Bajaj Auto Share Price Falls on UBS says 'Sell', Predicts 35% Downside

On July 8, Bajaj Auto share price dropped over 1%, trading at ₹9,534 in the morning, after international brokerage UBS issued a 'sell' recommendation following the launch of the company's CNG bike, the first of its kind in India.

UBS set a target price of ₹6,250, suggesting a potential downside of 35% from the current market levels. The brokerage believes that the future lies in electric vehicles (EVs) and that CNG motorcycles will not slow the market's shift toward electrification. Bajaj Auto recently introduced a 125cc CNG motorcycle, priced between ₹95,000 and ₹1,10,000.

Despite this innovation, the CNG bike is expected to affect the 100-110cc and entry-level 125cc motorcycle segments in the medium term, where Hero currently holds a 66% market share.

In June, Bajaj Auto reported a 5% year-on-year growth in total vehicle wholesales, including exports, reaching 3,58,477 units. The company sold 3,40,981 two-wheelers and commercial vehicles during this period. Total domestic sales, including commercial vehicles, increased by 8% to 2,16,451 units compared to 1,99,983 units in the same month last year. Total exports saw a 1% rise to 1,42,026 units from 1,40,998 units in the previous year.

At 9:50 am, Bajaj Auto share price were trading at ₹9,580, down 0.7% from the previous close on the NSE. Despite the recent dip, the share price has surged 41% since the beginning of the year.

In other news, Bajaj Auto’s Freedom 125 has been hailed as a "gamechanger," promising "freedom from petrol imports, harmful emissions, skyrocketing petrol prices, range anxiety, and the struggle to find charging stations." At the launch event, a visibly emotional Bajaj reflected on his career, saying, "I miss my father deeply today," marking what could be his 100th product launch in 34 years. The development of this technology took Bajaj Auto two and a half years. The Freedom 125 enables commuters to switch seamlessly between CNG and petrol with the click of a button, even while riding.