Bajaj Auto Commits to Increasing E2W Sales Through New Releases and Expansion

Bajaj Auto is gearing up to boost the monthly sales of its electric scooter Chetak by introducing new models and expanding its network. This move is aimed at solidifying the company’s position as the third-largest player in the electric two-wheeler market in the near future.

The company has revealed that the launch of a new variant, along with network expansion and improved supply chain support, will help increase the monthly sales of its electric two-wheelers in the coming months.

Rakesh Sharma, Executive Director of Bajaj Auto Ltd, mentioned that supply chain improvements have increased the company’s capacity. Currently, the electric scooter Chetak is available in 140 cities through 160 exclusive sales and service outlets, covering about 80% of the high-speed EV market. As a result, the company has achieved monthly sales of 10,000 units, and its retail market share has grown steadily from 4% in FY23 to 14% in December 2023.

Bajaj Auto expanded its EV range with a new premium variant of Chetak by the end of December 2023. Sharma stated that the company aims to further increase its volumes, targeting a monthly figure of 15,000 units in the current quarter. Additionally, the company plans to introduce one more electric two-wheeler product in the first quarter of the next fiscal to further boost its sales.

In terms of network expansion, Bajaj Auto is looking to sell its electric scooter in 200 cities soon. This strategic approach has led to the displacement of Ather Energy from the third position in the electric two-wheeler market, with Bajaj Auto assuming the third-largest player position after Ola and TVS Motor.

Furthermore, Chetak has generated revenue of more than ₹1,000 crore during the first 9 months of this fiscal. Dinesh Thapar, Chief Financial Officer of Bajaj Auto Ltd, noted that the revenue from Chetak in the December 2023 quarter was almost equal to the revenue generated in the previous fiscal year’s 9 months.

Analysts at LKP Securities believe that Chetak’s expanding coverage and positive response will significantly contribute to the company’s numbers in the coming years.

The article was published on January 26, 2024.