Bajaj Auto slips 5% on report of plans to cut production
1 min read . Updated: 27 Feb 2023, 12:28 PM IST
Premium- The two- and three-wheeler maker said that the cut would reflect pressure in Nigeria, a key export market
Shares of Bajaj Auto slipped 4.97 per cent to ₹3,658.65 in Monday's intra-day trade after a report said the two-wheeler giant is expected to take an up to 25% cut in motorcycle and three-wheeler production across its export-focused plants next month.
The two- and three-wheeler maker said that the cut would reflect pressure in Nigeria, a key export market.
Bajaj Auto, which makes Pulsar and KTM bikes, is expected to produce nearly 250,000-270,000 units next month, compared with average production of 338,000 units in each of the first nine months of fiscal 2022-2023, according to the Economic Times report.
"Indeed, there is a lot of uncertainty in Nigeria — both civil and economic — on account of elections and demonetisation. So, we have cut our shipments substantively until things settle," Bajaj Auto's Executive Director Rakesh Sharma told ET.
In January, Bajaj Auto's total vehicle sales fell 21 per cent at 2,85,995 units. The company's vehicle sales stood at 3,63,443 units in the year-ago period.
Total domestic sales rose 16 per cent to 1,73,270 units in the previous month as against 1,49,656 units in January last year. Exports declined 47 per cent year-on-year at 1,12,725 units.
Bajaj Auto had shipped out a total of 2,13,787 vehicles to various overseas markets in January last year.
Total two-wheeler sales dropped 25 per cent at 2,41,107 units in January this year as against 3,23,430 vehicles sold in the same month previous year, with domestic sales rose 4 per cent at 1,40,428 units and exports declining a whopping 46 per cent at 1,00,679 during the period under review over 2022.