Bajaj Auto: Dec 2010 Auto sales Update: Kotak Securities

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n BAL's December 2010 volumes were lower than anticipated and were in fact the
lowest reported by them in the current financial year.
n During the month, the company's overall dispatches totaled 276,803 units versus
252,004 units dispatched during December 2009.
n Sequentially volumes were down by 7.5%.
n Major disappointment came in from the motorcycle segment where volumes at
243,675 units were the lowest for the current financial year.
n In the 3W segment, the company's sales were 5% higher YoY and 3% lower
MoM at 33,128 unit
n Exports was the only segment to show both YoY and MoM growth. Exports for
the month was 95,388 units.

n BAL's performance in the past couple of months has been subdued. One of the
reasons seems to be the inventory correction at the dealers end.
n Given our positive outlook on the 2W demand, we expect BAL to bounce back
with monthly volumes in excess of 300,000 units during 4QFY11.
n To achieve their FY11 target of 4mn units the company will have to do  a
monthly run-rate of ~375,000 during the balance part of the current financial
year.