Bajaj Auto, which is one of India's largest two-wheeler manufacturers, has seen a 14 per cent decline in its domestic motorcycle sales in October 2019. The company sold 242,516 vehicles in the month as compared to 281,582 vehicles in October 2018. The company's motorcycle exports saw just 3 per cent growth at 156,397 compared to 151,403 units in October 2018. In total, motorcycle sales fell 8 per cent to 398,913 units from 432,985, Bajaj Auto said in a BSE filing on Friday.
In the commercial vehicle segment, Bajaj Auto saw a 5 per cent fall in domestic sales at 36,260 units as compared to 38,360 units sold in corresponding months last year. Exports in this category fell 21 per cent to 28,035 units. Overall, the commercial vehicles sale declined 13 per cent to 64,295 units compared to 73,714 units in October 2018.
In terms of total motorcycle and commercial vehicle sales, the company saw 11 per cent decline in India in October at 1,605,009 units as compared to 1,813,232 units in the same period last year. Bajaj Auto's exports, including both motorcycle and commercial vehicles, saw a 2 per cent rise at 1,278,964 units. In total, the company's sale of vehicles declined 6 per cent to 2,883,973 in October than 3,072,784 in October 2018.
The company had last month reported a 22 per cent increase in net profit for the quarter ended September 30, 2019, at Rs 1,402.42 crore. Sale of automobiles in India declined again in September by 22.41 per cent, tenth month on the trot. The slowdown in the industry is largely on account of a bad festive season last year which led to the problem of higher inventories, tight liquidity with banks as a fallout of the NBFC crisis and an overall sluggish economy and low consumer sentiment.
As many as 280 dealerships have shut shop in the last 18 months due to slow off-take of vehicles. Another industry that is facing the brunt is the ancillary sector that is dependent on the performance of the original equipment manufacturers. Experts say almost 10 lakh jobs are in danger if the slowdown persists beyond the next few months.
Edited by Manoj Sharma