Bajaj Auto sales slump 22% as demonetisation squeezes demand

Bajaj Auto Ltd closed 2016 on a weak note, with sales falling 22 per cent year-on-year in December.

Total sales fell to 2,25,529 vehicles from 2,89,003 vehicles in December 2015, the company said in a stock exchange filing. Sales of the Pune-based automaker fell for the second straight month after snapping a four-month slide in October.

Bajaj Auto sales had fallen 13 per cent in November, with the rural market suffering a huge impact due to demonetisation. In the third quarter of the financial year 2016-17, total volumes fell 10.4 per cent to 8,51,645 units from 9,51,498 units year-on-year.

Motorcycle sales fell 18 per cent to 2,03,312 vehicles compared to 2,47,782 vehicles in the year ago period, while commercial vehicle sales fell 46 per cent to 22,217 vehicles against 41,221 vehicles sold in December 2015.

Exports fell 27 per cent to 1,05,804 vehicles compared to 1,43,526 vehicles. Bajaj hasn't managed to deliver year-on-year growth in exports since September 2015.

While exports of motorcycles fell 24 per cent to 96,647 vehicles, exports of commercial vehicles nearly halved, falling 49 per cent to 9,157 vehicles in December 2016 against 18,017 in the previous year.