Bajaj to establish wholly-owned subsidiary for EV and hybrid vehicles

Bajaj Auto to establish a wholly-owned subsidiary to capitalise on growth opportunities in the electric and hybrid two-wheeler, three-wheeler, and light four-wheeler segments. The proposed authorised capital for the subsidiary company is Rs 100 crore, and the paid-up capital is Rs 5 crore. The name of the new subsidiary has yet to be finalised and is subject to approval by the Ministry of Corporate Affairs. Rakesh Sharma, executive director of Bajaj Auto, explained at the annual general meeting (AMG) that the company is evaluating the full spectrum of possibilities in micro-mobility to performance motorcycles on the electric platform. The board of directors has approved the creation of a wholly-owned subsidiary dedicated solely to the development of the electric vehicle (EV) business. Bajaj entered the EV space with the Chetak, a fully electric scooter that debuted in January 2020 in Pune and Bengaluru. The Pune-based firm has since expanded its sales to Nagpur. Sharma added that sales have begun in Pune and Bengaluru, but demand is outstripping supply. The Chetak is expected to have a monthly strike rate of 1,000 units. Within the next quarter, the company plans to expand to four more cities, with a total of 25 by the end of the year. Bajaj Auto also mentioned that it has built a 60,000-unit-per-year manufacturing capacity for the Chetak. While the Chetak is the most expensive electric scooter in India, its capacity pales in comparison to its competitors. Ola Electric is constructing a factory in Tamil Nadu with a full production capacity of 10 million units. Ather Energy can now produce over 100,000 units per year, while Ampere Vehicles is preparing to produce one million. Image Source Also read: Construction of Ola’s electric scooter factory in Tamil Nadu in full swing