Bajaj Auto: Exports improve, but domestic recovery more crucial

The trend of falling two-wheeler exports has reversed while domestic sales still lag the sector

The Bajaj Auto stock was up four per cent on Friday after the company reported year-on-year (y-o-y) growth in sales for the first time in six months. Led by seven per cent growth in exports, overall volumes in August were up three per cent to 335,000 units compared to the year-ago month. Commercial (three-wheeler) vehicle sales, which accounted for 15 per cent of overall volumes, continued to do well both in the domestic as well as export markets, posting a growth of 12-13 per cent in both markets. But, for the Street’s sentiment to improve further, it is crucial