India’s second-largest indigenous motorcycle manufacturer Bajaj Auto suffered a sharp domestic bike sales decline of 20 per cent in June, down to 254,544 units.
To make matters worse, about 2000 workers at its Chakan plant in Maharashtra state, east of Mumbai, downed tools and walked out on 25 June, demanding a large wage rise and shares in the company at a discounted rate. This as-yet unresolved strike is costing Bajaj a production loss of around 20,000 units weekly.
The company claims the dispute is illegal and has refused to negotiate a settlement with trade union officials. Bajaj chief operating officer Pradeep Shrivastava has announced that he will transfer production to another factory if the strikers don’t return to work.
Besides Bajaj-branded machines, the Chakan facility also builds KTM Duke models in the 125-390cc range for both export and domestic consumption.
In contrast, June was a glorious month for much smaller but fast-growing Japanese competitor Yamaha Motor India, which reported a 46.23 per cent Indian domestic sales increase at 35,561 units. Yamaha’s Indian outpost also increased its monthly bike exports by 69.24 per cent to 13,607 units.