Bajaj Auto 2-wheeler sales up 23% in May

Bajaj Auto posted a strong increase in auto sales for May, following on from a similar performance in April.

Total auto sales for May were up 30% at 4.07 lakh unit versus 3.14 lakh last year, while motorcycle sales were up 24% at 3.43 lakh versus 2.77 lakh.

Domestic sales of motorcycles were up 23% at 1.93 lakh, while exports of two-wheelers too were up 24% at 1.50 lakh this year.

In April too, the company had posted strong numbers, though exports of two-wheelers were up only 18% in April.

With this, total motorcycle sales in April & May together is up 21%.

MD Rajiv Bajaj said the growth was driven by both domestic market as well as exports, and both in motorcycles as well as three-wheelers.

He said sales in Nigeria has grown from 25,000 to 70,000, while new markets have added a “long and strong tail” that is driving three-wheeler sales.

“On motorcycles, we seem to have found our groove again,” Rajiv Bajaj said in his comments.

He said there has been a 40% growth in Pulsar this year so far.

For June, he said, motorcycles should grow at least 50% due to the low-base effect caused by GST-related problems in June last year.

He also said Dominar sales were about 3,000-4,000 a month. “We are going to keep trying.. It took us a while to get Pulsar when we started. It took us a while for KTM. It will take us a while to get Dominar,” he said.

On the negative side, he said, there has been a big increase in commodity prices, which have not been able to be passed on, and this would hit their margins.

Domestic sales of motorcycles in April & May is up 23% as both months saw a similar increase.

Commercial vehicles (autos and carriers) also continued to see strong momentum.

Domestic sales of CVs were up 83% in May at 32,082, a comparable performance to April when they rose 82% to 60,804 units.

In March too, the company was able to post strong numbers.