Bajaj’s EV subsidiary will aim at improved efficiencies and better competencies against rivals
At a time when EV space is undergoing rapid transformation, OEMs need to think and act proactively to stay ahead in the game. With that in mind, Bajaj Auto has decided to setup a separate wholly owned subsidiary for its EV business. The new entity will have access to dedicated resources and freedom to take decisions in line with evolving market dynamics. Assigning responsibilities will also become easier with the new subsidiary.
In its communication submitted to Bombay Stock Exchange, Bajaj has stated that the board has provided its approval for setting up of a wholly owned subsidiary. The subsidiary will focus on harnessing opportunities in the mobility space. It will also define the roadmap that will be used to achieve desired goals and objectives. The subsidiary will manufacture a new range of electric scooters, electric motorcycles and hybrid vehicles that will include two, three and four-wheelers.
The name of the subsidiary has not been announced yet. Bajaj is working on some names and a final decision is expected soon. The name will be announced once it gets approval from the Ministry of Corporate Affairs. The subsidiary will be setup with a proposed authorized capital of Rs 100 crore.
Chetak expansion plans
As of now, Bajaj has only Chetak in its EV portfolio. With significant interest from customers, Bajaj has plans to rapidly expand operations to more cities in the coming months. By 2021, it is targeted that Chetak will be available in 22 new cities. By end of this fiscal, the number would have increased to 40 cities.
At the time of its launch, Chetak was available in Pune and Bengaluru. The company recently added four more cities – Nagpur, Aurangabad, Mysore and Mangalore.
Bajaj’s EV strategy indicates that the company is factoring in the threats as well as opportunities that exist in this space. As far as Chetak is concerned, its primary rivals include TVS iQube and Ather 450X. Both have been continuously expanding operations to newer cities across India.
In the electric two-wheeler space, the biggest move till date is from Ola electric scooter. This is expected to be launched soon. Ola electric has turned out to be a huge hit with bookings of 1 lakh on first day itself. This is a new record in the country’s automotive history.
Ola Electric’s mega plant in Tamil Nadu is currently under development. When fully complete, it will be capable of producing 10 million units per annum. The company will be targeting global markets as well to optimally utilize its production capacity.