Bajaj Auto June sales slip 6% on slower bike sales, exports

Moneycontrol Bureau

India's second largest two-wheeler maker Bajaj Auto saw its total sales in June slide 6% year-on-year to 3,45,162 units as demand for motorcycles in India slowed, while disruption in three-wheeler sales to Egypt and Sri Lanka hit exports.

Bajaj Auto's total motorcycle sales were down 1% to 3,18,377 units, while three-wheeler commercial vehicle sales slumped 39% to 26,785 units in June.

The company said three-wheeler sales to Egypt and Sri Lanka were disrupted, but it expects sales will normalise from July.

Bajaj Auto's total exports were down 18% to 1,16,062 units in June.

Bajaj Auto exports on average around 10,000 two-wheelers and three-wheelers to Sri Lanka, but a sharp rise in import duties by its government in April has hit shipments to the island nation.

Overall for the April-June quarter, Bajaj Auto's total sales were down 1% to 10,78,971 units. Motorcycle sales rose 2%, but CV sales plunged 26% during the three-month period. Exports in April-June were down 3%.

Bajaj Auto shares fell post the disappointing announcement. At 10:30 hrs, the stock was down 1.5% at Rs 1,549.10 on NSE.

Bajaj Auto's MD Rajiv Bajaj said that the domestic motorcycle market is stagnant currently, but despite the slowdown, he is still maintaining the earlier guidance for the full year.

The company is banking on its recent new launches like the Discover ST and Pulsar 200NS motorcycles to boost sales this year. Bajaj Auto sold around 5,000 units of the Discover ST and Pulsar 200NS put together last month, the first full month since the products were launched. It hopes to ship 15,000 units of the two in July, Rajiv Bajaj told CNBC-TV18.