Bajaj Auto, a maker of two-wheelers, has raised prices for all its motorcycle models, according to media reports.
CNBC-TV18 has not independently verified this news but if media reports are to be believed then Bajaj Auto – across models – has hiked the price by at least 5 percent.
This has come as a big surprise given the slowdown that the automakers are already reeling under. There are talks of a goods and services tax (GST) rate cut, but it's unlikely to be announced in the September 20th meeting.
Morgan Stanley, in a research note, said that while the price hike is important given the weak demand and the fact that there will be a lot of incentives to push out the inventories, it may not help in terms of earnings for Bajaj Auto going forward.
They have maintained an 'equal weight' rating on the stock.