Bajaj Auto has announced price reductions of ₹5,000–₹10,000 for its Freedom 125 motorcycle’s entry and mid-level variants. The price cut comes just five months after the model’s launch. According to UBS, this move signals potential downside risks to street estimates, particularly as select Pulsar variants have also undergone price revisions post-Diwali.
UBS has expressed concerns regarding Bajaj Auto’s recent price cuts for its Freedom 125 motorcycle, which come within just five months of the product’s launch. The price reductions, ranging from ₹5,000 to ₹10,000 for entry and mid-level variants, indicate weaker-than-expected retail demand. UBS flagged this as a sign of potential downside risks to street estimates.
The brokerage noted that Bajaj Auto has dispatched over 80,000 units of the Freedom 125 to dealers since its launch. However, retail figures from Vahan data reveal sales of only 34,000 units, creating an inventory buildup that likely prompted the price cuts. UBS also mentioned that select Pulsar variants saw price reductions post-Diwali, adding to concerns about the company’s pricing strategy.
Maintaining its ‘Sell’ rating on Bajaj Auto, UBS has set a 12-month target price of ₹7,900 per share, reflecting its cautious outlook.
As of 11:53 AM, Bajaj Auto shares were trading at ₹9,083.25, down 0.86% on the NSE.
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