Bike News

Bajaj to speculate Rs 750 crore to spice up EV, premium bike manufacturing | Autocar India

Written by Ravi Kapoor

The Chetak electrical scooter has posted a 50 p.c progress within the second quarter of the present monetary 12 months in comparison with Q1.

Bajaj Auto plans to speculate Rs 750 crore in capital expenditure within the ongoing monetary 12 months, FY23, to arrange services for its electrical two- and three-wheelers in addition to ramping up its premium bike volumes. This type of funding is among the many highest annual investments made by the corporate for adoption of recent applied sciences and capability creation in latest instances.

Bajaj Auto EV funding: growth of its manufacturing facility

Dinesh Thapar, chief monetary officer (CFO), Bajaj Auto, says the present funding is a step-up over the previous. The funding is clearly allotted in the direction of establishing an EV facility for two-wheelers and three-wheelers, in Waluj, Maharashtra. Moreover this, part of the funding shall be spent on the growth of a brand new manufacturing facility in Chakan that shall be used to make Bajaj’s upcoming premium bikes, Thapar says. 

In December 2021, Bajaj Auto established its Rs 300-crore electrical two-wheeler plant in Pune’s Akurdi area the place it at the moment manufactures Chetak electrical scooters. The plant has been designed to fabricate 5,00,000 electrical two-wheelers every year. The corporate had earlier hinted at introducing an electrical mannequin below the Husqvarna model as properly which suggests Bajaj Auto can even have a presence on this evolving section too. 

“We now have steadily elevated our presence in 40 cities throughout the nation,” Rakesh Sharma, govt director, Bajaj Auto, says. “We’re additionally working in the direction of increasing the EV portfolio to cowl totally different rising segments and geographies. Over the subsequent 18 months or so, you will notice three or 4 introductions which is able to assault new segments, not the identical section, however will probably be below the Chetak Umbrella.”

Talking of its Chetak electrical scooter, Bajaj Auto posted a 50 p.c progress, with the Chetak crossing 10,000 models within the second quarter of FY23 as in opposition to 6,200 models within the first quarter. 

Within the premium section, the corporate has already added to its Pulsar model a brand new 250cc mannequin final 12 months and is planning to give you extra fashions. The corporate provides that the brand new Bajaj Pulsar platform shall be expanded additional to strengthen the corporate’s portfolio within the premium motorcycling area. 

Renewed give attention to 125cc bikes 

By way of the bike section efficiency, whereas there was muted demand for entry-level 100cc bikes, significantly in rural areas, the corporate is witnessing vital progress for 125cc bikes. Bajaj, lately launched the CT 125X  and also you learn our evaluate right here.

Based on Sharma, since FY20, the business has reshaped itself in the direction of the 125cc section, and it now constitutes nearly 50 p.c of the business, whereas it was nearly 40 p.c three years in the past. Therefore Bajaj plans to speculate its assets in the direction of the 125cc plus section and enhance its profitability and market share.

About the author

Ravi Kapoor