The two-wheeler maker is stepping up its EV strategy with new electric motorcycles and higher Chetak production amid intensifying competition.
Bajaj Auto is planning to launch electric motorcycles in fiscal 2028 as it steps up its efforts to strengthen its presence in India’s rapidly growing electric two-wheeler market.
The company also plans to increase production of its Chetak electric scooter to meet rising demand. Bajaj Auto Chief Financial Officer Dinesh Thapar said demand for the Chetak exceeded available supply during the latest quarter, prompting the company to expand manufacturing capacity.
The company is targeting an increase in Chetak production capacity to 60,000 units per month from the current 50,000 units in the near term.
Electric vehicles, including electric scooters and three-wheelers, contributed around 30% of Bajaj Auto’s domestic revenue during the quarter. The company is facing increasing competition from established two-wheeler manufacturers such as TVS Motor and Hero MotoCorp, as well as electric vehicle-focused companies including Ather Energy.
Bajaj Auto reported a 42.3% year-on-year increase in first-quarter profit to ₹29.83 billion ($299.62 million). Revenue rose 36.3% to ₹164.62 billion, supported by strong demand in both domestic and international markets.
Exports continued to be a key growth driver, with overseas sales rising 52% to 636,005 units during the quarter. Growth in Latin America and a recovery in African markets contributed to the increase.
Domestic two-wheeler sales grew 11% during the quarter, below the overall industry growth of 20.3%, according to data from the Society of Indian Automobile Manufacturers (SIAM).
Bajaj Auto’s expansion plans come as competition intensifies in India’s electric two-wheeler segment, with manufacturers increasing investments in new models and production capacity. The company’s rival TVS Motor also reported strong quarterly profit growth, supported by demand for premium motorcycles.
