Abstract

Bajaj Auto Limited is one of India's largest two-wheeler manufacturers. As the dominant player until the early 1990s, Bajaj's market share declined from 49.3% in 1994, to 38.9% in 1999 with the entry of major competitors like Hero Honda. Bajaj has initiated several measures to regain its market share and strengthen its competitive position. The case discusses the financial strategy pursued by Bajaj.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Indian two-wheeler history, Working capital, Cost of capital, Capital structure, Cost structure, Dividends, Investments, Return on capital, Bajaj Auto Limited, Ratio analysis