In order to revive demand, country’s second largest two-wheeler maker, Bajaj Auto has slashed the prices of its products in Sri Lanka by 10-15% to compensate for a recent import duty hike in that country. The hit due to the price cut will be shared between the company and the dealers. However, the ratio of sharing of the price cut remains undisclosed.
The company had hiked the prices of motorcycles and three-wheelers by 29% and 32%, respectively, in Sri Lanka post local government in April increased import duty on vehicles to curb high import expenditure and the fuel bill.
Slashing prices in the country was essential for the company since Sri Lanka, accounts for almost 5-7% of the total volumes of the company. Sri Lanka government hiked the duties on cars from 120-291% to 200-350%, on three-wheelers from 51-61% to 100%, while import duty was hiked for two-wheelers from 61% to 100%.
Meanwhile, the company, reported a dip in June sale figure by 6% at 3,45,162 units against 3,66,657 in the same month last year. However, the exports for the month declined by 18% and the numbers of units sold were 1,16,062 units against 1,42,124 in the same period last year.
