Bajaj Auto’s Sales Plunge 22% In December

Bajaj Auto Ltd. closed 2016 on weak note, with sales falling 22 percent year-on-year in December.

Total sales fell to 2,25,529 vehicles from 2,89,003 vehicles in December 2015, the company said in an exchange filing. Sales of the Pune-based automaker fell for the second straight month after snapping a four-month slide in October.

Bajaj Auto sales had fallen 13 percent in November, with the rural market suffering a huge impact due to demonetisation. In the third quarter of the financial year 2016-17, total volumes fell 10.4 percent to 8,51,645 units from 9,51,498 units year-on-year.

Motorcycle sales fell 18 percent to 2,03,312 vehicles compared to 2,47,782 vehicles in the year ago period, while commercial vehicle sales fell 46 percent to 22,217 vehicles as against 41,221 vehicles in December 2015.

Exports Remain A Laggard

Exports fell 27 percent to 1,05,804 vehicles compared to 1,43,526 vehicles. Bajaj hasn’t managed to deliver year-on-year growth in exports since September 2015.

While exports of motorcycles fell 24 percent to 96,647 vehicles, exports of commercial vehicles nearly halved, falling 49 percent to 91,57 vehicles.

Domestic Demand Picture

• Domestic motorcycle sales fell 11 percent to 1,06,665 vehicles.
• Domestic commercial vehicle sales 44 fell percent to 13,060 vehicles.
• Overall domestic sales fell 17 percent to 1,19,725 vehicles.

Shares of the company fell as much as 1.9 percent to Rs 2,581.