Hero Honda, Bajaj to trim production

New Delhi, June 10 (UNI) Country's two largest motorcycle makers Hero Honda Motors Ltd and Bajaj Auto Ltd have decided to cut production after interest rates at a five-year-high has curbed the demand.

Hero Honda's sales will be lower by 40,000 units in June as compared to 2,85,109 units sold in May, a company official said.

While, Bajaj will reduce 10 per cent of total production.

''Until financing by banks improves and interest rates stabilises, two-wheeler sales will remain a concern,'' industry experts said.

The country's motorcycle sales in May has fallen to 4,77,901 units compared with 5,71,367 units in the same month last year, a Society of Indian Automobile Manufacturers (SIAM) report said.

Similarly, cumulative sales of motorcycles in April-May fell 13.2 per cent to 9,40,992 units from 1.1 million in the same period a year earlier, it added.

UNI