Bajaj Auto said that it will form a wholly new subsidiary for its electric vehicle business. It said that the new entity will help the company venture into production of two-, three- and light four-wheelers in the electric and hybrid segment. The decision was taken during a board meeting on Thursday.
“The wholly owned subsidiary will leverage the growth opportunities in the evolving mobility space and will help the Company venture into the manufacturing of Electric and Hybrid vehicles in the 2 wheeler, 3 wheeler and light 4 wheeler categories,” said the auto giant in a regulatory filing.
Bajaj Auto said that the name is being finalised and is subject to approval from the Ministry of Corporate Affairs.
The entity will have a proposed authorised capital of Rs 100 crore.
Bajaj Auto already sells Chetak scooter. It has announced the launch of the electric three-wheelers and quadricycles in 2021-22. Its premium bike brand KTM is also working on a range of electric motorcycles.
The company’s biggest rival Hero MotoCorp is also planning to launch its EV business next year. TVS Motor Company has also announced that it will invest in a new EV plant in Hosur. Its first EV offering iQube is currently being sold in Bengaluru, Chennai, Coimbatore, Delhi and Pune.
Meanwhile, Ola Electric has also started pre-bookings for its EV scooter, available in around 10 colours, likely to be priced between Rs 80,000-1,10,000.
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