The continuous decline in the two-wheeler industry witnessed since January has hit the sales of Bajaj Auto, resulting in an almost 15 percent dip in its profit at Rs 226.47 crore for the first quarter ended June 30. Sales of Bajaj’s two-wheelers dropped 13 percent at 4,94,042 units versus 5,68,187 units a year ago, the company said in a statement.

Bajaj has attributed rising interest rates and constraints on credit and tightening of financing norms by Banks on the lower sales volumes. The company also witnessed de-growth in the 100cc motorcycle segment, while 125cc+ motorcycles recorded a healthy growth of 16 percent. Bajaj however does not mind this since it plays into managing director Rajiv Bajaj’s strategy to shift consumers to higher cc motorcycles.

Bajaj has already launched the Pulsar 200 DTS-i (in February 2007), Discover 135 DTS-i (in April) and Pulsar 220 DTS-Fi (in June) as part of its game plan to provide customers with motorcycles that have greater value in both design and performance. Bajaj will also be launching an all new motorcycle in this category by September.

Meanwhile, sales of three-wheelers remained flat during the quarter to June, while exports saw a healthy expansion of 52 percent with sales of 149,804 units during the quarter. The value of these exports was Rs 51.4 crores.