Bajaj Auto Sales down 13% in May 2007

Bajaj Auto Ltd has announced the sales numbers for May 2007. The company witnessed downturn in sales number with a fall of 13% compared to the figures of May 2006. The company sold 193,437 vehicles in May 2007 compared to 223,455 in May 2006.

The stock closed the day at Rs.2235, up by Rs.10.65 or 0.48%. The stock hit an intraday high of Rs.2254 and low of Rs.2205. The total traded quantity was 99858 compared to 2 week average of 300894.

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				May 		May		Change
				2007		2006		%
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Motorcycles 			167,008		196,120		-15
Total 2 WHEELERS		169,327		199,426		-15
3 wheelers			24,110		24,029		0
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TOTAL 2 & 3 Wheelers 		193,437		223,455		- 13
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Exports out of the above	49,203	  	32,179		 53
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1. Owing to the 22% fall in the sales of 100cc motorcycles, the motorcycle industry as a whole de-grew by 13.4%.

2. On the other hand, the 125cc+ motorcycle segment recorded a relatively healthy growth of 10%.

3. These contrasting trends reinforce the Company strong conviction that the industry will shortly witness an increasingly rapid shift away from underperforming and overpriced 100cc motorcycles to 125cc+ motorcycles offering far greater value in both design and performance.

4. The Company continued to lead the 125cc+ motorcycle industry with approximately 45% market share in May 2007. It does so largely by virtue of just two products: the Discover DTS-i and the Pulsar DTS-i. This reflects both a strong brand position as well as a favorable cost position.

5. With the launch of an all new non-100cc 4-stroke motorcycle in FY08Q2, the Company expects to catalyze this impending industry shift, thereby improving both its profitability as well as its market share.

This all new motorcycle platform will be based on the extremely fuel efficient development of the Company DTS-i technology called DTS-Si, i.e. Digital Twin Spark Swirl Induction, for which an initial capacity of 50,000 motorcycles per month is currently being established at Bajaj Waluj.

6. Bajaj 3 wheeler sales continue to be steady while export growth maintained its robust momentum.

7. Bajaj has been selected for the EEPC All India Export Awards for its sterling performance in exports in FY07.

YTD 2007-08

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				April-May		April-May		Change
				2007 			2006			%
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Motorcycles			331,312			384,638			-14
Total 2 Wheelers		335,019			390,390			-14
3 Wheelers			48,470			45,188			7
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Total 2 & 3 Wheelers		383,489			435,578			-12
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Exports out of the above	101,129			63,894			58
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Source : Equity Bulls

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