Bajaj Auto targets 80,000 monthly units for Chetak EV production by March

Bajaj Auto is working to increase the monthly production capacity of its Chetak electric scooter to approximately 80,000 units by the end of March, according to Joint Managing Director Rakesh Sharma. The capacity expansion comes as demand for the vehicle continues to outpace the company's current manufacturing output.

Speaking to reporters following the announcement of the July-September quarter results, Sharma stated that the automaker has restored production to its full existing capacity following recent supply chain disruptions that had impacted output. While current production capacity stands at around 60,000 units, the company manufactured only 40,000 units during the period due to supply chain constraints, resulting in a production loss of 20,000 units despite strong market demand.

To bridge the gap between demand and output, the company plans to de-bottleneck its operations by the fourth quarter, covering January to March. The target of 80,000 monthly units is expected to align closely with current market requirements.

During the July-September quarter, Bajaj Auto reported that Chetak volumes more than doubled, with segment revenue crossing ₹2,000 crore. Furthermore, the electric vehicle segment has transitioned from operating at a loss to achieving double-digit profitability, making the product line margin accretive for the company.

In addition to ramping up current manufacturing lines, Bajaj Auto is evaluating multiple locations for a sixth manufacturing plant to support both electric vehicles and internal combustion engine (ICE) vehicles. Discussions are underway with several state governments to assess potential sites. Sharma noted that existing capacity is facing constraints not only for the Chetak line but also for premium products and high-end motorcycles.

Looking ahead in the medium term, the automaker has outlined plans to increase its total annual manufacturing capacity by more than 25 percent, moving from approximately 7 million units to over 9 million units to cater to rising demand across electric vehicles, premium motorcycles, and exports.

"Bajaj Auto's transition of its electric vehicle segment to double-digit profitability marks a significant milestone for the domestic EV industry. It demonstrates that scale and localized manufacturing can successfully resolve margin pressures in green mobility. As legacy manufacturers continue to de-bottleneck supply chains and expand capacity to match surging consumer demand, profitability alongside volume growth will remain the key metric for sustainable success in the automotive sector." — Dr. Shishir Gupta, Founder & CEO, StartupLanes