In an interview with CNBC-TV18, Bajaj Auto said that the month of June registered low sales of the Dominar 400 for the company. Due to the recently implemented GST or Goods and Services Tax, the company sold about 2,000 units during June which includes domestic and export sales. The two-wheeler manufacturer sold a cumulative 2,04,667 units of vehicles in June 2017 as compared to 2,73,298 units of motorcycles in last year in June, resulting in a decline of 25 percent. Before the implementation of the GST, Bajaj updated the prices of its model range so that it would have a less impact on the sales. “The retail has been more than 50,000 units than the wholesale numbers that the company have declared in the domestic market”, said S Ravikumar, President, Business Development, Bajaj Auto.
S Ravikumar also added that most of the motorcycles in the Bajaj portfolio are under 350 cc and with the GST, it has resulted in price reduction in most states by around two percent. During this transition, customers would have been waiting for a reduction once the news was out.
That said, Bajaj is confident that the Dominar 400 will sell about 10,000 units by March next year including exports. In the month of August, Bajaj says that the sale should relatively increase and is expecting total sales of two lakh units per month from September 2017 in the domestic market as compared to 1.24 lakh units in June. In the export markets, the company said that the sales were better than last year and as added by Ravikumar, “the company remains cautiously optimistic and watchful. The current run rate is around 1, 30,000 units per month, which could continue for at least a couple of months.”