Bajaj Auto Ltd., which commenced production of scooters in 1960, is the longest surviving player in the Indian two-wheeler industry. At the time of its completing 50 years of two-wheeler manufacturing in 2010, its annual turnover had crossed 120 bn. Bajaj Auto has survived and is doing well, while many of its competitors fell to the onslaught of dramatic changes brought about by the liberalization introduced in 1991. However, Bajaj Auto which was the undisputed leader in the Indian two-wheeler market for decades, was pushed to the second place in 2001-02 by Hero Honda Motors Ltd. While the Indian market shifted from scooters to motorcycles, Bajaj Auto followed the trend, though with a slight lag. But it failed to exploit the shift in demand within the scooters segment from geared scooters to ungeared scooters. The market dynamics has been undergoing more rapid changes in the recent years, and the years to come would be no different. Can Bajaj Auto regain its lost position; and if so, how?

Bajaj Auto Ltd. is a public limited company in India, engaged in the business of manufacturing and marketing two-wheeler and three-wheeler motor vehicles for personal and commercial transportation. It is one of the dominant players in the Indian automobile industry as a whole. Bajaj Auto belongs to what is referred to as the Bajaj Group, which comprises of 34 companies. The Bajaj Group is among the top 10 business houses in India. Bajaj Auto Ltd. is the flagship company of this group and it reported a gross sales turnover of 121,181 mn during 2009-10. The registered office of the company is at Akurdi near Pune, in the state of Maharashtra. It has three operational plants at Waluj and Chakan in Maharashtra and Pantnagar in Uttarakhand, with a total installed capacity of 3,960,000 vehicles per annum.

Exports contribute to around 25% of Bajaj Auto's turnover. During 2009-10, the company exported 891,002 two and three-wheelers as against a domestic sale of 1,961,578 vehicles. The company has two subsidiaries. One of these is PT Bajaj Auto Indonesia, which assembles and sells Bajaj motorcycles in Indonesia. The other is Bajaj Auto International Holdings BV, Netherlands, which is intended to make strategic overseas investments. This subsidiary has acquired 31.72% stake in KTM Power Sports AG, a sports motorcycle manufacturer based in Austria. Bajaj Auto also has a small manufacturing facility in China.

The Chairman of the Bajaj Group and Bajaj Auto Ltd., Rahul Bajaj, is the grandson of Jamnalal Bajaj who was a close associate and ardent supporter of Mahatma Gandhi. The top management of Bajaj Auto thus exhibits strong nationalistic and patriotic leanings and is often in the forefront of lobbying on issues related to foreign investments and the need for providing Indian players with a level playing field. The promoters belong to the Marwari community from Rajasthan state. This community is renowned for sharp business acumen. The Board of Directors includes Mr. Rahul Bajaj's three cousins, his son-in-law and also his two sons, Rajiv Bajaj and Sanjiv Bajaj. The promoters and their associates together hold more than 60% of the company's equity capital.

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