New Delhi: Bajaj Auto is pulling out all stops to develop its electrical two wheeler (e2w) portfolio in a bid to achieve market management. The e2w market has seen sharp adjustments within the pecking order over the previous few months, with Bajaj’s Chetak briefly reaching the quantity two spot in September, forward of TVS Motor Firm’s iQube. Ola Electrical has remained the market chief by far, all through. However TVS sprang again in October to say the second spot once more at the same time as Bajaj continued to snap at its heels. Now, Bajaj is bringing an “upgraded, refreshed” vary of Chetak to speed up its e2w play.“The momentum of market share acquisition ought to enhance additional with a wholly new refreshed vary and upgraded vary being launched starting center of November. These upgraded Chetaks is not going to solely have superior and aggressive propositions, however they will even considerably enhance our margin construction,” Bajaj’s Government Director Rakesh Sharma instructed analysts just lately.
Two individuals near developments stated that the brand new vary of Chetak scooters is anticipated throughout retail showrooms however barely later, by round January subsequent yr. “The brand new scooters are below growth however retailers haven’t been instructed something particularly. No coaching has began as of now…there may be some discuss of the brand new Chetak fashions being larger than the prevailing vary, with larger battery and motor, in order that the model can compete with the Ather Rizta. They might include new worth tags too,” stated one of many individuals.
The Rizta has been positioned as a household scooter and was obtainable initially at a beginning worth of INR 109,999 (ex-showroom Bengaluru). The positioning and the pricing meant that the Rizta grew to become one of the crucial inexpensive fashions within the e2w market at launch and thereafter rivals, together with Bajaj Auto, introduced in sub-one lakh rupee fashions too subsequently. However the particular person quoted above stated that Bajaj merely tweaked the pricing on the prevailing Chetak (whereas decreasing battery dimension and so on) to launch a sub one lakh rupee mannequin in response to Rizta earlier this yr. “The brand new vary of Chetak would be the first time when Bajaj will provide a model new product, with most likely bigger seats, larger battery and so on,” this particular person stated. However when contacted, Sharma didn’t verify whether or not the brand new Chetak vary could have larger seats, larger battery and so on. “Certainly we’re going to start the introduction of the brand new platform mid-end November and there on. It will be finest to attend for that occasion as we may be particular solely then,” Sharma instructed ETAuto. At current, the Chetak comes at three worth factors: INR 1.35 lakh, INR 1.15 lakh and the inexpensive variant whose worth vary is INR 96000-100,000.
In the meantime, not simply new merchandise, Bajaj can be increasing the distribution attain of Chetak, with Sharma promising availability of the electrical scooter in 1000 further retailers by January subsequent yr. This can take the overall retail footprint of Chetak to 4000 retailers – these are current Bajaj motorbike showrooms the place Chetak can be retailed. As well as, there might be a rise within the variety of unique Chetak retailers from the present 250 .
Now not draining margins:Bajaj’s give attention to increasing the product lineup and distribution of electrical scooters comes simply as the corporate’s electrical automobile portfolio (in entirety) has stopped being a drag on its total margins from the second quarter (July-September) of 2024-25. The worthwhile gross sales of electrical three wheelers are at the moment the explanation for the general electrical portfolio ceasing to be a drag on margins.
Bajaj’s EBITDA for Q2 “has been flat in absolute phrases. Clearly, benefiting from the size up of the very worthwhile electrical three-wheeler portfolio and price discount, which we have spoken about over a time period on Chetak, primarily electrical two-wheelers. This portfolio has now bought a milestone one lakh models on this quarter for the very first time, which is sort of vital within the journey that we have been making steadfastly in the direction of electrification,” Rakesh Sharma instructed analysts.
The size up on three wheelers has been offsetting the drag which Chetak brings on the EBITDA margins. In impact, Bajaj Auto’s money burn on the electrical portfolio is now flat. Maybe with the brand new product lineup of Chetak, enlargement of the distribution community and new pricing, the electrical two wheeler share within the total margins would additionally finally flip optimistic. The e2w gross sales touched the 70,000 unit mark in Q2 towards simply 40,000 models in Q1 of FY25.
Freedom 125: Whereas the e2w portfolio is witnessing deep focus from Bajaj, the corporate can be upbeat in regards to the CNG bike, Freedom 125. Until September, the corporate says it has retailed 10,000 of those bikes and the goal for October alone was 18000 models. Two sellers, nonetheless, spoke of the entry stage variants of the Freedom 125 – known as ‘Drum with LED’ and ‘Drum’ – having seen a worth discount throughout the pageant season of INR 5000 every.
Each sellers stated that these variants have seen a sluggish offtake and that was the explanation for the corporate to slash the worth, denying that the INR 5000 discount was a festive low cost. However Sharma of Bajaj Auto stated that with the rise in total gross sales of Freedom 125, the corporate has ramped up manufacturing, to 30,000 models per 30 days within the present quarter and 40,000 per 30 days from the fourth quarter (January-March 2025). Bajaj has marketed this bike on the financial savings plank, claiming 50% financial savings in gasoline payments versus petrol bikes.
To a query on the time taken by clients to refill CNG throughout varied cities, Sharma stated “the ready interval (for getting the gasoline) might be in minutes and seconds”. Some sellers have stated that ubiquitous queues for getting CNG throughout pumps in large cities have been a deterrent for some potential clients of Freedom 125.
