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Bajaj Auto vehicle sales up 5% in Feb-news03022012


Bajaj Auto, India's second-largest motorcycle maker, posted a 5% rise in February vehicle sales, in line with a demand recovery in the industry. The company, which also makes scooters and three-wheeled commercial vehicles, sold 343,777 vehicles in February, while exports surged 20% to 122,727, it said in a statement.

Motorcycles disappointed with poor domestic show. Three-wheelers also grew marginally by 4% YoY but were lower than our expectations.

Due to lacklustre domestic performance, Bajaj auto is loosing domestic market share to HMSI and HeroMotocorp
View: The management talked about revival in sales due to the launch of new Pulsar and a new bike in commuter segment in May 2012.

Previous guidance of 4.5 million volumes in FY12 has been lowered to 4.4 million recently. However, with lacklustre performance of Feb 2012, the revised guidance also seems a challenge.

The stock remains under pressure post February 2012 volumes.

....more info



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