Bajaj Auto slips 3% on weak December sales figures

Shares of Bajaj Auto saw a decline of 3 per cent in early trading on January 1, 2025, as the company's December sales numbers failed to meet investor expectations. The lacklustre performance has cast a shadow over the stock, which had delivered a robust thirty per cent return in 2024.

December sales miss estimates

Bajaj Auto reported a 1 per cent year-on-year dip in total sales for December, recording 3.23 lakh units compared to 3.26 lakh units in the same period last fiscal. This figure also fell short of market projections of 3.55 lakh units, disappointing analysts and investors alike.

Domestic sales under pressure

The company’s domestic sales took a significant hit, with a fifteen per cent drop to 1.62 lakh units, down from 1.90 lakh units in December 2023. The decline reflects muted demand in the domestic two-wheeler segment, further weighing on market sentiment.

Export outlook shows promise

While domestic sales faltered, analysts remain optimistic about Bajaj Auto’s export business. Emkay Institutional Equities highlighted an ongoing recovery in exports, particularly in key markets like Africa and Latin America. Challenges in Nigeria, one of Bajaj Auto’s critical African markets, are reportedly easing, while sustained growth is visible in Latin America.

Stock performance and market sentiment

At 9:29 am on the NSE, Bajaj Auto shares were trading at Rs 8,652, reflecting the market's reaction to the weaker-than-expected sales data. Despite this setback, analysts suggest the steep correction seen in the past may have been excessive. The April-August 2024 period witnessed a significant dip in Bajaj Auto's stock price, making it one of the worst-performing auto stocks during that time.

Outlook for 2025

Looking ahead, improving export dynamics could help Bajaj Auto regain investor confidence. However, the domestic market remains a concern, with a need for better demand recovery to bolster overall sales. The company's ability to navigate macroeconomic challenges and leverage growth opportunities in export markets will be crucial for sustaining its long-term performance.

Bajaj Auto will need to address domestic demand headwinds while capitalizing on global opportunities to stabilize its market position in 2025.