Why Did Bajaj Auto's Domestic Two-Wheeler Sales Decline by 12% in August?
Click to start listening
Synopsis
Bajaj Auto's domestic two-wheeler sales faced a significant decline in August, reflecting broader market trends. Despite this setback, the company saw overall growth due to increased exports and commercial vehicle performance. This article delves into the sales statistics and market dynamics influencing Bajaj Auto's performance.
Key Takeaways
- Bajaj Auto's domestic two-wheeler sales fell by 12% in August.
- Overall sales increased to 4,17,616 units.
- Exports rose by 25% YoY, offsetting domestic losses.
- Commercial vehicle sales grew by 21%.
- Upcoming GST reforms may lower taxes on entry-level vehicles.
New Delhi, September 1 (NationPress) Bajaj Auto Ltd disclosed a 12% year-on-year (YoY) decrease in its domestic two-wheeler sales, totaling 1,84,109 units in August.
Despite this decline, the company's overall sales for the month increased due to robust exports and a significant rise in the commercial vehicle sector. In total, Bajaj Auto sold 4,17,616 units (which includes both two-wheelers and commercial vehicles) in August, compared to 3,97,804 units during the same month last year.
However, cumulative domestic sales saw an 8% decline, with 2,32,398 units sold in August, down from 2,53,827 units the previous year. On a positive note, two-wheeler exports surged by 25% YoY.
The overall export figures compensated for the domestic shortfall, showing a remarkable 29% increase (considering both two-wheelers and domestic sales) with 1,85,218 units exported compared to 143,977 units in August 2024.
Commercial vehicle sales rose by 21% to 75,729 units, up from 62,626 units the previous year, fueled by growth in both domestic (up 7%) and international markets (up 58%).
On a consolidated level, Bajaj Auto's sales from April to August experienced a 2% increase, reaching 18,94,853 units. Domestic two-wheeler sales fell by 11% to 82,52,732 units, yet exports in this category rose 18% during the same period.
Meanwhile, commercial vehicle sales saw a 14% increase to 3,07,928 units, bolstered by a 47% surge in exports, totaling 1,10,311 units.
In Q1 FY26, over 10 lakh passenger vehicles were sold in India, with Maharashtra leading the sales figures, according to the Society of Indian Automobile Manufacturers (SIAM).
From April to June, 10.12 lakh passenger vehicles were sold in the country, with the western region accounting for 3.21 lakh units.
Looking ahead, upcoming Goods and Services Tax (GST) reforms may lower taxes on entry-level passenger vehicles and two-wheelers to 18%, potentially making them more affordable as Diwali approaches.
Currently, all combustion engine passenger vehicles are subject to a GST of 28% plus a compensation cess ranging from 1% to 22% based on various factors like engine capacity, length, and body type.
Point of View
It's crucial to recognize the challenges faced by Bajaj Auto amidst fluctuating market conditions. While the decline in domestic two-wheeler sales is concerning, the company's ability to leverage exports and commercial vehicle growth showcases its resilience. Our commitment is to provide accurate insights that reflect the evolving landscape of the automotive industry.
NationPress
01/09/2025
Frequently Asked Questions
What were Bajaj Auto's domestic two-wheeler sales in August?
Bajaj Auto reported domestic two-wheeler sales of 1,84,109 units in August, marking a 12% decline year-on-year.
How did overall sales perform for Bajaj Auto in August?
Overall, Bajaj Auto sold 4,17,616 units in August, an increase from 3,97,804 units the previous year.
What factors contributed to Bajaj Auto's overall sales increase?
The increase in overall sales was driven by strong exports and a significant rise in the commercial vehicle segment.
What changes are expected in the GST for vehicles?
The upcoming GST reforms may reduce tax on entry-level passenger vehicles and two-wheelers to 18%, enhancing affordability.
How did commercial vehicle sales perform?
Commercial vehicle sales increased by 21% to 75,729 units in August, reflecting growth in both domestic and international markets.
