India's second largest two-wheeler maker Bajaj Auto's sales in May declined 2% year-on-year to 3,52,219 units as commercial vehicles tumbled and exports to Sri Lanka continued to be hit.
Its total motorcycle sales rose just 1% to 3,21,922 units and total exports were up 3% to 1,30,573 units.
The Sri Lanka government had beginning April hiked import duties sharply, which hit Indian companies like Bajaj Auto hard. The Pune-based company exports both two-wheelers and three-wheeler autos to the island nation.
Bajaj Auto said its exports to Sri Lanka in May were nil, compared with a typical monthly average of 10,000 motorcycles and three-wheelers. Company officials had said earlier that the local distributor would want to clear existing inventory before placing new orders in the wake of the duty hike.
The company now expects its exports to Sri Lanka will pick up from July.
Meanwhile, Bajaj Auto's total three-wheeler CV sales continued to slip. In May, sales plunged 26% to 30,297 units. CV sales in April had declined 13%.
Over April-May, the company has sold 7,33,809 units in total, up only 1%. Motorcycle sales over the last two months are up 4%, exports are up 5% and CV sales are down 19%.
While Bajaj Auto's sales have hit speed bumps, its rivals continue to accelerate. Honda Motorcycle and Scooter India, third-largest two-wheeler maker in India, sold 2,21,540 units in May up 52% year-on-year. The growth was led by 65% rise in scooter sales and 37% uptick in motorcycle demand.
India's largest two-wheeler maker Hero MotoCorp last week reported its sales rose 11% to 5,56,644 units.
Bajaj Auto shares were down 1.3% to Rs 1,478.90 units in morning trade.
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