Bajaj Auto sales up 5 percent; situation still worrying in domestic market

Two-wheeler company Bajaj Auto’s sales rose five percent to 4,22,240 units in November but the domestic market did not show any positive signs despite the festive season. The company sold 4,03,223 vehicles in November 2019. In a communication sent to BSE, the company said its sales in the domestic market declined by four percent to
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Bajaj Auto sales up 5 percent; situation still worrying in domestic market

Two-wheeler company Bajaj Auto’s sales rose five percent to 4,22,240 units in November but the domestic market did not show any positive signs despite the festive season. The company sold 4,03,223 vehicles in November 2019. In a communication sent to BSE, the company said its sales in the domestic market declined by four percent to 1,98,933 units in November from 2,07,775 units in the same month last year.

Company CEO Rajiv Bajaj had earlier expressed concern about this. He had said that there may be positive signs in the festive season, but what will happen after that? The company’s total motorcycle sales rose 12 percent to 3,84,993 units, compared to 3,43,446 units in the same month last year. However, the company’s commercial vehicle sales declined by 38 percent to 37,247 units from 59,777 units in the same month a year ago.

The company’s exports rose 14 percent to 2,23,307 units in November. The company exported 1,95,448 vehicles in November 2019. Rajiv Bajaj had said that there was no growth in the auto sector after the lockdown in the country. He said that there is a lot of struggle in the retail sector. He said that the sale season has increased but it is not sustainable. He is also worried that when the competition ends in December, the sale may fall further.

Rajiv Bajaj had also said that GST should be changed and the MSME sector should be strengthened to increase sales and speed up the auto sector. In fact, the auto sector saw a big decline even before the lockdown. After the lockdown, people lost their jobs and purchases were further reduced. In the last few days, Bajaj Auto shares have been doing well in the BSE.

Exports have increased after the lockdown but the domestic market is still not ready to spend much. Auto sector businessmen expect more from the festive season, but this time they are disappointed.