Domestic CV sales and motorcycle exports save the blushes for Bajaj Auto in Q3 FY2018

Two-wheeler domestic major Bajaj Auto has reported a Q3 FY2017-18 revenue of Rs 6,596 crore, an increase of 16 percent YoY.  The company sold a total of 1,001,469 units, up 18 percent (Motorcycles - 818,510: CVs – 182,959) in the domestic and export market.

The EBITDA was Rs 1,325 crore, up 17 percent with a margin of 20.6 percent, while the profit after tax was Rs 952 crore, up 3 percent. The company says it has witnessed its highest ever quarterly sale of commercial vehicles in the domestic market, selling 110,123 vehicles in Q3 FY2018. The company sold a total of 466,431 two-wheelers in the domestic market, up 2 percent (Q3FY17: 459,427) and exports of 352,079 units, up 22 percent.

Domestic market scenario
Bajaj Auto has been witnessing a slowdown in its domestic motorcycle sales. The reasons can be attributed to various factors including the underperformance in sales of the Dominar brand, while the market has seen no clarity on the future line-up of its best-selling Pulsar model, the entry-level commuter offering CT100 also has seen its sales coming down, along with its Avenger and V12 and V15 brand sales almost flatten.

Bajaj states it expects to improve overall absolute volumes in the domestic market, on the back of the recent launched products like the new Discover 110, Discover 125 and the new Avengers – Cruise 220 and Street 220.

On a positive note, the CV portfolio, which helped the company post a strong result, Bajaj claims that the CV sales have also been the highest ever for a quarter (domestic  105% + exports 48%); 182,959 units. 

The company attributes the domestic sales were largely driven by Maharashtra (now an open market) and Delhi (new permits). Bajaj Auto says it continues to be a market leader, with an overall share in domestic market of around 62 percent.