Bajaj Auto spurts
Strong sales in December 2006 and a gain in market share in the motorcycle segment boosted Bajaj Auto further today.
The stock was up nearly 4% to Rs 2844. 89,735 shares changed hands in the counter on BSE. The scrip had risen 4.5% on Tuesday 2 January 2007 to Rs 2738.75 after the company reported strong sales for the month just gone by.
After a sharp setback in the scrip during mid-October 2006 following disappointing Q2 results, the scrip had hovered in the band of Rs 2509 to Rs 2840 since late October 2006. Earlier, the stock had tumbled Rs 2741.55 on 20 October from Rs 3121.80 on 17 October 2006.
Bajaj Auto said on Monday (1 January 2007) sales in December 2006 rose 24 percent to 214,928 units from a year ago. Bajaj’s motorcycle sales rose 26 percent to 187,063 units in December 2006, while those of all two-wheelers grew 21 percent to 187,179 units. Sales of three-wheelers were up 50 percent at 27,749 units. Exports more than doubled to 39,385 from 18,534 units a year ago.
Bajaj Auto said three wheeler and export sales continue to exceed expectations and this trend was likely to be maintained in the coming quarter.
Bajaj Auto also said it had registered a significant increase in market share in the motorcycle segment 35.5%. Bajaj is expanding its bike capacity to three lakh units per month by April 2007. It said Bajaj Kristal DTS-i, the first product from all new high tech scooter platform would be launched this month. Late last month, Bajaj Auto launched Pulsar 220 DTS-Fi in Pune.
Reports suggest that the two rivals Bajaj Auto and Hero Honda have firmed up plans to roll out between 8-12 new bikes each in calendar year 2007 while Kinetic, TVS, Honda Motorcycle & Scooter India, and Yamaha plan to launch between 3-5 new products each in the calendar year.
Bajaj Auto now has a strong 47 per cent share in the economy space. The Platina today accounts for nearly 44 per cent of Bajaj Auto's motorcycle volumes and together with the CT100, the entry segment now accounts for around 50 per cent of sales. On the flip side, the margins are thin in the 100cc economy segment as compared to those in the 125cc and the 150cc segments.
To protect its margins, Bajaj effected small price hikes of Platina and Discover models in November. Reports suggest that the company may effect another price hike of these two models in the new year. The hike is likely to be about Rs 500 per unit.
Bajaj also intends to reduce the marketing cost per vehicle by focusing on key brands.
The stock was up nearly 4% to Rs 2844. 89,735 shares changed hands in the counter on BSE. The scrip had risen 4.5% on Tuesday 2 January 2007 to Rs 2738.75 after the company reported strong sales for the month just gone by.
After a sharp setback in the scrip during mid-October 2006 following disappointing Q2 results, the scrip had hovered in the band of Rs 2509 to Rs 2840 since late October 2006. Earlier, the stock had tumbled Rs 2741.55 on 20 October from Rs 3121.80 on 17 October 2006.
Bajaj Auto said on Monday (1 January 2007) sales in December 2006 rose 24 percent to 214,928 units from a year ago. Bajaj’s motorcycle sales rose 26 percent to 187,063 units in December 2006, while those of all two-wheelers grew 21 percent to 187,179 units. Sales of three-wheelers were up 50 percent at 27,749 units. Exports more than doubled to 39,385 from 18,534 units a year ago.
Bajaj Auto said three wheeler and export sales continue to exceed expectations and this trend was likely to be maintained in the coming quarter.
Bajaj Auto also said it had registered a significant increase in market share in the motorcycle segment 35.5%. Bajaj is expanding its bike capacity to three lakh units per month by April 2007. It said Bajaj Kristal DTS-i, the first product from all new high tech scooter platform would be launched this month. Late last month, Bajaj Auto launched Pulsar 220 DTS-Fi in Pune.
Reports suggest that the two rivals Bajaj Auto and Hero Honda have firmed up plans to roll out between 8-12 new bikes each in calendar year 2007 while Kinetic, TVS, Honda Motorcycle & Scooter India, and Yamaha plan to launch between 3-5 new products each in the calendar year.
Bajaj Auto now has a strong 47 per cent share in the economy space. The Platina today accounts for nearly 44 per cent of Bajaj Auto's motorcycle volumes and together with the CT100, the entry segment now accounts for around 50 per cent of sales. On the flip side, the margins are thin in the 100cc economy segment as compared to those in the 125cc and the 150cc segments.
To protect its margins, Bajaj effected small price hikes of Platina and Discover models in November. Reports suggest that the company may effect another price hike of these two models in the new year. The hike is likely to be about Rs 500 per unit.
Bajaj also intends to reduce the marketing cost per vehicle by focusing on key brands.
posted by SY at 4:06 PM
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