Car News

We have been recommending a STRONG SELL on BAJAJ AUTO when it was at
1600 levels. As said, its market share is decreasing at a very fast
speed due to its fierce competition, diminishing brand value and
demand for Bajaj Auto in market. Sales of Bajaj Auto is down by 34 %
in December 10 of selling mere 148287 two wheelers in domestic market
compare to Oct 2010 in which it sold 219389 two wheelers. All its
competitors- Hero Honda, TVS, Honda, Yamaha, Mahindra, Suzuki recorded
an increase in sale ranging from 1% to 10% in Dec 10 compare to Oct
10. Its clear that within 2 months Bajaj Auto is steadily losing its
stand in its industry. Looking at the increase in capacity that Hero
Honda, Honda, TVS, Suzuki , Yamaha, Mahindra are undergoing, it won't
take time for Bajaj to further record sales of below 1 lakh soon.
Bajaj Auto is also facing strong rivalry in three wheeler segment with
Piaggio, Mahindra, TVS increasing their capacity.
Bajaj Auto has failed to keep up to the technological development that
its competitors are giving to their consumers. As mentioned by us
earlier, Bajaj's preference amongst consumers have slipped from 2nd
position 2 years back to 4th position in 2 wheelers currently.
The research performed by us in auto sector is very immense and out of
my more than 1 year research in this sector we recommended a SELL on
Bajaj Auto as we studied very deeply the falling position of Bajaj
Auto. We continue to recommend a SELL on this counter and target it to
fall further to 1100 level.

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