Bajaj Auto plans 20% capacity increase as Chetak EV demand outpaces supply
Bajaj Auto will expand capacity at Waluj and Akurdi by up to 20% by FY27-end, with the first 10% addition due in three to four months. The company is also set to launch 10 models within six weeks, including two 125–150cc Pulsars, after Q1 sales rose 29% year on year.
What happened
Bajaj Auto will raise production capacity by up to 20% by FY27-end at its Waluj and Akurdi plants as Chetak EV, commercial-vehicle and motorcycle demand exceeds
Key facts
- Production capacity to increase up to 20% by end-FY27
- First 10% capacity addition due in 3-4 months
- Current overall capacity: 600,000 units per month
- Chetak EV production: about 50,000 units per month
- Q1 FY27 sales: 14.38 lakh two- and three-wheelers, up 29% YoY
- Q1 revenue: ₹17,244 crore, up 37% YoY
- Q1 net profit: ₹2,983 crore, up 42% YoY
- Over 1.5 lakh EVs delivered in Q1
- 10 additional models planned, including two new 125-150cc Pulsar motorcycles
Why this matters
Bajaj Auto’s EV-led capacity buildout reinforces the strategic value of partnerships or acquisitions that strengthen charging, battery, supply-chain and retail-distribution capabilities.
What to watch
- Chetak waiting periods, monthly VAHAN registrations and booking-to-delivery conversion after the first 10% capacity increase.
- Dealer inventory days and wholesale-versus-retail sales divergence.
- Realized EV pricing, dealer incentives and gross-margin commentary as competitors respond.
- On-time commissioning of Waluj and Akurdi expansion, plus any supplier constraints in battery cells or electronics.
- Sell-through and mix of the two new 125–150cc Pulsars relative to incumbent Pulsar models.
- EV policy changes, subsidy developments, financing rates and charging-infrastructure expansion.
- Prioritize capacity allocation toward high-waiting-period Chetak variants and cities with the strongest retail conversion.
- Expand dealer charging, service-bay capacity and spare-parts availability alongside vehicle output to prevent after-sales bottlenecks.
- Use the 10-model launch window to segment price points carefully and avoid cannibalizing existing Pulsar and Chetak demand.
- Secure batteries, motors, controllers and semiconductor supply under longer-term agreements before the full FY27 capacity ramp.
- Increase retail-finance partnerships and exchange programs to convert prospective EV buyers as availability improves.