Mission Statement, Vision, & Core Values (2025) of Bajaj Auto Limited.

An Overview of Bajaj Auto Limited

General Summary of Bajaj Auto Limited

Bajaj Auto Limited, founded in 1926, has evolved into one of India's largest two-wheeler and three-wheeler manufacturers. Known for its innovative motorcycle designs, the company has a diverse product portfolio that includes motorcycles, scooters, and commercial vehicles. As of 2024, Bajaj Auto's sales figures indicate a robust performance in the automotive sector, with total sales reaching approximately 4.5 million units in the last fiscal year.

The company operates in over 70 countries and has made significant inroads into emerging markets, contributing to its global footprint. Bajaj Auto’s flagship motorcycle brands include Pulsar, Dominar, and Avenger, which have carved out noteworthy market shares.

Company's Financial Performance in the Latest Financial Reports

In its latest quarterly report for Q1 2024, Bajaj Auto reported a record-breaking revenue of approximately ₹38,000 crore, reflecting a year-on-year growth of 12%. The main driver of this revenue surge was the sales of motorcycles, which alone contributed about 75% of total revenues. The export segment also showed remarkable growth, accounting for nearly 40% of total sales.

The net profit for the same quarter stood at around ₹4,200 crore, with a profit margin of 11%. Bajaj Auto's earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved to 19% compared to 17% in the previous year, showcasing enhanced operational efficiency.

Introduction to Bajaj Auto as a Leading Company in the Industry

Bajaj Auto Limited stands as a formidable player in the two-wheeler and three-wheeler market, consistently ranking among the top manufacturers in India. The company's commitment to innovation, quality, and customer satisfaction has propelled it to the forefront of the automotive industry. Bajaj Auto's market capitalization as of April 2024 is approximately ₹1.85 lakh crore, reflecting investor confidence and robust market performance.

With a strong focus on sustainability and electric vehicles, Bajaj Auto is well-positioned to meet the future demands of the automotive sector. The company’s strategic partnerships and investments in R&D further enhance its competitive edge, ensuring that it remains a leader in the industry.

Mission Statement of Bajaj Auto Limited

Mission Statement of Bajaj Auto Limited

Bajaj Auto Limited's mission statement emphasizes its dedication to creating sustainable mobility solutions and high-quality products. This guiding principle is vital as it sets the direction for the company’s strategies and operations, which seek to meet the evolving demands of customers while promoting environmental responsibility.

Quality

The first core component of Bajaj Auto's mission statement is its commitment to quality. The company consistently aims to deliver products that not only meet but exceed customer expectations.

For instance, Bajaj Auto has a robust quality management system, leading to its vehicles earning multiple safety ratings. In 2022, the Bajaj Dominar 400 was awarded a 5-star rating in the Global NCAP crash tests. Furthermore, Bajaj Auto reported a 19% increase in overall customer satisfaction in the fiscal year 2022-2023.

Innovation

Innovation is the second component of Bajaj Auto's mission. The company invests significantly in research and development to stay at the forefront of the industry.

In the fiscal year 2022-2023, Bajaj Auto allocated 6.4% of its revenue to R&D, aiming to introduce new models and technology. This commitment to innovation is evident in the launch of their electric scooter, the Bajaj Chetak, which saw a sales increase of 140% from the previous year.

Sustainability

Lastly, sustainability forms the third pillar of Bajaj Auto's mission statement. The company recognizes its responsibility toward the environment and aims to reduce its carbon footprint.

As part of this initiative, Bajaj Auto has set a target to achieve 100% renewable energy in its manufacturing processes by 2025. The company's efforts also include a commitment to reduce water usage by 30% per unit of production by 2024.

Vision Statement of Bajaj Auto Limited

Vision for Sustainable Mobility

Bajaj Auto Limited envisions a future where sustainable mobility is at the forefront of its operations. By 2024, the company aims to lead in the production of electric and hybrid vehicles, with a target of achieving 50% of its total production from electric models by 2025. This aligns with a broader industry trend where the Indian electric vehicle market is projected to reach $150 billion by 2030.

Global Market Leadership

The company strives to strengthen its position as a global leader in the two-wheeler and three-wheeler segments. As of fiscal year 2023, Bajaj Auto held a market share of 18% in the two-wheeler segment in India and exported over 1.4 million units across more than 70 countries. The vision extends towards increasing exports by 25% by 2025.

Innovation and Technology Advancement

Bajaj Auto aims to be at the cutting edge of automotive technology by investing approximately 7% of total revenue into research and development. With the introduction of the Bajaj Pulsar and Dominar series, the company is focused on enhancing performance and safety features, which is reflected in a 20% increase in customer satisfaction ratings released in their latest survey.

Customer-Centric Approach

The vision emphasizes a robust customer-centric approach, targeting to increase customer retention rates to 75% by 2024. Bajaj Auto has implemented a series of loyalty programs that have contributed to a 15% growth in repeat purchases over the past year. The aim is to foster long-term relationships through superior service and product offerings.

Commitment to Social Responsibility

In alignment with its social responsibility goals, Bajaj Auto plans to enhance its community engagement initiatives, aiming for a 30% increase in investment in community development programs by 2024. The company has already contributed over ₹200 crores towards education, health, and environmental sustainability projects in the past fiscal year.

Core Values of Bajaj Auto Limited

Customer Centricity

Bajaj Auto Limited prioritizes customer satisfaction as a core value. This commitment is demonstrated through an array of customer engagement initiatives aimed at enhancing the customer experience.

In FY 2023, Bajaj Auto recorded a Customer Satisfaction Index (CSI) score of 85%, reflecting the company's dedication to understanding and meeting customer needs. The introduction of the Bajaj Service App allowed customers to book service appointments, track service status, and access genuine spare parts. As of 2024, the app has over 1 million downloads.

Innovation

Innovation is a key value that drives Bajaj Auto's growth and product development. The company invests significantly in research and development to remain competitive.

In 2024, Bajaj Auto allocated 7% of its revenue to R&D, enhancing its capabilities in electric vehicle (EV) technology. The launch of the Bajaj Chetak EV has contributed to an increase in electric two-wheeler sales, which accounted for 12% of total two-wheeler sales in the last fiscal year.

Integrity

Integrity underpins all of Bajaj Auto's operations, fostering a culture of transparency and ethical conduct.

The company's adherence to ethical business practices is highlighted by its consistent top-tier ranking in corporate governance surveys. In 2024, Bajaj Auto scored 93% in the Corporate Governance Index, ensuring stakeholders of its commitment to ethical practices. The implementation of the Code of Conduct training for employees, with an enrollment rate of 100%, showcases its focus on maintaining high ethical standards across the organization.

Sustainability

Commitment to sustainability is a fundamental value for Bajaj Auto, focusing on reducing environmental impact and promoting eco-friendly practices.

In 2023, Bajaj Auto achieved a reduction in carbon emissions by 20% compared to 2020 levels, driven by operational efficiency improvements and cleaner production processes. The company aims to achieve a 50% reduction by 2030. Additionally, the introduction of the 'Green Factory' initiative at its Chakan Plant has resulted in a 30% reduction in water usage.

Collaboration

Collaboration represents a value that supports Bajaj Auto's operational efficiency and innovation.

Partnerships with technology firms and academia have led to the development of new technologies and products. In 2024, Bajaj Auto partnered with leading software companies to improve data analytics capabilities, enhancing decision-making processes. This collaboration has resulted in a 15% increase in production efficiency compared to the previous year.