Reeling with the negative impact of demonetisation, Bajaj Auto Managing Director Rajiv Bajaj hit out at Prime Minister Narendra Modi saying that the idea of note ban was “wrong” and now blaming it on inefficient execution is unfair.
“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. The note ban has adversely affected the sale of two-wheelers.
Till date, the sales have not yet gained pace with industry data releases over the last two months showing a slump. Hopeful of better sales after a good monsoon season and an acceleration in rural economic growth, the company is hugely hit by the drive.
Bajaj Auto’s total domestic sales, including those of two-wheelers as well as three-wheelers, fell by 16 per cent to 1,35,188 units in January from 1,61,870 units sold during the same period last year. After the decision was announced in December, Bajaj Auto saw its domestic bike sales contracting by 11 per cent at 1,06,665 units as against 1,20,322 units in the same month a year ago.
It was on November 8, 2016 that Prime Minister Narendra Modi announced demonetisation, banning the old Rs 500 and Rs 1000 notes. The decision was aimed at curbing black money and bringing those who have announced cash stashed with them to book. However, the decision left several people standing in huge lines outside banks and ATMs to withdraw their hard earned money. Massive cash rationing was introduced as the new replacement notes were in short supply.