One of the leading two wheeler manufacturers of India, Bajaj Auto Ltd, plans to slightly cut off its products' prices in Srilanka. To maintain the fiscal equilibrium of the country caused by the global recession, Srilanka government was insisted to hike the excise duty on both three wheelers and two wheelers by 51-61% and 60-100% respectively.
Anterior to the duty hike, Srilanka was a good market for the motorcycle companies and Bajaj was one among them. In Srilanka, the company has a share of 5-8% of its gross production. It's only a fact that the elevation on excise duty will panic the entire automobile industry further. And hence, Bajaj decided to reduce its products' price up to 14% depending on the models. Mr. Rakesh Sharma, President of International Operations at Bajaj Auto, confirmed the company's new strategy in terms of meeting the customers.
However, the loss will be divided between the company and dealers in Srilanka. The company hasn't revealed any further information on that. Post to the obligated duty hike, Bajaj Auto increased its models' price by up to 29% and 32% for motorcycles and three wheelers respectively. The company has a monthly sale figure of around 20,000 units of products in the country.
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