Bajaj Auto slumps to 52-week low as February sales dip; Bajaj Finserv also takes a hit

Shares of Bajaj Auto tumbled nearly 3 per cent on March 3, hitting a fresh 52-week low of Rs 7,683 apiece following a steep decline in domestic two-wheeler sales for February. Bajaj Finserv, which finances Bajaj Auto’s vehicles, also faced selling pressure, sliding over 2 per cent to trade at Rs 1,831 per share.

Sales slowdown drags Bajaj Auto stock

According to a stock exchange filing, Bajaj Auto reported a 14 per cent decline in domestic two-wheeler sales, with total units sold dropping to 1.46 lakh from 1.71 lakh in February 2024. However, two-wheeler exports surged 23 per cent year-on-year to 1.53 lakh units, offering some respite.

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In the commercial vehicle category, the company’s domestic sales rose by 3 per cent, while exports declined by 2 per cent. Overall, Bajaj Auto’s total domestic sales slipped 11 per cent to 1.83 lakh units, while exports climbed 21 per cent to 1.69 lakh units.

Bajaj Auto leads losses in BSE Auto Index

The sharp fall in Bajaj Auto’s stock made it the worst performer in the BSE Auto Index. The downturn was further exacerbated by a broader market decline, impacting other auto stocks.

Hero MotoCorp, Ola Electric in focus

Bajaj Auto’s competitor, Hero MotoCorp, also faced a challenging session, with shares falling nearly 2 per cent to Rs 3,630. The automaker’s total sales for February stood at 3.88 lakh units, marking a steep 17 per cent decline from 4.68 lakh units in February 2024. Hero MotoCorp’s domestic sales fell 20 per cent year-on-year to 3.57 lakh units.

Meanwhile, EV maker Ola Electric reported robust sales, crossing the 25,000-unit mark in February, driven by its expanding S1 portfolio and a retail network of 4,000 stores across India. The company claimed a dominant 28 per cent market share in the electric two-wheeler segment.

As the auto sector grapples with fluctuating demand, analysts will be closely monitoring upcoming trends in domestic and export markets to gauge future performance.