Idea of Note Ban It­self was Wrong, Says Ra­jiv Ba­jaj

The Economic Times - - Companies: Pursuit Of Profit - Press Trust of In­dia

Mum­bai: With the ad­verse im­pact of note ban con­tin­u­ing to ham­per two-wheeler sales, Ba­jaj Auto man­ag­ing di­rec­tor Ra­jiv Ba­jaj on Thurs­day said the idea of de­mon­eti­sa­tion was it­self “wrong” and it is in­cor­rect to blame only the ex­e­cu­tion side of it.

“If the solution or the idea is right, it will go like a hot knife through but­ter...if the idea is not work­ing, for ex­am­ple de­mon­eti­sa­tion, don’t blame ex­e­cu­tion. I think your idea it­self is wrong,” Ba­jaj said at the an­nual Nasscom lead­er­ship fo­rum. Prime Min­is­ter Naren­dra Modi had on Novem­ber 8 last year scrapped all the .₹ 500 and .₹ 1,000 notes, with a view to check black money.

Notably, two-wheeler sales are yet to re­cover from the im­pact of de­mon­eti­sa­tion and in­dus­try data re­leases over the last two months have been show­ing a slump. The in­dus­try was look­ing for­ward to bet­ter sales on the back of good mon­soon and an ac­cel­er­a­tion in ru­ral eco­nomic growth.

Ba­jaj Auto’s to­tal do­mes­tic sales, in­clud­ing those of two-wheel­ers as well as three-wheel­ers, were down 16% to 1,35,188 units in Jan­uary from 1,61,870 units sold dur­ing the year ago pe­riod. For De­cem­ber, Ba­jaj Auto saw its do­mes­tic bike sales con­tract­ing 11% at 1,06,665 units.

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