Bajaj Auto posted a 7% year-on-year growth in volume during September, the first increase so far in 2017-18. The Pune-based company reported wholesale volume of 2,47,418 units.
Bajaj Auto posted a 7% year-on-year growth in volume during September, the first increase so far in 2017-18. The Pune-based company reported wholesale volume of 2,47,418 units. Analysts at Motilal Oswal said Bajaj Auto’s retail sales improved by about 7-9% in September on a year-on-year basis. This is slightly lower than the growth seen by TVS Motors and Honda Motorcycles and Scooters (HMSI), which witnessed retail demand growth of 10-15% and 8-10% Y-o-Y, respectively. The analysts cited information received from dealer channels. Industry watchers believe there has been some recovery in demand in both rural and semi-urban markets. Bajaj Auto’s dealers also offered freebies such as free insurance and free accessories like seat covers to promote sales.
Bajaj Auto’s motorcycle sales remained poor in April and May as competitors offered big discounts to lure buyers as they attempted to get rid of stocks before the government banned BS III (Bharat Stage-III) vehicles. In June too, Bajaj’s sales continued to be weak due to de-stocking at dealerships ahead of the transition to the goods and services tax on July 1. The company’s sales declined by 36% y-o-y in June.
Bajaj Auto has faced some stiff competition in the motorcycle segment, with buyers preferring automatic scooters and niche motorcycles such as Royal Enfield. In the premium motorcycle space, Bajaj’s market share has been on a decline. According to Crisil, the company’s market share in the premium motorcycle space has declined from 33% in financial year 2016- 2017 to 27% so far in the current financial year.