Bajaj Auto reports 33% drop in July sales; demand for two-wheelers improves

x Bajaj Auto has reported a 33 per cent decline in sales in July this year, selling as many as 381,530 units compared to 2,55,832 units in July 2019.  Despite a drop in sales, the company has registered an overall rise in demand for two-wheelers. The Pune-based company sold 2,78,097 units in June this year.

Bajaj Auto CFO Soumen Ray recently said the company is witnessing a strong revival in demand for two-wheelers in both domestic and international markets, but the three-wheeler segment is yet to pick up.

Domestic sales suffered 23 per cent loss YoY and sold 1,58,976 units last month versus 205,470 units in July 2019. The company's exports in July stood at 96,856 units as against 1,76,050 in July 2019.

The domestic sales of commercial vehicles dropped maximum at 81 per cent, followed by exports of commercial vehicles at 57 per cent. The two-wheeler sales of the company stood at 1,52,474 units in July compared to 170,978 units during the same period last year, recording an 11 per cent drop in sales. In June, Bajaj Auto had reported 27 per cent decline in the two-wheeler sales.

The company, meanwhile, is still gauging if the demand for two-wheelers is a pent-up one or if the segment is already on a revival path.

In June, the company had reported a 31 per cent decline in auto sales as the industry moved towards a slow recovery after the nationwide lockdown.

The company recently reported a 53 per cent fall in profit at Rs 528 crore in April-June quarter of FY21 against Rs 1,125.67 crore in the corresponding period of last fiscal. Total revenue from operations stood at Rs 3,079.24 crore in Q1 as against Rs 7,755.82 crore in the same period last year.

Also read: Bajaj Auto Q1 results: Profit halves to Rs 528 crore amid coronavirus crisis

Also read: Bajaj Auto reports 31% decline in June sales