 "CLSA downgrades Bajaj Auto on weak demand; shares fall")
CLSA downgraded Bajaj Auto to ‘sell’ from ‘underperform’, while maintaining its ‘sell’ rating on Hero MotoCorp and cited weak demand growth, a consumer shift to scooters over motorcycles, and rising competition.
CLSA added that the share of scooters in industry sales continued to rise at the expense of motorcycles, while 125 cc bikes sales also rose, segments in which both Hero and Bajaj are weaker.
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Reuters[/caption]
The brokerage said this shift in sales trend would most benefit Honda Motorcycle and Scooter India, the domestic two-wheeler unit of Honda Motor Co.
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Bajaj Auto shares fell 1 percent, while Hero fell 0.5 percent.
Reuters