Bajaj Auto share price was trading nearly 2 percent lower in early trades as overall market sentiment was negative. Bajaj Auto opened the session at Rs 9,150 and touched an intraday low at Rs 8,927. The stock could remain lower today as overall market sentiment has turned cautious. Global markets were trading with losses after US President Donald Trump introduced tarrifs against Canada, China and Mexico.

Strong Overall Sales Performance

In January 2025, Bajaj Auto recorded 381,040 units in total sales, reflecting a 7% growth compared to 356,010 units sold in January 2024. This increase demonstrates the company's ability to maintain momentum despite varying market conditions across different regions.

The company’s diverse product portfolio, ranging from commuter bikes to high-performance motorcycles and commercial vehicles, continues to attract customers worldwide. Bajaj Auto's strategy of balancing domestic operations with aggressive international expansion is paying off, particularly through its export business.

Domestic Sales Decline Amid Challenging Market Conditions

While total sales grew, domestic sales faced a setback, with a 9% drop to 208,359 units in January 2025. This compares to 230,043 units sold during the same period last year. The decline in domestic sales reflects ongoing market challenges such as high inflation, fluctuating raw material costs, and changing consumer demand patterns.

Domestic demand has also been impacted by increased competition and regulatory shifts aimed at promoting electric vehicles (EVs), which have led to price sensitivity in the two-wheeler segment. However, analysts believe Bajaj Auto is well-positioned to recover as market conditions stabilize and demand for mid-range motorcycles improves.

Export Growth Surges 37%

Bajaj Auto's export segment showed exceptional performance, with sales jumping 37% year-on-year to 172,681 units in January 2025, compared to 125,967 units in January 2024. This growth underscores the company's strong global presence, particularly in key markets across Africa, South Asia, and Latin America.

The surge in exports can be attributed to several factors:

Strategic alliances with distributors and dealerships in emerging markets.
Increasing demand for Bajaj's low-cost, fuel-efficient motorcycles and commercial vehicles.
Improved global logistics and supply chain optimization.
With continued investment in global operations, Bajaj Auto is expected to maintain strong export momentum in the coming months.

Commercial Vehicle Segment Performance

Bajaj Auto, a dominant player in the commercial vehicle space, saw stable demand for three-wheelers in both domestic and export markets. Despite the decline in overall domestic sales, commercial vehicles showed resilience, supported by government infrastructure initiatives and last-mile connectivity projects.

With many countries still relying on affordable and efficient three-wheelers for transportation, the segment is poised for sustained growth. Analysts anticipate that Bajaj Auto’s commercial vehicle exports will continue to be a key revenue driver.

Competitor Landscape and Sector Insights

Bajaj Auto operates in a highly competitive market with key rivals such as Hero MotoCorp and TVS Motor Company. While Hero MotoCorp maintains leadership in the domestic two-wheeler market, Bajaj Auto’s strength lies in its international presence and strategic focus on exports.

Similarly, TVS Motor has been gaining traction through its diversification into electric two-wheelers and premium motorcycle models. To stay competitive, Bajaj Auto has been investing in R&D for EV technologies and expanding its partnership with KTM AG to introduce high-performance motorcycles.

The global automotive industry is undergoing a transformation, with rising demand for EVs and stricter emission norms influencing traditional players. Bajaj Auto's hybrid strategy—balancing its core combustion engine products with gradual EV adoption—places it in a strong position to adapt to evolving market trends.