New Delhi: A brand new Chetak retailer each two-and-a-half days, correcting the value to convey it on par with rivals who’ve unleashed large reductions, and launching a brand new variant with improved efficiency. Bajaj Auto has been pulling out all of the stops in its quest for higher market share for its iconic electrical scooter. And the plan appears to be working. The Bajaj Chetak had notched up bookings of over 11,000 models between January one and 24, giving wings to the corporate’s goal of promoting 15000 models a month quickly.Bajaj is considered one of two exceptional success tales within the e2W house (the opposite is TVS Motor Firm). It has managed to double market share inside 12 months to 10% in December and now, the corporate is aiming for additional consolidation.
Knowledge from the Society of Producers of Electrical Autos (SMEV) exhibits that in 2022-2023, Bajaj had 5% market share, TVS was at 11% and Ola at 21%. However within the 9 months until December 2023, Bajaj climbed to 10%, TVS to twenty% whereas Ola was at 33%. In different phrases, by the top of 2023, Bajaj and TVS collectively accounted for each third e2W bought within the nation, whereas Ola accounted for one more third.
It’s apparent that the market share positive aspects made by Bajaj and TVS are on the again of shrinking shares of pure-play e2W OEMs. Ampere, Okinawa and Hero Electrical have been at 12%, 13% and 12% share of the market in 2022-2023. In different phrases, these three corporations have been accounting for greater than a 3rd of all the e2W market final fiscal. However by December 2023, their shares had dwindled to
7%, 3% and a pair of% respectively or collectively, they accounted for just a bit over tenth of the market.
How Bajaj nailed it
In a name with analysts after the Q3 FY24 outcomes, Government Director Rakesh Sharma stated that Chetak has been posting good gross sales numbers regardless of quite a lot of discounting by rivals throughout the previous couple of months because of a number of elements. A widening distribution footprint, guaranteeing provide certainty after the corporate managed to sort out the sooner provide chain points, and “the precise value to the product” led to the efficiency. “The gross sales community is now virtually 160 cities so wider geography is offered to play with. Chetak has turn into aggressive as a result of it’s now at virtually equal pricing with rivals and getting good traction.”
After all, the brand new variant (Urbane) which was launched earlier this month can be including to the gross sales momentum, Sharma stated.
“Prospects have been liking the traditional design, the ergonomics and a few options like tail lamp design and so forth of the sooner variant however there was a problem across the console and sure connectivity options. The brand new Chetak elevates efficiency when it comes to prime velocity, elegant TFT show and connectivity options. The suggestions within the final 2-3 weeks for the brand new variant is that it’s properly appreciated. So now we have now two variations, urbane and premium. By Q1 of subsequent yr, another product providing can be launched, which can additional increase gross sales and market share,” Sharma stated.
Sharma has earlier indicated that Bajaj Chetak could ultimately even be headed for exports. Exports are the lifeline of Bajaj Auto, with half the topline and greater than half of the corporate’s bottomline coming from exports. Bajaj Auto sells its two and three-wheelers in 96 international locations. Latin America, Africa, Asia and the Center East are a number of the main markets for India’s largest two wheeler exporter. So exploring the export potential for Chetak electrical is pure. Works are underneath option to develop an electrical motorbike. Bajaj Auto is working with KTM for top finish merchandise.
Coverage flip flops
Bajaj and TVS have made inroads into the e2W market in a yr which noticed coverage uncertainty with alleged subsidy misappropriation, subsequent discount and withdrawal of subsidies for some OEMs.
The federal government was providing buy subsidies underneath the FAME II scheme until allegations of misappropriation surfaced. OEMs which have been denied subsidy subsequently and a few, which have been requested to pay again subsidies retrospectively, ultimately suffered extreme working capital shortages. This was one of many largest causes for the shakeup out there share pecking order. Later within the yr, coverage uncertainty and dwindling gross sales led market leaders to supply large reductions too. Apart from Ola and Ather, virtually all different pure-play e2W OEMs have seen vital fall in gross sales throughout FY24.