Bajaj warns drought may deepen the slowdown in entry-level bikes

Bajaj Auto's Rakesh Sharma said lower-income buyers have been postponing purchases for two quarters, and he expects drought to make this worse. He spoke after the company's Q2 FY27 results.

Why he is worried

• Drought is hurting farm incomes in Maharashtra, southern India and the Northeast.
• Inflation is adding pressure.
• Lenders may tighten credit in crop-failure areas. He said this is not serious yet but may become so.

The numbers

• Bajaj's own 100-110cc sales fell 26% to 1,78,794 units in April-September 2026. The company chose profit over volume in this segment by raising prices.
• Across the industry, the combined 100-110cc and 110-125cc segments grew about 5% to 48.6 lakh units, but their share of motorcycle sales fell to 70% from 74%.
• Motorcycles of 150-350cc grew about 31%.
• In the first 16 days of the festive period, EVs and 150cc+ motorcycles grew about 24% together. Bajaj's sales in these categories rose 32%.
• SIAM data for Q2 shows scooters up 27.7% and motorcycles up 7.4%. Total domestic two-wheeler sales rose 15.2% to 64.3 lakh units.

What this means for you

• Small-town dealers and finance agents who depend on entry-level bikes may see a slower season after Diwali.
• Premium bikes, scooters and EVs are growing faster, so sales and service roles there may be steadier.

The 26% fall is for Bajaj's own sales, not for the whole industry.