Bajaj Auto rose 2.69% to Rs 2858.10 at 9:41 IST on BSE after the company said it will enhance its production capacities of 3-wheelers and quadricycles to 1 million per year.
The announcement was made after market hours yesterday, 6 September 2018.Meanwhile, the S&P BSE Sensex was down 154.95 points, or 0.41% to 38,087.86.
On the BSE, 19,000 shares were traded in the counter so far compared with average daily volumes of 28,000 shares in the past two weeks. The stock had hit a high of Rs 2874.50 and a low of Rs 2826.30 so far during the day. The stock hit a record high of Rs 3,472.60 on 2 February 2018. The stock hit a 52-week low of Rs 2,604 on 26 July 2018.
Bajaj Auto said it will shortly enhance its production capacities of 3 wheeler and quadricycles to 1 million per year as the government announces end to permits.
At the Society of Indian Automobile Manufacturers (SIAM) convention yesterday, 6 September 2018, Minister for Transport Nitin Gadkari made a historic announcement moving to a "no-permit" regime for auto rickshaws powered by alternate fuels.
Bajaj Auto is the market leader with 86% market share in the alternate fuel 3 wheelers and is therefore delighted with this development.
This announcement is a further fillip for the Bajaj 'Qute', which comes with CNG/LPG fuel options, as more and more state governments approve the Qute for taxi applications.
Over the last 12 months, there has been an up-surge in three wheeler demand in India, owing mainly to permits released in Maharashtra, Karnataka, AP and Delhi. Consequently during the period 17 September to 18 August, Bajaj Auto has sold 435,000 three wheelers representing a growth of 88% and has strengthened its leadership in this segment.
Alongside, the company's three wheeler and Qute volumes in international markets continue to grow at a good clip of 65% year to date.
On a consolidated basis, net profit of Bajaj Auto rose 24.50% to Rs 1041.78 crore on 36.38% rise in net sales to Rs 7267.19 crore in Q1 June 2018 over Q1 June 2017.
Bajaj Auto manufactures motorcycles and three-wheelers.
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