Economic Times reported that auto major Bajaj Auto cut prices of its 2 wheelers as well as 3 wheelers in Sri Lanka in order to bring back volumes lost post the excise duty hike in the country. Sri Lanka accounts for almost 5 to 7^ of the total volumes of the company.

The company indicated that they have cut the prices of their 3 wheelers by 10% while the 2 wheeler segment saw price cuts to the tune of 5 to 14% depending on the model of the product.

Sri Lanka is one of the biggest markets for the auto major in terms of export and accounts for 17 to 18% of the export sales. The island market accounts for 5 to 7% of the total sales of the company. Post the duty hike, exports to Sri Lanka have virtually been zero with dealers just looking to clear the pending inventory of the products.

The hit due to the price cut will be shared between the company and the dealers. The ratio of sharing of the price cut was not disclosed by the company.

Mr Rakesh Sharma president of International Operations at Bajaj Auto confirmed the price cut but refrained from indicating the deals of agreement reached between Bajaj Auto and the dealers in Sri Lanka. Bajaj Auto had in its earlier interactions with ET Now indicated that it was sending team to Sri Lanka to assess the situation post the excise duty hike by the Sri Lankan government.

Source - Economic Times

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