How Are TVS Planning to Counter Bajaj Auto’s Ambitious Expansion Plans?

Bajaj Auto Limited is an Indian multinational automotive manufacturing company, It is the world’s third-largest manufacturer of motorcycles and the second-largest in India. It is the largest three-wheeler manufacturer in the world, The company is set to expand its electrical vehicle business ahead. Here it will face tough competition with the third-largest motorcycle company in India by revenue, The Indian multinational motorcycle manufacturer based in Chennai, TVS Motors.

Bajaj Auto’s Future Plans

Bajaj Auto is ambitious about expanding its electric vehicle portfolio, where they are going to target both electric three-wheelers and two-wheelers. Bajaj Auto launched electric three-wheelers last year and they’ve already extended their electric three-wheeler operations to 23 cities and are aiming to reach 70-80 cities shortly. To support this growth, they’re going to inaugurate a new manufacturing facility, spending Rs.400 crore for this endeavor.

Bajaj Auto aims to increase production of their Chetak electric scooters, following impressive initial sales figures of Rs.1,400 in the debut year. The electric version of this iconic scooter saw domestic sales rise to Rs.8,187 in FY22 and further to Rs.36,260 in FY23, as per their annual report. With ambitions to ramp up production,

How Will TVS Motors Counter Against This?

The third largest motorcycle company in India, TVS Motors which currently has two e-scooters in its portfolio, also plans to expand its electric vehicle sales infrastructure going ahead. its electric two-wheeler lineup within the next year, aiming to cater to diverse customer segments with various price points. The Chennai-based company also intends to increase its electric vehicle sales infrastructure and they are planning to develop an electric three-wheeler. 

On their plans, TVS Motor Company’s Director and CEO, K N Radhakrishnan, emphasised that they would be launching a series of products ranging from 5 to 25 kilowatts over the coming year. With strong market demand, the company has already increased the production capacity of its electric scooter, iQube, to 25,000 units per month.

Conclusion

Bajaj Auto with its ambitious expansion plans for the future will be heading to expand its electric vehicle portfolio in both two-wheeler and three-wheeler segments, On counter of this TVS Motor which already had iQube as the two-wheeler electric vehicle rival of Bajaj Auto’s Chetak are also going to develop a three-wheeler electric vehicle ahead, Both the companies expansion plans in the EV segment will depend heavily on the FAME policy.

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.