No official notification of 3-wheeler import ban in Sri Lanka yet: Bajaj Auto

Bajaj Auto stock is under pressure on back of reports that suggest Sri Lanka will restrict import of 3-wheeler taxis and the company is one of the primary exporters of that segment.

Discussing the impact of this on sales and overall exports, S Ravikumar, President of Business Development and Assurance, Bajaj Auto said they are yet waiting for official notification on the import ban in Sri Lanka for 3-wheelers and in touch with their distributors over there.

He said Sri Lanka's budget is due next week and usually before that these kind of reports come.

In the current year, between domestic and international, the company is looking at sale of 6 lakh three-wheelers, said Ravikumar, adding that so the numbers are quite good.

Moreover, the total dependence on Sri Lanka with regards to 3-wheeler exports is 6 percent of overall number.

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However, currently he says the demand for exports have risen in the current year and demand is outstripping production. The production is running at about over 100 percent installed capacity and will continue for next few months even if Sri Lanka news is true, says Ravikumar. So, see not impact on demand for the company and impact on earnings contribution of the company, he adds.

Moreover, with de-risking strategy in mind the company has come out with a 'Qute' model which has all the benefits of three wheelers and is low risk and has low emission.

With regards to festive sales, he says they in par with the guidance of 25 percent sales for the season. Saw good traction for Platina and CT100, and Pulsar is also doing great, he says.