Bajaj Auto motorcycle sales fall 12% in January 2015

India’s third largest two-wheeler maker Bajaj Auto on Monday reported a 12% decline in total motorcycle sales in January at 246,955 units as against 281,390 units posted in the same month last year. 

Exports grew 4% during the reporting month at 142,992 units as compared to 137,644 last January. 

Bajaj Auto’s stock fell 2.48% after sales numbers were declared. 

Speaking to CNBC TV 18, Bajaj Auto managing director Rajiv Bajaj said that exports have been challenged by namely by issues arising from three countries, Sri Lanka, Nigeria and Egypt.

“From Sri Lanka we had a large export order of 30,000 Discover bikes every month spreading from January to March. The change of government in Sri Lanka has put a freeze on that order for now but we believe that it should go through,” he said. “Nigeria is going through elections this month and this is the time generally when retails fall. There is also a bit of hiccup in Egypt with forex availability but demand is not an issue there for three wheelers."

Nigeria is Bajaj Auto’s largest overseas market. The African country has seen a significant price increase recently because of devaluation of its currency. Bajaj Auto has identified 29 new markets and is in talks with local partners to enter those regions.

The company is hopeful of reaching 200,000 domestic bike sales before the start of new financial year, Bajaj said. It is launching a new bike this month and another one in March. The company has undertaken a price hike of 0.5-1% on products which is over and above the 4% increase in excise duty effective January 1.