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Bajaj Auto sustains growth, sales perk up 9% - Views on News from Equitymaster
 
 
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  • Mar 3, 2000

    Bajaj Auto sustains growth, sales perk up 9%

    Bajaj Auto has sustained sales growth in February 2000, with a 9% appreciation in sales (volumes).

    Bajaj Auto is India's largest manufacturer of two/three-wheelers with a presence in all three segments of the two-wheeler market - scooters (64% market share in September 1999), motorcycles (26% market share) and mopeds (6% market share).

    With sales of 127,000 units (excluding CKD sets supplied to Maharashtra Scooters, but including CBUs) in February 2000, Bajaj Auto's sales have looked up 9%, sustaining growth triggered by the company's marketing blitz to evoke interest in its products and shore up scooter sales.

    Some analysts were apprehensive of Bajaj Auto's marketing initiative and felt that it could not be sustained for long. Bajaj Auto seems to have proved its skeptics wrong, at least till now. Another concern voiced by analysts relates to the company's margins, which will come under pressure with the discounts/prizes being offered to consumers.

     

     

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