Bajaj Auto Records 20% Growth in September 2024 Sales, Beating Market Expectations

Bajaj Auto Ltd. reported a remarkable 20% increase in its overall vehicle sales for September 2024, beating market estimates. The company sold 4.69 lakh units during the month, compared to 3.92 lakh units in September 2023, marking substantial year-on-year growth. This strong performance surpassed analysts’ expectations of 4.46 lakh units, according to a poll by CNBC-TV18.

Two-Wheeler Sales Drive Growth

The total sales included 3.12 lakh units sold in the domestic market, reflecting a 23% increase year-on-year. In the two-wheeler segment, domestic sales surged by 28%, showcasing robust demand in Bajaj Auto's key market. Exports also contributed to the growth, with 1.57 lakh units sold internationally, marking a 13% year-on-year increase.

Commercial Vehicle Segment

Bajaj Auto also reported a 4% growth in its domestic commercial vehicle sales for September 2024. The company has consistently maintained its market position in the commercial vehicle sector, and the export numbers in this segment continue to show promise.

Stock Market Reaction

Despite the positive sales figures, Bajaj Auto shares were trading down by 1.50%, at ₹12,160.60 on the BSE at 10:38 AM on October 1, 2024. Analysts have noted that the stock has rallied over 80% in 2024 despite the short-term decline. Global brokerage UBS currently holds a 'Sell' rating on the stock, while Jefferies expects 10-13% growth from Bajaj Auto in the near future.

Analyst Opinions and Future Outlook

The strong performance of Bajaj Auto’s two-wheeler segment, coupled with continued growth in exports, suggests that the company is well-positioned to maintain its growth trajectory. The domestic market’s demand surge has been fueled by factors such as improved consumer confidence and increasing disposable income.

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As Bajaj Auto enters the festive season, expectations remain high for continued sales momentum, driven by the company’s popular lineup of two-wheelers and commercial vehicles.

Source: CNBC-TV18