| Motorcycles: |
| Industry |
| (a) Industry slowdown witnessed from January 2007 continued. Motorcycle industry sales declined by 11% in Q1/ 2007-08. |
| (b) Rising interest rates, constraints on credit and tightening of financing norms by Banks impacted sale of motorcycles. |
| (c) De-growth was more pronounced in the 100cc motorcycle segment. |
| (d) On the other hand, the 125cc+ motorcycle segment recorded a healthy growth of 16%. |
| Bajaj Auto |
| (a) The industry-wide slowdown was reflected in Bajaj Auto's sales decline of 13%. |
| (b) During the quarter, the company has initiated major structural changes in its distribution and logistics channel. The change has resulted in reduction of inventory at dealerships by around 45,000 motorcycles. |
| (c) In line with the company's strategy of shifting the customer from underperforming and overpriced 100cc motorcycles to 125cc+ motorcycles offering far greater value in both design and performance, it has launched the following products: |
| "� Pulsar 200 DTS "� i, - launched in February 2007. |
| "� Discover 135 DTS "� i, - launched in April 2007. |
| "� Pulsar 220 DTS - Fi - launched in June 2007. |
| (d) With the launch of an all new non-100cc 4-stroke motorcycle in September 2007, the company intends to further shift such customers. The pre-production of the new motorcycle was completed in June 2007. |
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