### **Overview** Bajaj Auto Limited remains one of India’s leading two- and three-wheeler manufacturers and the **world’s largest three-wheeler producer**. The company is undergoing a transformative journey, strategically pivoting toward **electrification**, **premium segment expansion**, **global market development**, and **digital integration**. With strong domestic leadership, a resilient export business, and growing profitability in newer ventures, Bajaj Auto is reinforcing its position as a global mobility leader. --- ### **Strategic Business Segments & Performance (Aug–Nov 2025)** #### **1. Electric Vehicle (EV) Leadership** Bajaj Auto has **emerged as the market leader in both electric two-wheelers and electric three-wheelers** in India. EVs now account for **over 20% of domestic revenue**, up from 14% in FY24. - **Chetak Electric Scooter (e2W):** - **Market leadership achieved**, with market share rising to **21%** in Aug 2025 (from 12% in Q1 FY25). - Chetak more than doubled sales YoY and captured **~50% of the industry’s incremental growth**. - Launched **Chetak 35 series** with best-in-class **range, faster charging, enhanced boot space**, and improved profitability. - Portfolio now covers premium (>₹1 lakh) and affordable variants; **85% of sales come from premium models**, where it holds **31% market share**. - Available across **750 cities**, supported by **over 4,000 touchpoints** including 310+ exclusive experience centers. - Supply chain constraints due to **HRE magnet shortages from China** caused **~40–50% production shortfalls in July and August**, but improvements are underway. - **Electric 3-Wheelers (eAutos/e3W):** - Achieved **leading position with 36% market share** in L5 category, up 1,000 bps YoY. - Maintains **>75% market share** in ICE 3-wheelers and now holds **over 35% in eAuto**. - Launched **GoGo brand** for electric 3-wheelers, targeting leadership in a market growing at 4–6% CAGR. - Successful launch of **7012 widebody model** boosted ASPs and segment profitability. - Production constraints (~25–30% shortfall due to HRE magnets) observed but recovery expected. - **EV Profitability Trends:** - R&D, localization, and procurement improvements have brought **EV portfolio close to double-digit EBITDA margins**. - Some Chetak models are already EBITDA positive, reducing overall margin drag. - e3W margins are **on par with ICE models** when PLI incentives are considered. #### **2. Pro Biking Division (KTM & Triumph)** A high-margin, high-growth engine, this segment is central to Bajaj Auto’s premiumization and global expansion strategy. - **KTM:** - Strong performance with **annual India sales >560,000**, adding ~60,000 new customers annually. - KTM India contributes **~10% of Bajaj’s EBITDA** (₹925 Cr in FY24) despite only 7% of sales—underscoring its value-accretive nature. - Over **400 retail stores** across **300 towns**. - Growth driven by **Duke 200/250**, **Adventure 390**, and **KTM 450 Rally-inspired models**. - **KTM Enduro 390 R** launched—dual-sport performance motorcycle raising category benchmarks. - **Brand engagement** via **Pro-XP series**, including the fully booked Great Ladakh Tour. - **Triumph:** - Domestic sales **up over 60% YoY**, with **11,000 units sold in a single quarter**. - **Scrambler 400XC** and **Speed 400** launched in new configurations, expanding appeal. - Expanded to **136 premium showrooms across 100 cities**, doubling YoY footprint. - **~65% of Triumph dealers are existing Bajaj Auto dealers**, enabling rapid, cost-efficient scaling. - Exports ongoing; global brand building through curated experiences and international distribution. - **KTM Restructuring & Acquisitions (Jul 2025):** - Bajaj Auto is acquiring **full control of PBAG (Pierer Bajaj AG)** and **majority stake in PMAG/KTM**. - Gains **direct ownership of KTM, Husqvarna, and GASGAS**—three globally recognized brands. - KTM AG, headquartered in Austria, sold **382,000 motorcycles in CY23**, with a **debt-free balance sheet**. - Strategic benefits: - Access to **advanced R&D and engineering**. - Entry into **developed markets** (Europe, USA, Australia) via existing infrastructure. - **Joint platform expansion** up to **990cc**, potentially **doubling Indian KTM exports**. - Leverage **frugal engineering and Indian supply chain** for global cost advantage. #### **3. 3-Wheeler Business (ICE & EV)** Dominant in both traditional and emerging electric segments. - **ICE 3-Wheelers:** - Holds **~75% market share**; leadership driven by **CNG vehicles (60% of segment sales)**. - Strong synergy with **public sector CNG distributors**, ensuring high demand. - Average Selling Prices (ASPs) 15% higher for CNG units, improving margins. - **EV 3-Wheelers:** - **Sustained 100,000+ units/quarter run rate**. - Focused on **markets with ICE restrictions** (e.g., UP, Eastern India) where eAutos offer regulatory advantage and lower TCO. - Targeting **e-rickshaw users** for upgrades to higher-quality, reliable eAutos. - **PLI-eligible** due to >50% domestic value addition; benefits pending certification. #### **4. CNG Innovation – Freedom 125** - Launched the **world’s first integrated CNG-powered motorcycle**, targeting **100–125cc segment**. - Offers **~50% lower operating cost**, with dual-fuel (CNG + petrol) capability. - Sales exceeded **60,000 units** (as of Jun 2025); strong adoption in **high CNG-pump-density areas** (Delhi, Kerala). - Adoption limited in low-density zones due to **range anxiety and refueling pressure issues**. --- ### **Operations & Financial Strength (as of Nov 2025)** - **Financial Health:** - Maintains a **strong balance sheet** with **₹16,726 crores in surplus funds**. - No debt; robust **free cash flow generation**. - Invested in KTM Austria via subsidiary **Bajaj Auto International Holdings BV** (₹1,525 Cr), and **₹300 Cr to BACL**. - **Manufacturing & R&D:** - **Chakan plant** received **'World Class TPM Award' from JIPM (2024)**—first Indian automaker to achieve this. - Implemented **robotics, automation**, and **4S Framework** under **Project Velocity** to streamline operations. - **Bajaj Auto Spain, S.L.U.** established as an **Engineering Design Centre**. - **Bajaj Auto Technology Limited (BATL)**, formerly Chetak Technology, now focused exclusively on **EV R&D** across powertrains, electronics, fuel cells, and software. - **Bajaj Auto Credit Limited (BACL):** - Wholly-owned captive NBFC achieving **>40% financing penetration**. - **1 million customers served**, **INR 12,000 Cr AUM**, and **PAT of INR 102 Cr in Q1 FY26**. - Digitally driven, operationally efficient, and key enabler for customer affordability and sales conversion. --- ### **Growth Strategy (Nov 2025 Outlook)** 1. **Regain 125cc+ Domestic Leadership:** - Pulsar delivered **~₹15,000 Cr annual revenue**, with **INR 10,000 Cr from domestic sales**. - 75% of motorcycle revenue now from 125cc+, where market share has recovered to **27%**. - Launched **6 new Pulsar variants in Q4 FY25**, targeting commuter, sporty, and style-focused subsegments. 2. **Global Market Expansion:** - **Brazil** targeted as **top-3 market**, with **local assembly plant in Manaus (20k units/year, scalable to 50k)**. - Entered **e-mobility-as-a-service** via **₹165 Cr investment in Yulu**, supplying **30,000 low-speed EVs**. - **Dominar outsells in Mexico vs. India**—a sign of strong international brand resonance. - Focus on **LATAM, ASEAN, Europe, and MENA**; exports expected to grow **15–20% YoY**. 3. **Distribution & Customer Experience:** - Strategic dealer selection: partners must have **ambition, funding, and capability**. - Dedicated network teams support **KTM (400+ stores)** and **Triumph (136 stores)**. - **Customer engagement** prioritized via **brand rides, academies, digital platforms**, and exclusive retail experiences. 4. **Technology & Product Innovation:** - **Chetak 30/35 series** rebranded on **new floorboard battery platform**—simpler, safer, easier to service. - Developing **Qute CNG and electric versions** to reignite growth in quadricycle segment. - **AI-driven e-showrooms**, virtual assistants, and digital-first sales model enhancing customer journey.