Bajaj Auto EV Expansion Remains Strong Despite US Tariff Hike

Bajaj Auto is showing strong confidence in its electric vehicle (EV) expansion strategy despite the recent tariff hike on EVs by the US government. Managing Director Rajiv Bajaj confirmed that minimal exposure to the US market and improved magnet supplies are fuelling an EV production ramp-up. This was shared in an interview with CNBC-TV18 by Rajiv Bajaj, MD of Bajaj Auto. 

Minimal US Exposure Shields Bajaj from Tariff Impact

Rajiv Bajaj stated that the company's export volume to the US is insignificant, with only about 10,000 KTM and 5,000 Triumph vehicles exported annually. This accounts for under 0.5% of the company’s total production of 50,00,000 units. With such minor exposure, Bajaj Auto remains unconcerned about the fresh tariff increase. This limited risk exposure provides the company with the agility to focus on high-growth markets with fewer geopolitical trade barriers.

EV Production Gains Momentum with Improved Magnet Supply

One of the greater challenges Bajaj Auto recently faced was a shortage of rare earth magnets, critical for EV motor production. The company feared a total production stoppage in August. However, this scenario was averted, as the supply has now improved. Bajaj noted that the Chetak EV is now operating at 50% production levels, and the GoGo model at 70%, with expectations of record production numbers in September.

Read More: Bajaj Markets Expands into Grocery and Food Delivery Services with ONDC!

Strategic Diversification in Export Markets

Though the US is not a key market, Bajaj Auto is diversifying exports via Europe, Thailand and Latin American networks. The seasonal slowdown in US-bound shipments during winter is also allowing the company to re-evaluate supply chains. Exports have already bounced back to 1,80,000 units per month, approaching the pre-COVID peak of 2,00,000. Latin America is driving this rebound, especially for Pulsar and Dominar motorcycles, even as Nigeria and Egypt pose local challenges.

Exploring Alternative Magnet Sources

Currently dependent on China for low rare earth (LRE) magnets, Bajaj Auto is actively exploring alternate sources and long-term solutions, such as ferrite-based magnets. These efforts aim to de-risk future production and maintain stability in EV manufacturing, which is crucial for sustaining growth in this segment.

Bajaj Auto Share Price Performance

On August 7, 2025, Bajaj Auto share price opened at ₹8,070.00 on NSE, below the previous close of ₹8,178.50. During the day, it surged to ₹8,231.00 and dipped to ₹7,858.50. The stock is trading at ₹8,204.00 as of 2:31 PM. The stock registered a marginal change of 0.31%.

Over the past week, it has moved up by 1.98%, over the past month, it has declined by 0.98%, and over the past 3 months, it has moved up by 7.17%.

Conclusion

Bajaj Auto remains unfazed by external shocks such as US tariffs, owing to minimal exposure and a flexible global strategy. With magnet supply issues easing and EV production scaling up, the company is well-positioned for growth in both domestic and export markets, focusing on sustainability and supply chain resilience.

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