Automobile major Bajaj Auto has decided to cut down on manufacturing in the two-wheeler and three-wheeler sections by up to 25% at its export-focused plants. Uncertainties generate the result in Nigeria, the company’s leading market, the Economic Times stated on February 27, quoting numerous people aware of the progress.

Consequently, shares plunged more than 3.5% in early trade on February 27, the lowest decline in the past five months. It is also the lowliest performer in the Nifty Auto index. Over the sequence of the last month, the stock has lost over 5.89%.

According to the report, Bajaj Auto is anticipated to manufacture around 250,000-270,000 units in March, which is ominously lower than its regular production of 338,000 units during the early nine months of FY23.

The situation may result in a decline in the complete capacity utilisation rate at Bajaj Auto plants to below 50%. The company has a connected capacity of 550,000 units each month.

Nigeria, Africa’s most crowded nation, had planned to start circulating recently designed 200, 500, and 1,000 naira notes last year. Initially, it gave people until January 31 to get free of their old currency notes, which would no longer be lawful tenders after the date.

The bank said it was required to lessen the amount of cash in the movement to improve control liquidity, control inflation, and transfer towards a cashless economy.