Bajaj Auto falls 2% as Sri Lanka raises import duty

Kingfisher employees have stopped short of saying that they would strike work in their letter to Vijay Mallya, the company chairman.

NDTV Profit Desk

02 Apr 2012, 11:35 AM IST

Maruti stall at Auto Expo 2012 in January this year

Bajaj Auto shares fell 2 per cent after Sri Lanka raised import tariff on petrol and diesel powered three wheelers. The import duty on petrol powered three wheelers was raised to 100 per cent against 51 per cent previously. Similarly, duty on diesel powered three wheelers rose to 100 per cent from 61 per cent.

Sri Lanka accounts for about 37 per cent of the three wheeler exports at 9,000 to 10,000 units per month. This is 9 per cent of the company’s revenue and 11 per cent of the operation profit.

Bajaj Auto exported 76,558 three wheelers in the quarter to December 2011.

The BSE Sensex rose 58 points or 0.3 per cent. Bajaj Auto is a component of the 30-share BSE Sensex.