The automotive sector is reeling from the effect of the COVID-19 outbreak and the country-wide lockdown it has brought about. Over the past couple of days, we’ve seen manufacturers post shocking drops in sales figures, and the most recent to publish a negative sales performance is Bajaj Auto.
In March 2020, Bajaj sold 2,10,976 two-wheelers – a 35 percent drop from the 3,23,538 units it sold in March 2019. This figure is inclusive of both domestic sales and exports. If you consider just the domestic figures, the drop is ever more significant. In March 2019, Bajaj sold 2,20,213 two-wheelers in the domestic market, but it’s down by 55 percent with 98,412 units sold in March 2020. On the flip side, however, export numbers have seen a hike from 1,03,325 units in March 2019 to 1,12,564 units in March 2020 – up by 9 percent.
Year-on-year sales have seen a 7 percent decline. In April-March 2019, Bajaj sold a total of 42,36,873 two-wheelers, and that number fell to 39,47,568 in April-March 2020. Domestic sales went from 25,41,320 units to 20,78,348, down by 18 percent. Exports saw a 10 percent increase, with 18,69,220 units sold in April-March 2020 compared to the 16,95,553 units sold in the same period last year.
The one thing that Bajaj won't have to bother about, however, is the BS4 to BS6 transition hassle, as dealers tell us they’ve managed to sell most of the BS4 stock before the April 1 deadline.
Ved Janve
Azaman Chothia
Dinshaw Magol
