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Bajaj Auto drops as lanka raises import duty-news02042012


Shares of Bajaj Auto dropped over 2% touching the day's low of Rs1,638, after Sri Lanka raised import tariff on petrol and diesel powered three wheelers. The import duty on petrol powered three wheelers was
raised to 100 per cent against 51 per cent previously. Similarly, duty on diesel powered three wheelers rose to 100% from 61%.

Sri Lanka accounts for about 37% of the three wheeler exports at 9,000 to 10,000 units per month. This is 9% of the company’s revenue and 11% of the operation profit.

Bajaj Auto exported 76,558 three wheelers in the quarter to December 2011.
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