Bajaj Auto plans electric motorcycles by FY28, expands Chetak production

New Delhi: Bajaj Auto is planning to enter the electric motorcycle segment in FY28 and expand production of its Chetak electric scooter as competition intensifies in India’s electric two-wheeler market. As per Reuters, the automaker is looking to increase Chetak’s monthly production capacity to 60,000 units from the current 50,000 units over the next few months. The decision follows higher-than-expected demand for electric two-wheelers during the quarter, which exceeded the company’s available supply. Dinesh Thapar, Chief Financial Officer, Bajaj Auto, said during the company’s post-earnings call that it was working to increase Chetak production to address the supply gap. He also said that in Chetak, demand has outpaced supply and the company is trying to augment supply in the next couple of months. Electric vehicles, including scooters and three-wheelers, accounted for around 30% of Bajaj Auto’s domestic revenue during the quarter. The planned launch of electric motorcycles will extend the company’s EV portfolio beyond scooters and commercial vehicles. Bajaj Auto currently competes with established two-wheeler companies such as TVS Motor and Hero MotoCorp, along with electric vehicle companies including Ather Energy. The company’s electric push comes as manufacturers invest in new products, distribution networks and production capacity to increase their share of India’s growing electric two-wheeler market. Bajaj Auto also reported a 42.3% increase in its first-quarter profit to Rs 2,983 crore, supported by higher demand in domestic and overseas markets. Revenue during the quarter rose 36.3% to Rs 16,462 crore. Exports remained one of the company’s major growth drivers. Overseas volumes increased 52% to 6,36,005 units, supported by growth in Latin American markets and a recovery in Africa. Domestic two-wheeler sales rose 11% during the quarter. This was lower than the wider industry’s growth of 20.3%, according to data from the Society of Indian Automobile Manufacturers. Demand in the automobile market improved following the tax reduction announced in September. However, manufacturers continued to face pressure from higher commodity, energy and freight costs amid disruptions linked to the US-Iran conflict. Bajaj Auto’s expansion comes as rival TVS Motor also reported an increase in quarterly profit, supported by demand for higher-margin motorcycles.