Bajaj Auto Amps Up Its Electric Two-wheeler Initiative

Bajaj Auto, which started its journey in the EV space with the Bajaj Chetak, has now taken the next step: setting up a wholly owned subsidiary for its green vehicle business. This was recently approved by the board of directors. The brand’s regulatory filing states, “The wholly owned subsidiary will leverage the growth opportunities in the evolving mobility space and help the company venture into the manufacturing of electric and hybrid vehicles in the two-, three- and light four-wheeler categories.”

Bajaj intends to invest a total of Rs 100 crore for the new entity. So what does all this mean? Here’s what we think:

The Battle To Go Green

The electric two-wheeler segment has witnessed a massive push thanks to the rising fuel prices as well as recent government initiatives such as the reworked FAME II subsidy. In parallel, several mainstream manufacturers have also been jumping onto the electric bandwagon. 

Hero MotoCorp has grand plans of becoming the next major EV player with its Rs 10,000 crore budget allocation for the next 5-7 years, in conjunction with Taiwanese company Gogoro. Moreover, the company has also already unveiled the eMaestro, an electric scooter based on the popular petrol-powered Hero Maestro range.

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Like Bajaj, TVS has also invested Rs 1,000 crore for a new subsidy through which it will be developing and selling as many as six upcoming electric vehicles. The company already offers the TVS iQube Electric, which goes up against the Bajaj Chetak. Even Honda and Suzuki were recently seen testing their electric scooters, the Benly-e and the Burgman Electric, respectively. So, with the new subsidiary, it looks like Bajaj is preparing itself ahead of the competition from all these manufacturers. 

While most mainstream brands are taking baby steps towards electrification, Ola Electric seems to be a bit ahead of the curve. The first phase of its massive factory is almost complete and more importantly, the company is likely to launch its electric scooter next month. To reinforce its grand entry, it intends to set up sprawling charging infrastructure across the country to mitigate range anxiety. It will be interesting to see how Bajaj fares in this battle to go green.

Winning Hearts With An Electric Pulsar, Perhaps?

Bajaj Auto has not really been all that popular in the commuter segment. Its brand identity has been forged by the Bajaj Pulsar range, which is all about sportiness and performance, albeit wrapped in an accessible package. While the brand already has the Chetak in the electric scooter segment, the Pune-based bikemaker might just find its own niche in the electric motorcycle segment by offering an e-bike, presumably called the Bajaj Pulsar Electric. The Pulsar’s legendary brand recall will also help prospective customers switch to electric faster. 

Stefan Pierer, CEO of Pierer Mobility that owns both the KTM and Husqvarna brands has already revealed earlier that it is working with Bajaj for electrification, with motors ranging from 4kW to 8 and 10kW. Husqvarna already unveiled the E-Pilen concept back in April 2021. The concept motorcycle offers a claimed range of 100km, powered by an 8kW electric motor. Expect a similar range, albeit with a less powerful motor in the upcoming Bajaj Pulsar Electric. This should ensure the bike is accessible to the masses.

All in all, Bajaj Auto seems to be heading in the right direction with its recent initiatives. But unlike the Chetak, we hope Bajaj enters the electric motorcycle segment better prepared, with a wider dealer presence. Let us know what you think in the comments below.

Images used are for representation.