Having over 18 % share of the electric two-wheeler market with over 84,225 units in sales till August 2024, Bajaj Auto targets to sell over 10,000 green vehicles before Diwali.
One of the prominent players in the Indian two-wheeler market Bajaj Auto is slowly penetrating the the clean energy vehicles segment. The company has laid out a very aggressive strategy to increase its production and sales of CNG, ethanol, and electric vehicles targeting monthly sales of 10,000 units.
“We stand on the cusp of monthly sales and production of 10,000 clean energy vehicles by this festive season.” — Rajiv Bajaj, CEO, Bajaj Auto
Let’s have at look at the current market trends of Bajaj Auto and its potential to achieve the targeted growth:
Sales Performance
Bajaj Auto has been demonstrating impressive sales figures in the current fiscal year. In June 2024, the company reported a global 5% increase in total sales compared to the previous year’s figures, reaching 358,477 units.
Domestic Bajaj Auto sales grew even more significantly, rising by 8% year-on-year (YoY) to 216,451 vehicles, while exports saw a slight 1% rise to 142,026 units. These sales figures reflect the brand’s strong stand in the two-wheeler market.
Launch of CNG and Ethanol-Powered Vehicles
As environmental consciousness grows, consumers are increasingly opting for eco-friendly mobility solutions. To cater to the growing demand, Bajaj Auto is set to expand its green vehicles lineup with the introduction of CNG and ethanol-powered two-wheelers and three-wheelers. The company expects to launch these new models by the end of August 2024.
Bajaj recently introduced the Freedom 125 CNG bike. It is the world’s first CNG-powered motorcycle. It offers a range of up to 330 km, thanks to its 2-kg CNG tank and 2-litre petrol tank. It is poised to drive initial sales from the Indian market. The company aims to deliver between 8,000 and 9,000 units of this model in August and has set a target of producing 40,000 units per month by January 2025.
Also Read: New Bajaj Chetak EV 2903 Variant Launch Confirmed
New Bajaj Chetak EV Variants
To meet the ambitious goal of 10,000 green vehicles a month, the company announced the launch of a new upgraded Urbane variant of the Chetak EV model with fast charging capability. The company plans to cater to both the affordable and premium segments. Bajaj Auto is also working on a new Chetak EV platform, which is set for launch early next year.
Current Market Share
At present, Bajaj Auto accounts for an 18 % share of the market in the electric two-wheeler segment. Chetak’s e-scooter is its direct rival to the iQube that is brought into the market by TVS. Meanwhile, Bajaj leads the three-wheeler segment with a dominant 36% market share.
For further measures, Rajiv Bajaj, Managing Director of Bajaj Auto, has also advocated for a reduction in the Goods and Services Tax (GST) on CNG motorcycles. He argues that if electric vehicles are taxed at a lower rate of 5%, there is no justification for the current 28% GST on CNG vehicles. It makes sense too.
Brand’s Trust
The company has the potential to reach its projected goal because of its rich legacy of brand trust and reliability. Their strategy of focusing on motorcycles, innovation, and differentiation paid off. Today, Bajaj is trusted not only in India but also globally. Their motorcycles, known for technology, design, and performance, continue to inspire confidence in customers.
Bajaj Auto’s commitment to sustainable transportation and its strong sales performance positions it as a leading player in the Indian two-wheeler market. Bajaj Auto’s strategic vision, product lineup, and responsiveness to market dynamics, reflect its potential for achieving its ambitious sales target of 10,000 green vehicle sales by this Diwali. As the company continues to innovate and expand its manufacturing plants, consumers can expect to see a wider range of cleaner and more efficient mobility solutions.