Bajaj Auto plans to increase Chetak electric scooter production to 80,000 units monthly by March 2027. The company's EV segment has now turned profitable with double-digit margins. Additionally, management is scouting locations for a sixth manufacturing plant to support capacity expansion across both premium motorcycles and electric models.
Bajaj Auto has announced a strategic plan to increase its monthly electric scooter production to 80,000 units by March 2027. The company is currently working to resolve supply chain challenges that have kept actual output around 40,000 units despite a total capacity of 60,000 units. By clearing these bottlenecks, the automaker intends to align its manufacturing with the rising market demand for its Chetak line of electric vehicles.
The most significant takeaway for investors is the improvement in the EV segment's financial performance. Unlike the initial phase of electric vehicle adoption, which often required heavy investment and lower returns, the Chetak business has now shifted into a profitable segment. The company reported that the EV division generated over ₹2,000 crore in revenue during the July-September quarter, with the Chetak model now delivering double-digit profit margins. This indicates that the company is successfully scaling its electric portfolio while maintaining business efficiency.
To support long-term growth, the company is actively scouting for locations to set up its sixth manufacturing facility. This expansion is designed to accommodate the growing production requirements for both its premium internal combustion engine motorcycles and its expanding range of electric models. The broader objective of this initiative is to increase the company's total annual manufacturing capacity from 7 million units to over 9 million units in the medium term. This capacity expansion will be essential for the company to maintain its competitive position in an industry where demand is shifting between traditional and electric powertrains.
The electric two-wheeler market in India is currently witnessing intense competition, with companies like TVS Motor, Ola Electric, and Ather Energy vying for market share. Bajaj Auto's ability to scale production depends heavily on its ability to manage the supply chain, particularly for critical components like batteries and semiconductors. While the shift to double-digit profitability is a positive indicator, the company faces the constant need to balance competitive pricing with operational costs to protect these margins.
Investors should monitor the upcoming developments regarding the site selection for the new manufacturing facility and the timeline for resolving the existing supply chain constraints. Tracking whether the company can successfully scale to 80,000 units while sustaining double-digit margins will be the key indicator of how effectively the company is executing its transition toward electric mobility.