Bajaj Auto shares fall due to falling domestic sales

Shares of Bajaj Auto Ltd. fell on November 4 after the release of sales data for October, which fell short of expectations. Total sales for October rose just 1.7% year-on-year to 4.79 lakh units, lower than the expected 4.89 lakh units. Domestic sales declined 8% YoY to 3.03 lakh units while exports increased 24% YoY to 1.75 lakh units.

In the commercial vehicle segment, domestic sales fell 6% YoY, while export sales rose 46% YoY. The domestic two-wheeler segment witnessed an 8% YoY decline in October, while exports grew 22%.

As of closing on November 4, 2024, shares of Bajaj Auto Ltd. trading at £9,534, down 3.46% from its previous close. Shares of Bajaj Auto Ltd. have grown by a total of 76% over the past year and by 42% since the beginning of the year.

Rakesh Sharma, chief executive, said October was a month of destocking for Bajaj Auto from a wholesale perspective, although retail sales grew by 30%. Sharma noted strong retail growth in the 125cc and above segment with sales increasing by 20%. Managing Director Rajeev Bajaj predicts FY25 sales could reach around 4.5 million units, driven by exports and new models like the Pulsar 125.