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Old 9th August 2017, 14:08   #31
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Default Re: Operating margins of Indian car & bike manufacturers (FY 2011 - 17)

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Originally Posted by srh View Post
While I don't dispute that Bajaj is comparatively operationally efficient, the fact around the 3W business contributing to profitability remains. While 3W may be 16% by sales volume, the revenue realization per 3W would be 2 to 2.5 times of that per 2W.

Also, Bajaj's 2W sales include more of high capacity bikes as compared to competition. Even this helps in achieving a higher margin.
All products are equally liable to contribute to the profitability is the way Bajaj looks at it. That's their philosophy. Hence their three wheeler business even though adds to the top line, not necessarily is the reason behind high margins.

Also, my point was more towards comparing Bajaj auto and Eicher motor's profitability. The former has generic products which face fierce competition while the latter enjoy's market monopoly and has limited products (thus saving on huge investment costs).
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