Bajaj Auto has announced an ambitious plan to ramp up the monthly output of its Chetak electric scooter to approximately 80,000 units by the final quarter of FY2027, which spans January to March 2027. Currently, production stands at just over 62,000 units per month.
The announcement was made by Rakesh Sharma, the Joint Managing Director of Bajaj Auto, following the company’s Q2 FY2027 financial results. He highlighted that the demand for the Chetak continues to surpass the current production levels, prompting the company to explore potential locations for establishing a sixth manufacturing facility.
Production Capacity and Challenges
Previously, Bajaj faced significant supply chain disruptions that limited Chetak production to about 40,000 units monthly, even though the available capacity was 60,000 units. However, the production has now returned to full capacity, but demand still remains robust.
Sharma indicated that Bajaj is optimistic about overcoming further production bottlenecks in the January to March 2027 timeframe, which will facilitate an increase in monthly output to nearly 80,000 units. This situation is not isolated to the Chetak, as the company is also experiencing constraints in its premium motorcycle and internal combustion engine segments.
Future Expansion Plans
As a response to these production challenges, Bajaj Auto is actively evaluating options for its new plant and is in discussions with various state governments regarding potential locations. A dedicated cross-functional team is assessing various proposals across India, although details regarding the investment, production capacity, and specific timeline for the new facility have not yet been revealed.
The Joint Managing Director also noted that electric vehicles currently account for about 25% of scooter sales in India, a figure that is projected to rise to 50% within the next three to five years. He further elaborated on the varying levels of electric vehicle penetration across different states, mentioning that penetration is around 40% in Odisha and 30-35% in Maharashtra, while Gujarat lags behind at only 10-12%.
Product Range and Customer Focus
In addition to increasing production, Bajaj Auto plans to broaden the Chetak range over the next six months to better meet customer demands. However, Sharma did not disclose specific details regarding the new models or variants that may be introduced.
Source: Autocar India
