Bajaj Auto Share Price In Focus As Rakesh Sharma, Joint MD, Expects October Sales To Improve As Supply Issues Ease

Bajaj Auto shares remained under pressure on Thursday after the company reported weaker-than-expected September sales growth, but management expects volumes to improve in October as supply-chain constraints ease.

Rakesh Sharma, Joint Managing Director of Bajaj Auto, said in an interview with CNBC-TV18 that October sales are expected to be better, pointing to an improvement in supply conditions. The comments come after the automaker's September sales were affected by supply-side issues.

Bajaj Auto reported total sales of 5,38,443 units in September, up 5% from 5,10,504 units a year earlier. The growth was led by exports, which jumped 32% to 2,43,987 units, while domestic sales declined 9% to 2,94,456 units.

The September performance was below market expectations of around 11–12% growth and triggered a sharp fall in the stock. Bajaj Auto shares fell as much as 8% during Thursday's session, while the broader Nifty Auto index also remained under pressure.

Bajaj Auto October Sales Outlook

Sharma's comments provide a fresh outlook after the company's September volumes came in below expectations.

According to Sharma, October sales should be better as supply-chain issues ease. The improvement is particularly relevant for the domestic business, which saw a 9% year-on-year decline in September even as exports recorded strong growth.

Bajaj Auto's two-wheeler sales stood at 4,51,494 units in September, up 5% year on year. Domestic two-wheeler sales fell 12% to 2,39,414 units, while exports increased 34% to 2,12,080 units.

Commercial vehicle sales rose 9% to 86,949 units during the month. Domestic commercial vehicle sales increased 5% to 54,685 units, while exports rose 17% to 32,264 units.

The company enters October with the festive season underway, making supply availability an important factor for monthly sales.

Bajaj Auto September Sales And Stock Reaction

For the April-September period, Bajaj Auto's total sales increased 24% year on year to 29.87 lakh units. Exports rose 47% to 15.11 lakh units, while domestic sales increased 7% to 14.76 lakh units.

The half-year numbers underline the strong contribution from international markets to the company's overall volume growth. The contrast was more visible in September, when exports rose 32% while domestic sales fell 9%.

Bajaj Auto shares came under heavy selling pressure after the September sales announcement, along with other automobile stocks. The company's management commentary on October volumes now shifts the focus towards whether improved supply availability can translate into stronger domestic sales during the festive period.

Rakesh Sharma is an Executive Director at Bajaj Auto and oversees management and strategy, global business operations, marketing and sales, and project management.

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