Bajaj Auto Ltd witnessed a 4 percent surge in its share price on March 7, marking the sixth consecutive session of gains fueled by several positive developments. These include an extension of the electric vehicles incentive scheme and encouraging monthly sales figures.
The upward momentum in the stock propelled Bajaj Auto’s market capitalization above Rs 2.5 lakh crore for the first time.
As of 1:50 pm, the stock was trading at Rs 8,920 on the National Stock Exchange, reflecting a 3.6 percent increase from the previous close. Over the past six trading sessions, the stock has surged by 13 percent.
Earlier in the day, the government announced an extension of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme. Additionally, the monthly sales data from vehicle retailers highlighted Bajaj Auto’s strong sales performance and market share gains in February.
Bajaj Auto’s Share Buyback:
On March 6, the company initiated its Rs 4,000-crore buyback offer. Bajaj Auto aims to repurchase 40 lakh equity shares from investors through the tender route. The buyback scheme is set to conclude on March 13.
Extension of FAME II Scheme:
Headquartered in Pune, Bajaj Auto, which operates in the electric three-wheelers and two-wheelers space, stands to benefit from the government’s decision to extend the FAME-II scheme by four months. This extension aims to avoid any disruptions in the electric vehicle ecosystem. The government has allocated Rs 500 crore to subsidize electric three-wheelers and two-wheelers until July 31.
Positive Retail Sales Data from FADA:
According to data from the Federation of Automobile Dealers Associations (FADA) for February, Bajaj Auto’s market share in the two-wheeler segment rose to 11.9 percent from 10.9 percent in the corresponding period last year. The company recorded sales of 1.7 lakh vehicles in February, marking a 22 percent increase from the previous year.
Bajaj Auto emerged as a leader in the three-wheeler OEM segment, having sold 34,677 units in February compared to 29,883 units sold a year ago. However, its market share in this segment declined to 36.5 percent from 39 percent year-on-year.
On March 1, Bajaj Auto informed the exchanges that its sales in February had surged by over 23 percent year-on-year, reaching 3.46 lakh units.
