Bajaj Auto sees strong H2 growth despite sales decline in September

Despite a decline in year-on-year sales numbers in September 2007 compared to sales in September 2006, Bajaj Auto sees strong sales ahead in the second half of the year on the back of the sales of its XCD DTS-Si, launched earlier in September.

Therefore, it is increasing its monthly production target of 50,000 units for the XCD DTS-Si to 75,000 units per month, as the advance bookings for the new product covers virtually the entire October 2007 production of 50,000. The company says that this should eventually translate into a 25 per cent market share of the value segment for Bajaj, enabling its overall motorcycles market share to inch closer to 40 per cent.

The company reported that the XCD DTS-Si, launched nationally on 9 September 2007, has met its first month's target with sales of 18,131 units, with over half the buyers (55 per cent) of the XCD DTS-Si having previously owned other motorcycle brands and about 10 per cent being first time buyers.

Bajaj Auto expects more than strong sales from its new product; it expects the XCD DTS-Si to catalyse the increasing shift away from 100cc motorcycles, and believes that such motorcycles could come to represent less than 50 per cent of the market as early as December 2007.

Rajiv Bajaj
MD, Bajaj Auto Ltd.
Date: 01/10/2007

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