Bajaj Auto reduces prices of its Sri Lankan portfolio

Friday 06 July 2012, 12:16 PM by

Bajaj Auto, the third largest motorcycle manufacturer globally, has announced a considerable reduction the prices of its portfolio for the Sri Lankan auto market in a bid to set off the burden of the surged prices after imposition of import duty hike. Sri Lanka, one of the largest markets for Bajaj Auto contributes to the company’s sales volume to the tune of almost 5 to 7 percent.

In April this year, the country pronounced hike in import duties, which resulted in highly diminishing exports affecting the sales to such an extent that the dealerships had no resort but to sell the inventory in hand.

Bajaj Auto has confirmed that the price cut will defined to up to 10 percent on three-wheelers and around 5 to 14 percent on two-wheelers in accordance with their model. Since this price cut initiative has been led by the automaker in a bid to reiterate the lost sales volume, the onus of the loss margins will be borne in an agreed ratio between the company and the dealerships.

Mr. Rakesh Sharma, the President of International Operations, Bajaj Auto confirmed the revision in prices but declined to disclose the details of the deal inked with the dealerships in regards to the price settlement.

In order to cover up its fiscal deficits, the Sri Lankan government hiked the import duty by 51 to 61 percent on three-wheelers and by 60 to 100 percent surge on two-wheelers. Owing to this, prices of the Bajaj manufactured two-wheelers and three-wheelers shot up by 29 percent and 32 percent, respectively.

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