Bajaj Auto sales down 10% in April 2007, exports up 64%

Bajaj Auto Ltd has announced the sales figure for the month of April 2007.

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			Apr 2007	Apr 2006	Growth %
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Motor Cycles		164,304		188,518		-13
Total 2 Wheelers	165,692		190,964		-13
3 Wheelers		24,360		21,159		15
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Total 2&3 Wheelers	190,052		212,123		-10
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Exports out of the above 51,926		31,175		64
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1. Motorcycles retail sales have rebounded owing to:
a) Bajaj Platina: Price reduction consequent to roll out at Bajaj Pantanagar on April 09, 2007; 6972 Platina's were produced by the Plant in its first month of operation.

b) Bajaj Discover DTS-i: Introduction of the Discover 135 DTS-i offering greater power and featuring primarily an all-black design scheme, Nitrox suspension, front disc brake, wider rear tyre, and tachometer.

c) Bajaj Pulsar DTS-i: Introduction of the Pulsar 200 DTS-i and the Pulsar 220 DTS-Fi, the new benchmarks in performance biking.

2. Primary sale to dealers is however lower on a YOY basis in order to reduce inventory at dealerships; it is expected that this correction will be completed in May 2007.

3. Pre-production of the "all new" motorcycle to be launched in Q2FYO7 is complete and vehicles have been given to customers for final validation. Production of this motorcycle, which is expected to upgrade a majority of 100 cc 4-stroke intenders, is to commence on schedule at Bajaj Waluj (Aurangabad).

4. 3-wheeler sales were upto plan whereas exports continue to exceed expectation.

5. Cost pressures are thus being contained by such positive changes in product mix and Plant operations.

Source : Equity Bulls

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