Bajaj Auto rides high on strong 3-wheeler outlook; stock gains over 5%

Margin gains from the category could, however, be offset by push in entry-level bike segment

The stock of Bajaj Auto gained over 5 per cent on Friday after the company announced an expansion of three-wheeler capacity to cater to a spurt in demand, as well as tailwinds from regulatory changes on three-wheeler permits. The company is expanding its three-wheeler and quadricycle capacity from 0.84 million to a million units per annum. 

Demand for three-wheelers has gone up as new permits are being released in Maharashtra, Karnataka, Andhra Pradesh and Delhi. In fact, three-wheeler sales for the company have been growing at a rapid clip over the last few quarters, with growth (including exports) in August