Bajaj Auto targets 25%+ capacity expansion, 10 launches and wider Chetak EV rollout
Bajaj Auto plans to lift annual capacity from 7.11 million to more than 9 million units over the next few quarters, launch or upgrade 10 motorcycle models from August, and expand Chetak EV availability. The company is also open to a strategic partner for KTM, though it is not actively seeking one.
What happened
Bajaj Auto plans over 25% Indian capacity expansion, 10 motorcycle launches and broader EV availability as Chetak demand exceeds production. It is open to a KTM
Key facts
- More than 25% annual capacity expansion
- Capacity to rise from 7.11 million to more than 9 million units
- 10 new or upgraded motorcycle models planned
- 12 EV models
- 74.9% controlling stake in Pierer Mobility AG and KTM AG
- €800 million acquisition
- 10-15% availability impairment in Q1
- Export run-rate of around 250,000 units per month
- Domestic two- and three-wheeler demand growth forecast at 8-10%
Why this matters
Bajaj’s openness to a KTM strategic partner indicates optionality for capital, technology or market access, despite no active sale process.
What to watch
- Monthly domestic two-wheeler registrations, retail-sales versus wholesales, and festive booking trends.
- Dealer inventory days, discount intensity and financing approval rates, especially in rural and commuter segments.
- Chetak monthly registrations, new dealer/service-point additions, model-wise pricing and battery-supply availability.
- Utilization progress toward more than 9 million units and evidence of incremental capex or commissioning delays.
- Competitor launch calendars, incentives and capacity actions from Hero MotoCorp, TVS, Honda and Ola Electric.
- Export demand trends in Africa, Latin America and South Asia, plus currency and trade-policy changes.
- Any formal KTM partner process, valuation discussion or capital-commitment announcement.
- Sequence the 10 motorcycle launches around festive demand and high-volume commuter/premium segments.
- Accelerate Chetak dealership, service and charging-adjacent coverage in high-EV-penetration cities before broad national rollout.
- Secure component capacity for batteries, electronics, motors and key ICE parts to avoid launch-related supply bottlenecks.
- Use capacity flexibility to shift mix between domestic motorcycles, exports, three-wheelers and EVs if demand diverges.
- Assess KTM strategic-partner options primarily as a capital, technology and international-distribution lever rather than an immediate asset sale.