Bajaj Auto EV EBITDA Hits Double Digit as Business Reaches 25% of Revenue

Electric vehicles now account for 25% of Bajaj Auto’s total revenues, with the company’s EV portfolio delivering double-digit EBITDA margins, marking a clear shift from a new business opportunity to a profitable growth engine.

Speaking to the media post the Q3 FY26 earnings, Rakesh Sharma, Executive Director at Bajaj Auto, said the rapid scale-up across electric scooters and electric three-wheelers has fundamentally altered the economics of the business.

“Twenty-five percent of our domestic revenues are now EV,” Sharma said, adding that Bajaj Auto has emerged as one of the largest players in India’s electric mobility space.

The turnaround has been driven by operating leverage as volumes have ramped up across products, led by the Chetak electric scooter and the company’s electric three-wheeler portfolio. Bajaj Auto recently expanded the Chetak range with a new series, a move that has helped broaden the addressable market and accelerate volume growth.

“As we have achieved this scale, the portfolio has now gone into double-digit EBITDA. Just one year back, we were negative,” Sharma said, pointing to the profitability inflection in the EV business.

Strong Position in Electric Three-wheelers

Bajaj Auto has also consolidated its leadership in electric three-wheelers, a segment that has emerged as a key contributor to scale and margins. Sharma said the company currently holds around 33% market share in the e-auto segment, based on recent industry data.

The company expects demand to remain strong, particularly in last-mile and shared mobility applications, as customers increasingly recognise the total cost of ownership advantages of electric three-wheelers.

Supply-chain Risks Being Addressed

Alongside growth, Bajaj Auto has stepped up efforts to de-risk its EV business from supply-side disruptions, especially in critical materials such as rare earth elements.

Sharma said the company has begun addressing high dependencies in the supply chain, including heavy rare earths (HREs) and light rare earths (LREs), following recent global disruptions.

“Whenever such disruptions happen, the supply chain needs to address very high levels of dependency, and we are addressing them,” he said, noting that diversification and alternative sourcing are long-term efforts rather than quick fixes.

EVs Move Into the Mainstream

With EVs contributing a quarter of revenues, margins turning positive, and market leadership in electric three-wheelers, Bajaj Auto’s electric two- and three-wheeler business has moved firmly into the mainstream of the company’s operations.

Rather than chasing fixed targets for EV penetration, Sharma said the focus remains on maximising each business on its own merits and letting the revenue mix evolve accordingly.