Lagos, one of Bajaj’s biggest export markets, bans commercial bikes, autos1 min read . Updated: 04 Feb 2020, 01:09 PM IST
- Shares of Bajaj Auto fell over 3% on the BSE
- Company's international business contributed about 43% to its net sales in Q3
New Delhi: Nigeria’s financial hub Lagos, one of the largest export markets for Bajaj Auto Limited, has banned commercial motorcycles and auto rickshaws.
Shares of Bajaj Auto fell over 3% on the BSE following the news of the ban and also after the company reported a 22% decline in domestic two-wheeler sales in January.
Lagos government imposed the ban on commercial motorcycles and auto-rickshaws from 1 February following a rise in fatal accidents on its city roads.
Allaying concerns, Rakesh Sharma, executive director, Bajaj Auto, in an interview with CNBC-TV18, said though Nigeria contributes about 25% to Bajaj Auto’s exports, business to Lagos was not hit significantly.
The city contributes only 6-7% to the company's overall motorcycle exports, Sharma said.
Bajaj Auto’s international business contributed about 43% to the company's net sales in the third quarter. Africa, driven by Nigeria, Congo, Uganda and Ethiopia, recorded a growth of 15% year-on-year in Q3 of FY20.
Bajaj Auto exported 201,601 units in January, up 15% from a year ago.