Sales figures released by Bajaj Auto revealed that the company witnessed 7% sales decline in September 1999, as compared to the previous year (AIAM method).
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).
Cumulative sales over the period April-September 1999 were lower by 10%, compared to the corresponding period last year. Lower sales in September 1999 could be attributed to a decline in consumer purchases in the period of 'Shrad', which coincided with the fourth week of September.
The Shrad period, which will extend upto the second week of October, is considered to be an inauspicious period for a large part of the Indian population. During this period, people generally prefer to defer their decisions to purchase new goods. As a result, there is usually a slowdown in sales of durables during this period.
The period following Shrad could witness higher sales to account for the pent-up demand. However, it is difficult to comment on the magnitude of purchases, as many consumers might have made their purchases before the onset of Shrad.
Analysts have forecasted a stabilising scooter market and find Bajaj's new range of products very promising. They have flagged a ''BUY'' on the company's stock.
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