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Fresh permits to boost Bajaj three-wheeler volumes

Fresh permits to boost Bajaj three-wheeler volumes

Mumbai: Bajaj Auto Ltd, the country’s largest three-wheeler maker by sales, said its passenger carriers will receive a boost as Karnataka is issuing fresh permits.

In the first quarter earnings call with analysts on Monday morning, Kevin Dsa, president, finance, said the company expects an order of 25,000 three-wheelers from Karnataka. The state has floated permits for purchase of 40,000 new three-wheelers.

Sales of Bajaj’s commercial vehicles expanded to 129,764 units in the three months ended June compared with 99,918 units a year ago, a growth of some 30%.

The Pune-based firm sold 1.09 million vehicles in the quarter, which includes motorcycles as well, an increase of 18% over the same quarter a year ago.

The company is also gearing up for a proposed removal of an export incentive from 30 September that is likely to impact its net profit by as much as 8% to 9%. Dsa said a price hike of exported models will ensure margins are guarded.

“This (price hike in international markets) is a very strong statement by the company and takes care of the worries related to the dip in margins," should the government go ahead with its decision to scrap an export incentive, said Mahantesh Sabarad, an analyst at Fortune Equity Brokers Ltd.

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