India’s second largest motorcycle manufacturer, Bajaj Auto Ltd has recorded 1% drop in its October sales. However, the company expected motorbike sales to develop in the second half of the existing fiscal (2007-08).

The company has sold 278,176 vehicles during October 2007, as compared to 279,578 vehicles in October 2006.

Bajaj has sold 63,000 units of its new XCD 125 cc bike since its debut in early September.

The company is also raising monthly capacity of the bike to 75,000 units from November.

Rajiv Bajaj, company’s Managing Director said, “With this, approximately 65 percent of Bajaj motorcycle sales are in the growing and more profitable 125-250 cc premium segment.”

Sales of its three-wheelers came down 2% to 28,001 units in October, whereas exports climbed up 38% to 55,572 units.

From the start of the fiscal year in April, motorcycles sales remained down 11%, whereas sales of three-wheelers are down 3%. Exports were up 45%.

Sales of three-wheelers continued to be muted, while exports were expected to grow, with exports of the XCD bike starting in January, Bajaj said.