In FY25, electric vehicles contributed over ₹5,500 crore in revenue — comprising nearly 20% of domestic sales — underlining Bajaj’s segment leadership.
30 May 2025 | 9611 Views | By Darshan Nakhwa and Ketan Thakkar
Bajaj Auto Ltd., a leading player in India’s electric two-wheeler segment, is set to launch a new entry-level Chetak electric scooter in June. The move is part of the company’s broader strategy to further strengthen its position in the rapidly growing electric mobility market.
The new variant will build ...
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Bajaj Auto Ltd., a leading player in India’s electric two-wheeler segment, is set to launch a new entry-level Chetak electric scooter in June. The move is part of the company’s broader strategy to further strengthen its position in the rapidly growing electric mobility market.
The new variant will build upon the success of the Chetak 35 Series platform, which debuted in December 2024. According to Rakesh Sharma, Executive Director at Bajaj Auto, the Chetak brand has seen a remarkable surge in market share, jumping from 13% in Q4 of the financial year 2023–24 to 25% in Q4 FY25 — a 12-percentage-point gain. The Q4 market share also propelled Chetak to the number one spot in India’s electric two-wheeler market.
“With the introduction of the third 35 Series variant, the 3503, at the end of May 2025, as well as the impending launch of a new variant in June — an upgrade to the entry-level and high-selling 2903 — the Chetak portfolio will become very potent. Further expansion of this portfolio is envisaged in FY26 to address emerging sub-segments,” Sharma said.
The Bajaj Chetak currently comes in four variants: 2903, 3503, 3502, and 3501. The Chetak 2903 is the base model with a starting price of ₹99,998, while the top-end Chetak 3501 costs ₹1,32,000.
To support this expansion, Bajaj Auto has increased its retail footprint, boasting 310 Chetak experience centres and over 3,000 points of sale across India. Sharma expressed confidence that these initiatives would help Bajaj Auto build a sustainable and profitable leadership position in FY26.
In FY25, Bajaj Auto’s domestic business registered its highest-ever revenue, achieving 12% year-on-year growth, fueled by strong double-digit growth across both two- and three-wheeler segments. Notably, electric vehicles contributed over ₹5,500 crore in revenue — comprising nearly 20% of domestic sales — underlining Bajaj’s segment leadership.
Chief Financial Officer Dinesh Thapar said that the company’s electric vehicle portfolio has benefited significantly from cost reductions and Production-Linked Incentive (PLI) schemes, helping Bajaj Auto remain competitive amid a broader market shift towards affordability.
On the supply of rare earth magnets from China, which are crucial components in electric motors, Sharma said, “The rare earth situation is a very difficult one. An onerous process has been hammered together for import approvals. This involves an end-use declaration stating that the rare earths are not intended for military use, and requires certification from multiple Indian ministries, the Chinese embassy, and ultimately, export clearance from Chinese authorities.”
Despite more than 30 applications already submitted by the Indian auto industry, no clearances have been received yet. “Chinese authorities have said it could take 40 to 45 days from the time an application is made, but that loop has not yet closed,” Sharma said.
“As we speak, supplies and stocks are getting depleted. And if there is no relief and no shipments, then July production will be seriously impaired,” he said, adding that this challenge is not unique to Bajaj Auto. “I think such is the case with the entire auto industry.”