Mumbai: Bajaj Auto Ltd, India’s largest exporter of motorcycles and three-wheelers, plans to raise its installed capacity from 5.76 million units to 6 million units by March, the company said in its 2013-14 annual report.

In the last fiscal year, company’s motorcycle and three-wheeler volumes fell 8.7% to 3.87 million units. Exports, however, rose 2.4% to 1.58 million units. Export revenues grew 22.1% to 8,199 crore during the period, helped by a weak rupee.

In a letter to shareholders, Bajaj Auto chairman Rahul Bajaj wrote: “At one level, one can but only applaud an organization that responds to a very challenging environment by delivering the company’s highest Ebitda (earnings before interest, taxes, depreciation, and amortization); a significantly industry-leading Ebitda margin; and all time high profit before tax and profit after tax. At another level, however, we need to ask why should Bajaj Auto have a flat growth in the top line? Or why should your company, with its outstanding offerings of motorcycles, lose 4 percentage points of domestic market share—to 20% in 2013-14?"

According to the annual report, 2013-14 was the third-worst year for the motorcycle industry since 2000. After expanding at over 20% in 2009-10 and 2010-11, it fell to 11.9% in 2011-12 and then plummeted to -0.1% in 2012-13. Although was a slight increase in growth to 3.9% in 2013-14, this occurred not because of the introduction of superior products, but significant sales promotion and pushing of excess stocks, the report said. For Bajaj, the decline was sharper than the industry. The company’s volumes in the domestic market fell 14.8% to 2,099,230 units over a year ago.

Exports showed a volume growth of 2.3% to close at 1.32 million units. It gained market shares across South Asia, the Middle East, Latin America and Africa. The Boxer 150 motorcycle was successfully launched across various markets. Considerable emphasis was given to entering new markets such as Argentina, Turkey, Ghana, Afghanistan, Lebanon, Guinea, Togo, Mali, Burkina Faso and Liberia.

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