Bajaj Auto Ltd is set to make August a defining month in its electric mobility journey, with Managing Director Rajiv Bajaj announcing a delivery target of over 15,000 Chetak electric scooters and 7,000 electric three-wheelers. The announcement, made during an interview with CNBC-TV18, comes as the company resumes full-scale production following the resolution of rare earth magnet supply constraints. Bajaj also used the platform to appeal to the government for uniform GST treatment across all two-wheelers, advocating for a simplified tax structure that supports affordability and sector-wide growth.
Production Recovery And Delivery Targets
- Bajaj Auto recommenced production of its flagship Chetak e-scooter on August 20, following weeks of disruption caused by rare earth magnet shortages
- The company aims to deliver over 15,000 Chetak units and 7,000 electric three-wheelers during August, reflecting a sharp rebound from July’s subdued volumes
- These targets position Bajaj Auto to capitalize on festive season demand and reinforce its leadership in the electric two- and three-wheeler segments
Rare Earth Magnet Supply Stabilization
- Rajiv Bajaj confirmed that the company began receiving clearance for light rare-earth magnet supplies three weeks ago, enabling a timely production restart
- The magnets, essential for high-performance EV motors, had been in short supply due to global export curbs and logistical bottlenecks
- China’s easing of export restrictions played a key role in restoring supply lines, and Bajaj Auto is now exploring alternative sourcing strategies to reduce future dependency
Market Performance And Brand Momentum
- Despite the temporary production dip, demand for Chetak remained strong, with bookings holding steady across urban centers
- Bajaj Auto ended FY25 as India’s top-selling electric scooter brand, with its market share doubling since April last year
- The company’s Urbanite Business Unit, which oversees Chetak and other EV initiatives, is scaling up operations to meet rising demand
Policy Advocacy And GST Reform Appeal
- Rajiv Bajaj urged the government to ensure that all two-wheelers, regardless of fuel type, are taxed under the Goods and Services Tax regime
- He emphasized that a uniform GST rate would simplify compliance, reduce consumer confusion, and promote broader adoption of electric mobility
- The appeal comes amid ongoing discussions around differential tax treatment for ICE and EV vehicles, which some manufacturers believe creates market distortion
Financial Performance And Operational Strength
- Bajaj Auto reported a 5.4 percent increase in net profit for the June quarter, reaching 2,096 crore rupees
- Revenue rose 5.5 percent year-on-year to 12,584 crore rupees, supported by stable volumes and improved export performance
- EBITDA stood at 2,481 crore rupees, with margins narrowing slightly to 19.7 percent due to input cost pressures and pricing adjustments
Strategic Focus And Future Plans
- The company continues to invest in expanding its EV portfolio, including new variants of the Chetak platform and cargo-focused three-wheelers
- Bajaj Auto is working on increasing localization of components and forming partnerships for battery technology and charging infrastructure
- The company aims to maintain its leadership in electric mobility while shaping policy frameworks that support long-term industry growth
Conclusion
Bajaj Auto’s aggressive delivery targets for August and its renewed policy advocacy reflect a company fully committed to leading India’s electric mobility transition. With production normalized and rare earth magnet supply stabilizing, the Chetak brand is poised to consolidate its market position. Rajiv Bajaj’s call for GST reform adds a strategic layer to the company’s growth narrative, signaling its intent to influence not just product innovation but also the regulatory environment. As the festive season approaches, Bajaj Auto is clearly accelerating on all fronts.
Sources: CNBC-TV18, Economic Times Auto, Motoring Trends, Financial Express.
