News reports reveal, Bajaj Auto Ltd. (BAL) has posted a year on year (YoY) rise of 3.3% in scooters sales during the August 1999. Motorcycle sales were more encouraging, clocking 30.3% YoY growth.
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 July 1999), motorcycles (26% market share) and mopeds (6% market share).
BAL's misery continued in August as far as scooter sales are concerned. Although the company posted marginal sales rise (3.3%) in sales for the month, cumulative sales for the April-August 1999, declined 14.4%, when compared to the corresponding period last year. However, it can take heart from its motorcycle sales, which posted a significant rise of 30.3% in August. But yet again, motorcycle sales for the period April-August 1999, rose only 2.3% over the corresponding period last year. Moped sales for August 1999 were up 34%, while cumulative sales for April-August 1999, fell 1.9%.
scooter sales in July 1999
BAL's sales figures for August is heartening news for its investors. Over the past few months, the company has taken some corrective steps to counter competition more effectively. Its latest product launch - the 'M-80 Major', has received encouraging response, mainly from the rural areas. The company currently offers Rs 2,000 discount on the 'Caliber', which has corrected its earlier price disadvantage against Hero Honda's 'Splendor'.
The company also plans to launch the Boxer AT and CT (motorcycles) in the near future, after which the company will have a motorcycle in every price range from Rs 32,000-Rs 40,000, which could see it counter competition from Hero Honda and TVS Suzuki.
Analysts have taken a positive view of BAL's encouraging YoY sales figures. They have forecasted a stabilising scooter market and find BAL's new range of products very promising. They have flagged a 'BUY' on the company's stock.
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