Mumbai: With the opposed influence of be aware ban persevering with to hamper two-wheeler gross sales, Bajaj Auto Managing Director Rajiv Bajaj on Thursday mentioned the thought of demonetisation was itself "mistaken" and it’s incorrect guilty solely the execution aspect of it.
"If the answer or the thought is true, it’s going to go like a scorching knife by means of butter…if the thought just isn’t working, for instance, demonetisation, don't blame execution. I believe your thought itself is mistaken," Bajaj mentioned on the annual Nasscom management discussion board right here.
Prime Minister Narendra Modi had on November eight final yr scrapped all of the Rs 500 and Rs 1,000 notes, with a view to verify the black cash.
Large money rationing was launched as the brand new substitute notes had been briefly provide. The ban on 86 per cent of the entire foreign money price Rs 15.55 trillion in circulation impacted financial exercise throughout sectors with the consumption-driven ones being essentially the most affected.
Notably, the two-wheeler gross sales are but to get well from the influence of demonetisation and business knowledge releases during the last two months have been exhibiting a droop.
The business was wanting ahead to higher gross sales on the again of fine monsoon and an acceleration in rural financial development, which drives consumption.
Bajaj Auto's whole home gross sales, together with these of two-wheelers in addition to three-wheelers, had been down 16 per cent to 1,35,188 models in January from 1,61,870 models bought in the course of the yr in the past interval.
For December, when the money crunch was the very best, Bajaj Auto noticed its home bike gross sales contracting by 11 per cent at 1,06,665 models final month as towards 1,20,322 models in the identical month a yr in the past.
Trade physique SIAM had mentioned in November that two-wheeler gross sales had been at 12,43,251 models as towards 13,20,552 within the year-ago month, down 5.85 per cent. Bike gross sales had been additionally down 10.21 per cent at 7,78,178 as in comparison with eight,66,696 models in December 2015.
Likewise, scooter gross sales, that are urban-centric, had been additionally down 1.85 per cent at three,88,692 models as towards three,96,024 models in November 2015.
Earlier than demonetisation, the two-wheeler gross sales in October had been up eight.72 per cent at 18,00,672 models as in comparison with 16,56,304 models within the year-ago month. Bike gross sales had been additionally up 7.37 per cent in October 2016 at 11,44,516 models as in comparison with 10,65,925 models in October 2015.