Bajaj Auto has reported a nearly 22 percent drop in its net profit during Q3 FY2022. The company's profits fell to Rs 1,214 crore, compared to Q3 FY2021, due to a fall in demand for two-wheelers in domestic as well as in export markets. However, the company's total revenues grew by 1 percent, to Rs 9,022 crore, during the comparable period on the back of price hikes by the auto major to account for raw material price increases.

The company sold 4,71,284 units as wholesales during Q3 FY2022, down by 20 percent in comparison to Q3 FY 2021. A total of 4,88,148 units were sold during Q2 FY2022. Likewise, Bajaj Auto, which likes to call itself the 'World's favourite Indian' on account of its formidable export performance, saw sales drop by 5 percent, to 6,08,398 units, in comparison to a year-earlier period.

The Federation of Automobile Dealers Associations (FADA), the apex national body of automobile retail industry in India, in a recent update suggested that customers appear to be acting with caution as Omicron spreads.

Also, the demand from rural markets, which constitute over 50 percent of two-wheeler sales, continue to lag at the moment, as crop losses due to incessant rains and floods in Southern states, high acquisition costs, as well as spike in fuel prices have affected buying sentiments. Even the marriage season failed to ignite two-wheeler sales, except in one or two states, says FADA.