Bajaj Auto will resume its exports to Egypt as Egyptian government lifts ban
Snapshot: Egypt, which is second biggest export market for Bajaj after Sri Lanka, had banned the imports in order to boost its nestling automobile industry
The last few months have not been very fruitful for Bajaj Auto. Firstly, it was overtaken by Honda Motorcycles and Scooters India (HMSI) to claim the second spot in the two-wheeler segment, and then in February, the Egyptian government imposed a ban on the imports of two and three-wheelers.
However, things have started to look better now for the Indian two and three-wheeler giant as Egypt has again opened its arms for the imports of the common man's transport. With the ban lifted, Bajaj is all set to export 5,500 units of three-wheelers and 3,500 units of two-wheelers to Egypt in June. Prior to the ban, Bajaj was exporting a total of 70,00 three-wheelers and 50,000 two-wheelers annually. Exports account for almost 40% of Bajaj's revenue in a financial year. In the last quarter of FY 2014, Bajaj exported a total of 397,836 units which was 9% more than the previous year whereas the domestic sales declined at a rate of 12%. In FY 2014, Egypt also contributed one fourth of the total sales made by Bajaj Auto.
"We got to know from our distributor that the ban on import of two-wheelers and three-wheelers has been lifted. We are very happy that the market has come on stream for us," said S Ravikumar, President, Business Development and Assurance, Bajaj Auto.
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