Bajaj Auto Share Price Slips Following Mixed December 2024 Sales Data; Domestic Sales Fall, Exports Rise

Bajaj Auto, one of India's leading two- and three-wheeler manufacturers, witnessed a decline in its share price on Wednesday following the announcement of its December 2024 wholesales data. The stock dropped as much as 2.86% to Rs 8,550.00 on the BSE.

December Sales

In December 2024, Bajaj Auto reported total sales of 3,23,125 units, marking a marginal 1% decline from the 3,26,806 units sold in the same month last year. This minor drop in overall sales was attributed to a sharp decline in domestic sales, which overshadowed the growth in exports.

Domestic Sales Decline

The company's domestic sales plunged 15% year-on-year (YoY), with 1,62,420 units dispatched last month compared to 1,90,919 units in December 2023. The decline was particularly pronounced in the two-wheeler segment, which continues to face headwinds due to muted demand in the domestic market.

Export Growth

On a brighter note, exports surged 18% YoY, with 1,60,705 units sold overseas compared to 1,35,887 units in December 2023.

Two-Wheeler Segment

The two-wheeler segment, a core part of Bajaj Auto's portfolio, reported a 4% decline in wholesales, with 2,72,173 units sold in December 2024 compared to 2,83,001 units in the previous year. Domestic two-wheeler sales experienced a significant 19% drop YoY, falling to 1,28,335 units. However, exports in this category showed resilience, growing by 15% YoY to 1,43,838 units.

Commercial Vehicles

In contrast to the two-wheeler segment, Bajaj Auto's commercial vehicle (CV) sales posted an impressive 16% growth, with 50,952 units sold in December 2024 compared to 43,805 units in the same period last year. Domestic CV sales increased by 5% YoY to 34,085 units, while exports soared by a staggering 50% YoY to 16,867 units.

Market Reaction

The mixed sales report triggered a sell-off in Bajaj Auto shares, with the stock trading at Rs 8,650.15 on the National Stock Exchange (NSE) by 11 am, down nearly 2%.

The stock has faced pressure in recent months, losing over 29% in the past three months. However, on a longer horizon, Bajaj Auto has delivered robust returns, gaining 28% in the last year and an impressive 174% over the past five years.