Bajaj Auto share price falls 4%, hits 52-week low; stock down 13% in 8 days

Bajaj Auto share price: In February 2025, Bajaj Auto sold 1,46,138 units of two-wheelers in the domestic market, which was 14 per cent lower than 1,70,527 units of two-wheelers sold in February 2024

Bajaj Auto share price moved lower in stock market trading today, extending its fall into the eighth straight session. At 12:20 PM, Bajaj Auto shares were down 3.44 per cent on the BSE at Rs 7,445.8 per share as against 0.21 per cent dip in the benchmark BSE Sensex index.

 

Earlier in the session, Bajaj Auto shares fell 3.8 per cent to hit an intraday low of Rs 7,417.45 per share. This is also the stock’s 52-week low.

 

Including today’s decline, Bajaj Auto share price has slipped 13.4 per cent in the last eight sessions. The Sensex, meanwhile, has dropped 4.1 per cent during the period.

 

In February 2025, Bajaj Auto sold 1,46,138 units of two-wheelers in the domestic market, which was 14 per cent lower than 1,70,527 units of two-wheelers sold in February 2024.

 

Its two-wheeler exports, however, rose 23 per cent year-on-year (Y-o-Y) to 1,53,280 units, leading to an overall increase of 2 per cent Y-o-Y in the two-wheeler segment.

 

That apart, Bajaj Auto’s domestic sales for commercial vehicles increased 3 per cent Y-o-Y, but exports dipped 2 per cent for the segment, leading to a total rise of just 1 per cent Y-o-Y in commercial vehicle sales.

 

Together, Bajaj Auto’s combined sales of two-wheeler and CV stood at 3,52,071 units in the previous month, including exports of 1,68,656 units. This was a rise of 2 per cent Y-o-Y over total sales of 3,46,662 units in February 2024.

 

That said, the company was recently served with a Goods and Services Tax (GST) notice by the Deputy Commissioner of State Tax, Pune.

 

The company, Bajaj Auto said, has received the order with tax demand amounting to Rs 138.53 crore. The tax demand mainly relates to differential tax liability between specific HSN classification adopted by the company with a GST rate of 18 per cent as against general HSN classification of auto parts alleged by tax authorities with a GST rate of 28 per cent.

 

“According to the tax authorities, the company, being a manufacturer of automobiles, the entire spare parts being customised product, used only in manufacturing of vehicles would get classified as auto parts at GST rate of 28 per cent disregarding the principle of general rules of interpretation,” Bajaj Auto said in an exchange filing.

 

The order, which pertains to the period of FY21, also imposes applicable interest and penalty of Rs 13,85,49,375 (Rs 13.85 crore).

 

Bajaj Auto, on its part, said the GST demand order is an appealable order and it has initiated appropriate legal action as per law. It, also, does not expect any material impact on its financials, operations or other activities.  

 

“The company believes that it has a strong case on merits as it has been consistently classifying its parts and accessories over more than 3 decades following the General Rules of Interpretation, relevant section notes, chapter notes, and HSN Explanatory notes, which are supported by various judicial precedents. Such specific HSN classification has been accepted by the tax authorities over the years. Therefore, the company believes that the order lacks merit and stated tax demand is not maintainable as per law,” Bajaj Auto said.

 

Bajaj Auto is India’s biggest motorcycle exporter with two out of three bikes sold internationally carrying a Bajaj badge. The company is also the world’s largest manufacturer of three-wheelers, as claimed by its website.

 

It has sold over 18 million motorcycles in more than 70 countries. Besides, it is the first two-wheeler and three-wheeler company in the world to have reached a market capitalisation of Rs 1 trillion.