Chetak Rebounds to No.1; Bajaj Auto Readies New Model to Cement EV Lead

With the rare-earth supply crisis now behind it, Bajaj Auto has secured alternative global sourcing routes to stabilise production of its electric scooter brand, Chetak, which regained the No.1 position in VAHAN registrations in October. The company is now preparing to launch an all-new Chetak model early next year to sustain its leadership momentum in India's competitive EV market.

Speaking at the company's Q2 FY26 analyst earnings call, Rakesh Sharma, Executive Director of Bajaj Auto, said the new Chetak will build on the brand's regained strength and expanding retail presence.

"The upcoming model will build on the momentum we've regained. With 390 exclusive stores and over 4,000 retail points across 800 cities, our network gives us a clear edge," Sharma told analysts.

He explained that the brand's supply bottlenecks earlier this year were triggered by a shortage of heavy rare-earth (HRE) magnets, which disrupted output of the high-selling Chetak 35 series.

"We suffered the most, given the high growth trajectory of Chetak after the launch of the 35 series. Supply was following demand, and the rare-earth constraints led to an almost 50 percent shortfall versus our plan," Sharma said.

According to him, Bajaj Auto acted quickly to diversify sourcing and restore component flow.

"We've shifted to more secure light rare-earth components and diversified supply across alternate geographies. Supplies were fully restored by October, well ahead of what we had anticipated," he noted.

The quick turnaround helped Chetak reclaim leadership within weeks of supply normalisation.

"It's heartening to see Chetak back at No.1 in VAHAN registrations in October. We intend to sustain that leadership in the future," Sharma added.

Chetak's revival also reinforces Bajaj Auto's growing electric mobility business, which now spans Chetak, electric three-wheelers, and the Yulu partnership. The EV portfolio contributes close to 20 percent of domestic revenue and already delivers double-digit EBITDA margins, underscoring the company's scale and cost efficiency.

"With the supply chain stable and a new model on the horizon, we're confident of maintaining leadership in the electric two-wheeler space," Sharma said.