Last Updated : 01-09-2014 16:49

 

 
 

Bajaj reduces prices of three-wheelers and bikes in SL

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Auto major Bajaj Auto cut prices of its 2-wheelers as well as 3-wheelers in Sri Lanka in order to bring back volumes lost post the excise duty hike in the country. Sri Lanka accounts for almost 5-7 per cent of the total volumes of the company.

The company indicated that they have cut the prices of their 3 wheelers by 10 per cent while the 2 wheeler segment saw price cuts to the tune of 5 - 14 per cent depending on the model of the product.

Sri Lanka is one of the biggest markets for the auto major in terms of export and accounts for 17 - 18 per cent of the export sales. The island market accounts for 5 - 7 per cent of the total sales of the company. Post the duty hike, exports to Sri Lanka have virtually been zero with dealers just looking to clear the pending inventory of the products.

The hit due to the price cut will be shared between the company and the dealers. The ratio of sharing of the price cut was not disclosed by the company.

Rakesh Sharma, President of International Operations at Bajaj Auto confirmed the price cut but refrained from indicating the deals of agreement reached between Bajaj Auto and the dealers in Sri Lanka. Bajaj Auto had in its earlier interactions with ET Now indicated that it was sending team to Sri Lanka to assess the situation post the excise duty hike by the Sri Lankan government.

Sri Lanka had hiked duty on 3 wheelers by 51 per cent - 61 per cent and the duty on 2 wheelers by 60 - 100 per cent in April to curtail its fiscal deficit in April 2012.

Prices of Bajaj's motorcycles were hiked by around 29 per cent and three-wheeler prices increased by around 32 per cent in Sri Lanka after the import duty hike.

Bajaj Auto sells around 20,000 units of products to Sri Lanka every month. (The Economic Times)

 
 

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Comments 

 
-69+9 # Anura 2012-07-05 14:43
Thank You, sirs
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-34+9 # Grammar policeman 2012-07-05 14:43
This is what happens when punitive taxes are levied.
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-6+98 # Don Quixote 2012-07-05 14:46
Surely there are ENOUGH of these on the roads ?

What is going on ???
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-23+52 # Pandula 2012-07-05 15:26
Stop buying an Indian products
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-7+15 # podi miniha 2012-07-05 19:40
I will when I can afford Japanese and European vehicles. Until then its kiss the hand you cant bite
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-12+17 # Kamal 2012-07-05 20:28
why should we stop buying indian products? can srilanka produce it's own bike? it's own car? it's own medicine? it's own rice? it's own sugar? etccccc
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-11+39 # RationalCitizen 2012-07-05 15:31
Why we still import these Indian craps? Can't we produce our own 3wheelers and motor bikes with better quality and lesser price? If we can make cars, SUVs, buses (micro) this is not a big deal.
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-2+8 # Dee 2012-07-06 08:35
making cars does not mean simply fixing the wheels, seats and body accesories. There is much more to it.
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-0+2 # RationalCitizen 2012-07-06 14:59
Who says no? I we can do that in SLwhy cannot 3wheelers and bikes?
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-1+48 # lankaman 2012-07-05 15:49
time to increase tax on 3 wheelers again
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-0+36 # Calistus Jayatilleke 2012-07-05 16:20
What will stop the government of Sri Lanka from hiking the duty again to offset the discounted prices.
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-8+48 # kumara 2012-07-05 16:58
Instead of a decrease, price should be doubled to stop this nonsense vehicle on roads
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-16+11 # blazinfire 2012-07-05 17:13
it may be nonsense, but people get a living from those vehicle,
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-28+6 # Godagampala Rohana 2012-07-05 17:10
Good news. Appreciate very much.
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-11+24 # Sim 2012-07-05 17:11
Poor mans mode of transport.
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-34+13 # Kiris Baba Amaray 2012-07-05 17:15
Ella Kiri, now the other Brands of 2 & 3 wheelers also will cut down their prices. However, Bajaj - good start, people are behind your brand.
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-3+6 # Godagampala Rohana 2012-07-05 17:19
Why not all the items including foodstuffs also cut down their prices. Hay Govt. what do you say about this? Yes, in SL too much of taxes levied, do you agree?
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-16+4 # Jayantha Jayamanne 2012-07-05 17:21
Thanks to Bajaj. Geneuine business will prosper, good luck !!!!
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-2+19 # godaya 2012-07-05 17:40
pl banned the import of three weelers
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-1+10 # Rajiv 2012-07-05 19:39
They may reduce the price and parts of the final product. So Quality may come down.
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-3+5 # pee da mossa 2012-07-05 20:38
Will this increase the demand for dollar and push the rupee towards 140.
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-2+11 # ceylon 2012-07-05 20:49
Do we have enough road roads in this small country to accommodate all these vehicles ?
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-2+14 # Wasantha 2012-07-06 09:06
3wheel is not POOR MAN vehicle.Poor man use public transport or walk. Dont try to give un-realistic picture on issue. 3wheel required but whenever anything over dossed.. that u can call a dissaster. 3wheels has become a dissaster to all other road using personal. It has time to evalute issue permit in regional base allow this mean of transport w/o dumping money out of country.
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-5+3 # wimala 2012-07-06 11:02
It is a poor man's vehicle. Not everyone can afford cars you know. To many srilankan families 3 wheelers are their livelyhood as well as their family vehicle. Don't think any1 drives a 3 wheeler for amusement they do it to feed their families.
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-2+4 # Chatura 2012-07-06 15:50
Your shortsightednes s will be your eventual downfall. Actually its safe to assume that your completely blind. There is at least ten 3-wheelers for every other vehicle. DO NOT MAKE COMMENTS WITHOUT KNOWING THE REAL SITUATION. Most Murders, robberies and other nefarious activities are done by people who drive these contraptions. Hope this was not what you meant when you you said 'their livelihood'. In short, the majority of 3-wheel drivers/owners are thugs and pimps who have no idea whatsoever of a drivers code of conduct. This is a fact. They make the time we spend on the road a living hell. If I have one wish that would be to MAKE ALL 3-WHEELS DISAPPEAR FROM THE FACE OF THIS EARTH INCLUDING THE NO.1 SOURCE WHERE THEY COME FROM THAT IS INDIA. Amen.
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-1+6 # Sam 2012-07-06 11:32
Just imagine the margin that they keeping from a unit after all cost of production taxes to Indian government. Still they make profit. All this are our money pumping to India.
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Harin in Passara
Series win
Aren’t they tasty?
Chinese beauties visit Minneriya