The decline in Indian automobile industry is taking its toll on all companies, who are continuously battling the slowdown in demand. According to statistics for the month of August, numerous car makers throughout the country have reported a decline in their sales count. A similar pattern has been spotted as far as the market for two-wheelers is concerned, wherein some big names have announced a fall in sales for the month of August. Baja Auto, one of the biggest two-wheeler brand in the country, revealed its sales statistics for August 2013. As per reports released, Bajaj Auto sold a total of 278583 motorcycles in the same month. This count was 8.46 per cent less than the number achieved in the corresponding period of last year. A statement released by Bajaj Auto claimed that the firm managed to sell 304352 units in August 2012.
However, the company recorded a rise in the exports by around 10 per cent during the month. As compared to 131562 units exported in August 2012, Bajaj Auto exported 144160 motorcycles in the same month this year. Industry experts have claimed that the rise in exports is quite understandable as the continuously falling value of the rupee has benefited companies. In order to compensate the loss of revenue in the domestic market, firms in the auto industry are trying to maximise their exports. Bajaj Auto is also present in the commercial vehicle segment, in which it experienced a decline of 17 per cent during August. Statistics revealed by the company suggest that the Indian auto maker recorded sales of 33605 units during the month in comparison to 40554 commercial vehicles sold in the corresponding period in 2012.
If all these numbers are aggregated, then the total vehicle sales for Bajaj Auto in August 2013 accumulated to 312188 units. According to reports, this is a 9 per cent fall from the same month in 2012, when company sold 344906 vehicles. The reasons for this sort of decline in sales are quite clear and explicit. India has been hit by a severe financial crisis, which has culminated into the fall of the value of the rupee and widespread price rise throughout the country. Both these reasons along with the slowdown in demand have combined to form a major obstacle for auto makers operating in India. Recent reports have suggested that buyers are becoming increasingly reluctant about purchasing a new vehicle due to the rising petrol prices.
However, one positive that has come out of this is the increase in exports, something that the company expects to continue in the near future. In a recent television interview, Rahul Bajaj, Managing Director at Bajaj Auto, said, "Exports were overall up about 10 percent to about a 144,000 vehicles, up from 131,000 in August. That gain came primarily from our motorcycles. We exported close to 128,000 motorcycles, about 17 percent higher than August last year which was about 109,000.”
He also said the company is not likely to adjust the prices of its vehicles despite the advantage gain by exporters due the fall in the value of rupee. "In the Asian and the Latin American markets we really compete primarily with Japanese manufacturers and whatever it is they make whether it is out of Japan, Thailand, Brazil or Columbia we were always priced more or less at par. They have not lowered prices and therefore it does not make sense for us to lower prices," Bajaj was quoted as saying.
