Bajaj Auto Scooter, Moped Sales Hit The Skids
Poor growth in consumer demand and stiff competition has taken a heavy toll on Bajaj Autos scooter and moped sales in the first two months of the current financial year. Bajaj Autos scooter sales touched 67,730 units (including 12,620 scooters from the Maharashtra Scooters stable) in May 1997, a fall of 19.74 per cent from the May 1996 figure of 84,390 scooters. The decline was even sharper in April, with sales plummeting 21.44 per cent to 51,541 scooters, compared with 65,610 scooters in April 1996.
In stark contrast, Bajaj Auto arch-rival LML posted a 52.77 per cent rise in scooter sales in May 1997 (month over month). The Kanpur-based two-wheeler major sold 27,500 scooters in May 1997 against 18,000 scooters in May 1996.
Bajajs poor run extended to mopeds, with sales dropping 48 per cent in May 1997. The company sold 3,651 units, compared with 7,022 units in May 1996, while its sales fell 50 per cent from 6,741 mopeds in April 1996 to 3,376 mopeds in April 1997.
Analysts said LML has gained from the drop in Bajaj sales. However, one analyst defended Bajaj Auto, saying: ``Apart from the recession, one should also look at the fact that Bajaj sales for April-June last year had been very strong. Hence, one is comparing this years sales against a very strong base.
Bajaj Auto vice-president Rajeev Bajaj was unavailable for comment.
Bajaj Autos dismal sales in the first two months of this fiscal are a continuation of its poor performance in the second half of 1996-97. The company was forced to cut production from 5,100 units per day to 4,600 units per day in the second half, while inventory reached 25,000 units on March 31, 1997, against 9,051 units in March 1996.
In the Japanese motorcycles segment, Bajaj sold 8,368 and 10,074 units in April and May 1997 respectively. Sales for the corresponding period last year were 8,517 and 10,306 units respectively.
Meanwhile, Hero Honda surged ahead, with May 1997 sales improving by 46.5 per cent to 31,500 units, against 21,500 units in May 1996.
However, the company fared well in the Indian motorcycle and three-wheeler segments. Sales in the Indian motorcycles segment increased 10 per cent to 13,847 units in May 1997 from 12,638 in May 1996. April sales also rose to 12,233 units from last years 12,078 units.
The company maintained its undisputed leadership in the three-wheelers segment, although April sales dropped marginally from 13,021 units in 1996 to 12,344 units this year. However, three-wheeler sales recovered in May, rising from 14,573 units to 15,962 units.