NEW DELHI: Facing competition from newcomers such as Ola Electric and Ather, Bajaj Auto is investing Rs 300 crore in expanding its electric vehicle (EV) manufacturing capacity. Bajaj informed that it has commenced work at a brand-new unit at Akurdi, which will have a production capacity of 5,00,000 EVs. The first vehicle from Bajaj’s new unit is expected to roll out by June 2022.
This expansion plan comes when legacy two-wheeler manufacturers, be it Hero MotoCorp, TVS or Bajaj, are increasing their focus on developing EVs, market for which at present is almost entirely dominated by new-age players. Recently, Hero MotoCorp had said that it would be launching its first EV by March 2022 while TVS is investing Rs 1,200 crore in future technologies and EVs in the next four years.
Rajiv Bajaj, MD, Bajaj Auto, said, “Going forward, for the Bajaj portfolio, except for implementing one state-of-the-art ICE platform that is currently under development, all our R&D drive train resources are now laser focused on creating EV solutions for the future.”
He added, “...this investment at Akurdi completes the virtuous cycle of hi-tech R&D competencies, high-efficiency engineering capabilities, world class supply chain synergies, and global distribution network which should leapfrog us into a market leading position in EVs in India and overseas.”
According to data, sales of high-speed electric 2-wheeler have witnessed a near 4x growth in CY2021 as against CY2020. By December 2021, e-2wheelers sales had surpassed the 1,00,000-unit mark for the first time in a calendar year. While Bajaj and TVS have an e-scooter in their portfolio, their market share is much lower than that of the top 3 players.