Bajaj Auto has reportedly cut prices of its products in Sri Lanka to bring back the volumes lost due to the excise duty hike in the country.
According to reports, the company indicated that there was a cut in retail prices of 3-wheelers by 10% while the 2-wheeler segment saw price cuts to the tune of 5-14 per cent, depending on the model.
Sri Lanka accounts for 17-18% of export sales. The island market accounts for 5-7% of total sales. Post the duty hike, exports to Sri Lanka have virtually been zero with dealers just looking to clear the pending inventory of the products, reports stated.
The hit due to the price cut will be shared between the company and the dealers. The ratio of sharing of the price cut was not disclosed by the company, reports added.