Bajaj Auto to ramp up capacity of Chetak to 60,000 units per month

Bajaj Auto Ltd, India’s second-largest electric scooter maker by volume, is looking to expand manufacturing capacity of the Chetak e-scooter from 50,000 units to 60,000 units over the next couple of months.

“We are looking to expand capacity of Chetak from about 50,000 units to about 60,000 in the in the immediate term. This will kick in in the next couple of months itself,” Dinesh Thapar, chief financial officer of Bajaj Auto, said in a media conference call after the company announced its first-quarter earnings.

Demand for Chetak continues to outpace capacity, reflecting the growing strength of the brand and product proposition, the company said, adding that investments are underway to augment production to improve availability, support international expansion and unlock the next phase of competitive growth.

The capacity expansion of Chetak comes at a time when electric scooter demand has risen substantially. Industry monthly volumes have climbed from an average of around 120,000 units in FY26 to nearly 175,000 units during the first quarter, touching close to 200,000 units per month by the end of June, said Thapar. Bajaj Auto's Chetak also recorded its highest-ever quarterly volumes, approaching 130,000 units.

Bajaj Auto’s electric scooter business turned EBITDA positive for the quarter ended June 30, 2026, from EBITDA breakeven a couple of quarters ago. “Our electric business, both two-wheelers and three-wheelers, is double-digit EBITDA margin. It's coming on the fact that our electric scooters are now EBITDA positive, and our electric three-wheelers are at double-digit EBITDA margin,” said Thapar.

The capacity expansion programme extends beyond electric vehicles. Overall, Bajaj Auto plans to increase manufacturing capacity across its businesses by roughly 20% through a two-phase expansion programme. The first phase will add approximately 10% capacity over the next three to four months, followed by another 10% by the end of the financial year or early in the following fiscal year. The expansion spans motorcycle plants, commercial vehicle facilities at Waluj and Chetak production at Akurdi.

The company's current installed manufacturing capacity stands at roughly 600,000 units per month across businesses.

On the recently launched Delhi EV policy that bans registration of ICE two-wheelers and three-wheelers from April 2028 and January 2027, respectively, Thapar said it leaves the customer with very little choice.

"We should leave some of these choices to the customer, and let the customer decide,” Thapar said adding that narrowing it down only to electric vehicles leaves the customer with very little choice.

Bajaj Auto sells about 2,000 ICE vehicles in Delhi each month.

On the company’s upcoming electric motorcycles, Thapar said that the electric motorcycle plans are under development and some launches may happen in FY28.

He, however, added that the company’s priority in electric motorcycles will be export markets. “Our priority on the electric motorcycle will likely be the export markets first, and then the domestic market,” he said.