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Bajaj Auto’s Expansion Plans As They Enter New Markets With New Products

19 April 20244 mins read by Angel One
Bajaj Auto has plans to boost its EV sector by setting up a new manufacturing unit, venturing into CNG, and further global expansion.
Bajaj Auto’s Expansion Plans As They Enter New Markets With New Products
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Bajaj Auto, a subsidiary of the Bajaj Group is a leading manufacturer in the two-wheeler and three-wheeler sector with a market cap of around INR 1 trillion that has a significant domestic and global outreach, it exports to 79 countries across the world. In India, Eicher Motors, TVS Motors and Hero Motocorp are considered as the competitors of Bajaj Auto. Last year, Chetak Technology Ltd, a wholly-owned subsidiary of Bajaj Auto inaugurated a new EV manufacturing plant in Pune and keeping the rising EV demand in India, this plant is structured to be able to produce 500,000 electric two-wheelers per annum if required.

Expansion Plans

Bajaj Auto has heavy investment plans for the expansion in the EV sector, with the growing per capita income and recovery from COVID-19 in the country, people are looking at comfort because the two-wheeler EV demand in India has risen over the past few years.  The company has majorly focused on one product called “Chetak” which is an electric scooter. The company also has plans to invest about Rs.800 Cr in capital expenditure in FY 24-25. 

Entry into CNG

Rajiv Bajaj, MD, Bajaj Auto recently mentioned that the company is diving into the opportunity of clean fuel CNG motorcycles and we can expect the launch by June of this year. The bikes are expected to be comparatively on the higher side than the petrol ones but it is going to target the mileage-conscious consumers. For the manufacturing plants, they are planning on launching the plants in a phased manner and because of their prior experience and expertise in the three-wheeler CNG space, they are mapping out further expansion plans strategically.

International Expansion

Additionally, after the formal recognition of quadricycles as public transport by the Egyptian Government, Bajaj Auto has announced its international expansion by talking about its plans to export its innovative “Qute” vehicle in the Egyptian markets. The affordability, fuel efficiency and spacious interior are some features which make the Egyptian market a desired market. Bajaj Auto is also considering increasing the monthly production of the Triumph motorcycle because of its increasing domestic and global demand. They started exports of the Triumph motorcycles last year to the markets of the US, UK, Japan, Poland and Australia and have sold more than 7000 units.

Conclusion: Overall, Bajaj Auto’s expansion into various sectors like EV, and CNG and its international expansion into a new market reflects its consistent approach to embracing emerging trends in the market. By investing in electric mobility and effectively contributing to the industry, the company has positioned itself for long-term success in the rapidly evolving automotive industry. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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