12%
8%

Category 2009-10 Growth

M/C 726,115 14.6%
CV 164,887 18.6%
Total 891,002 15.3% 61
 Addressed Markets

Region Wise Competition Wise

6% 18% 15%

18%
37% AFRICA
Middle East Bajaj

LA Chinese

SE ASIA Japanese
20%
SOUTH ASIA
19% 67%

Africa & ME Contribute 56% of the market Chinese motorcycle has 67% of the
world market

Note: China/ Non EU /Brazil/Pakistan markets have not been included 62

 International Business Approach
• Africa
– Deeper penetration through exclusive sales network
– Ensure after sales reach and repairability
– Build Boxer brand
– Develop new markets for CV

• Asia
– Defend high shares. Drive growth through penetration in Bangladesh
– Indonesia : rejig portfolio with Pulsar 135. Reposition Pulsar brand.

• Latam
– Focus on Pulsar and Discover brands
– Selectively strengthen routes to market

• Invest in “ last point capability”

• Develop strategies for larger new markets
63
 Thank you

No part of this presentation is to be circulated, quoted, or reproduced for any distribution without prior written
approval from Bajaj Auto Limited, Mumbai-Pune Road, Akurdi, Pune-411 035, India.

Certain part of this presentation describing estimates, objectives and projections may be a “forward looking
statement” within the meaning of applicable laws and regulations. Actual results might differ materially from
those either expressed or implied. This material was used by Bajaj Auto Limited during an oral presentation; it is not
a complete record of the discussion.

64