Indian motorbike sales soar

The slide of Bajaj scooter sales has stopped

Bajaj Auto, India's biggest scooter maker, beat all profit expectations after reporting a 167% rise in the second quarter.

"The profit increase at Bajaj will be due to an increase in motorcycle sales, while the fall in scooter sales has been arrested," says Subrata Ray, an analyst at DBS Securities.

Rickshaw sales have fallen as consumers buy motorbikes

Bajaj has long been the largest maker of scooters in India, the world's second-largest two-wheeler market.

The company has suffered in recent years as consumers moved on to faster, more powerful motorcycles like those produced by Hero Honda Motors, India's largest motorcycle maker.

Earlier this month, Bajaj reported its motorcycle sales jumped 34.5% in the half year to September.

Result u-turn

Bajaj, which produces motorcycles in collaboration with Japan's Kawasaki, said net profit rose to 1.44bn rupees (£21m; $29.9m) as net sales climbed 7.2% to 10.57bn rupees.

Analysts had forecast net profit to rise by about 75%.

In the last financial year to March, before the launch of the new motorcycles, Bajaj's profit dived 60.6% as sales dropped by more than one-third.

Bajaj has also benefited from lower raw material costs and a lower wage bill from a voluntary retirement scheme offered to workers last year.