Shares of Bajaj Auto slumped by nearly 2% on Tuesday despite reporting an increase in its September sales.

What Happened: The company’s total sales for the month increased to 4.7 lakh units, rising 20% year-on-year from 3.9 lakh units. Of these, domestic sales accounted for 66.4% of its total sales whereas exports accounted for 33% of the sales. In the month of August, the company had sold 3.9 lakh vehicles.

In the two-wheelers segment, Bajaj saw total sales rise to more than 4 lakh vehicles, marking a 22% increase from the same period a year ago. Among this, 2.6 lakh vehicles were sold in the domestic market whereas 1.4 lakh units were exported. In the commercial vehicles segment, more than 52 thousand vehicles were domestically sold and over 16 thousand were exported. Cumulatively, Bajaj’s commercial vehicles segment recorded 6% increase in its sales to over 69 thousand units.

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In the month of August, Bajaj sold over 3 lakh two-wheelers and more than 69 thousand commercial vehicles, marking a year-on-year rise of 18% and 11% respectively.

On a year-to-date basis, the automaker sold more than 23 lakh vehicles, registering a 12% increase from the same period last year. 14.7 lakh vehicles were sold within the country whereas 8.56 units were exported. Total sales of two-wheelers and commercial vehicles increased by 12% and 9% for the same duration.

Last month, brokerage firm CLSA cited concerns over increased competition in the premium motorcycle segment, thus maintaining its "underperform" rating on Bajaj Auto. CLSA set a target price of ₹7,000 for the company. The company recently launched two entry-level motorcycles, which CLSA described as promising but warned about competitive pressures.

Price Action: Bajaj Auto was down 1.8% to ₹12,123.20 on Tuesday morning.

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