Bajaj Auto, India’s second-largest electric scooter manufacturer by volume, is set to significantly ramp up its Chetak e-scooter production capacity. The company aims to expand manufacturing from the current 50,000 units to 60,000 units per month in the immediate term, with this increase expected to kick in over the next couple of months.
Dinesh Thapar, Chief Financial Officer of Bajaj Auto, confirmed the expansion during a media conference call following the company's first-quarter earnings announcement. He noted that demand for the Chetak continues to outpace current capacity, underscoring the brand's growing strength and product appeal.
Surging Demand Drives Expansion
The decision to augment production comes amid a substantial rise in overall electric scooter demand across India. Industry monthly volumes have climbed from an average of approximately 120,000 units in FY26 to nearly 175,000 units during the first quarter of the current fiscal year, reaching close to 200,000 units per month by the end of June. Bajaj Auto’s Chetak itself recorded its highest-ever quarterly volumes, approaching 130,000 units.
Financially, Bajaj Auto’s electric scooter business turned EBITDA positive for the quarter ended June 30, 2026, a significant improvement from its breakeven status just a couple of quarters prior. Thapar highlighted that both the company's electric two-wheelers and three-wheelers now boast double-digit EBITDA margins.
Broader Capacity Enhancements and Policy Views
The capacity expansion is not limited to electric vehicles. Bajaj Auto plans an overall 20% increase in manufacturing capacity across all its businesses through a two-phase program. The first phase will add roughly 10% capacity over the next three to four months, followed by another 10% by the end of the financial year or early in the subsequent fiscal year. This comprehensive expansion will cover motorcycle plants, commercial vehicle facilities at Waluj, and Chetak production at Akurdi. The company's current installed manufacturing capacity across all businesses stands at approximately 600,000 units per month.
Commenting on the recently introduced Delhi EV policy, which bans the registration of internal combustion engine (ICE) two-wheelers from April 2028 and three-wheelers from January 2027, Thapar expressed concerns. He stated that such policies leave customers with very little choice, arguing that purchasing decisions should remain with the consumer. Bajaj Auto currently sells about 2,000 ICE vehicles monthly in Delhi.
Future of Electric Motorcycles
Regarding electric motorcycles, Thapar revealed that plans are under development, with some launches potentially occurring in FY28. He emphasized, however, that the company’s priority for electric motorcycles would likely be export markets initially, before focusing on the domestic market.