Bajaj Auto's July Sales Witness 10% Dip; Two-Wheeler Dispatches Down 15%
In the month of July, Bajaj Auto Ltd, the renowned two and three-wheeler manufacturer, recorded a total sales of 3,19,747 vehicles, experiencing a decline of 10% in comparison to the 3,54,670 units sold in July 2022. The lower sales were primarily attributed to a 15% fall in the dispatches of two-wheelers, with figures dropping from 3,15,054 units to 2,68,840 units, year on year.
The domestic wholesale figures for the last month witnessed a marginal decrease of 2%, totaling 1,79,263 units in comparison to the 1,82,956 units reported during the same period the previous year. Meanwhile, total exports experienced a notable decline of 18%, amounting to 1,40,484 units compared to the 1,71,714 units exported in the corresponding period of the last year.
The decline in July's sales was predominantly led by a 15% fall in the dispatches of two-wheelers, with figures dropping to 2,68,840 units from 3,15,054 units, year on year. Specifically, domestic two-wheeler sales were down by 14%, recording 1,41,990 units in July compared to the 1,26,850 units sold during the same month last year. Furthermore, exports of two-wheelers witnessed a significant decrease of 16% year on year, with figures reaching 1,26,850 units.
On the other hand, the total dispatches of commercial vehicles (CV) experienced a noteworthy increase of 29%, reaching 50,907 units as compared to the 39,616 units reported in the same period last year.
Domestic sales of CV in July 2023 exhibited remarkable growth, more than doubling from 18,572 units in July the previous year to 37,273 units in July 2023. However, CV exports declined by 35% year on year, reaching 13,634 units in July compared to the 21,044 units exported during the same month last year.
Despite the challenging sales figures, Bajaj Auto's share price has showcased an impressive rally of over 37% since the beginning of this year. Over the last one year period, the stock has gained an encouraging 25%, reflecting investor confidence.
At 9:50 am, Bajaj Auto's share price exhibited a 0.76% increase, reaching ₹4,969.00 per share on the BSE.
Bajaj Auto faced a decline in sales during July, predominantly due to reduced two-wheeler dispatches both domestically and in exports. However, the brand's commercial vehicle sales have shown promising growth. With a track record of strong performance, Bajaj Auto continues to be an intriguing prospect for investors in the automobile industry.
Disclaimer: The information in this blog post is for educational purposes only. Invest responsibly at your own risk. No liability for gains or losses. Seek professional advice before making investment decisions.
