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Informist, Tuesday, Jul. 21, 2026

 

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--Bajaj Auto: Capacity will come on-stream in phases in FY27 
--CONTEXT: Comments by Bajaj Auto management in post-earnings press call 
--Bajaj Auto: Seeing motorcycle sales grow continue despite fuel price hikes 
--Bajaj Auto: Seeing significantly higher demand for electric scooters post war 
--Bajaj Auto: Planning 50% hike in electric 3-W capacity over next few months 
--Bajaj Auto: Will launch electric motorcycle for export mkt by 2028 
--Bajaj Auto: Seeing biggest capacity crunch in three-wheelers segment 
--Bajaj Auto: Will increase capacity by 20?ross ops by end of FY27 

 

NEW DELHI/MUMBAI – Bajaj Auto Ltd. aims to increase its manufacturing capacity across segments by 20% in two phases by the end of the financial year 2026-27 (Apr-Mar), starting with a 10% increase in the next 3-4 months. "The big take-out is the 600,000 units of capacity, as it currently exists, will expand in two phases of 10?ch. So, adding 20% for a timeline that will end by close to the end of this financial year or quarter one next year," Chief Financial Officer Dinesh Thapar told reporters in a post-earnings call Tuesday. This capacity addition will be across the company's business as well as vendor ecosystem, Thapar added.

 

Bajaj Auto is looking to increase the monthly production capacity for Chetak electric scooters to 60,000 units from 50,000 currently. For electric three-wheelers, the plan involves 50% expansion over the next few months.

 

The Rajiv Bajaj-led company reported a record-high top line for the June quarter. Its net profit for the quarter jumped over 42% on year to INR 29.83 billion and revenue from operations rose a little over 37% on year to INR 172.44 billion. While internal combustion engine products sustained their growth trajectory in Apr-Jun, the electric portfolio, which now contributes nearly 30% of domestic revenues, nearly doubled in sales on year, Bajaj Auto said. The company, however, added that capacity constraints limited a further upside.

 

Demand for the Chetak continued to exceed supply, prompting ongoing capacity expansion to support future growth and international expansion, Bajaj Auto said.

 

Thapar said Bajaj Auto is currently seeing the biggest capacity crunch in the commercial vehicle segment, both internal combustion engine and electric three-wheelers. Answering a question from Informist on motorcycle sales following the recent spike in fuel prices, he said, "I think as we exit June, we are clearly seeing growth continue in the market and the market has, of course, absorbed a fair level of pricing through this last quarter as well."

 

On the Chetak, Thapar said demand has risen significantly since the end of the March quarter. Rising fuel prices typically boost demand for high-mileage commuter bikes, particularly in the 100–125 cubic centimetre range, as well as electric two-wheelers, with budget-conscious customers prioritising lower running costs and total cost of ownership.

 

On the launch plans for the in-house electric motorcycle, Thapar said it is likely to take place in FY28, with international markets set to be prioritised before the product is introduced in India. "...there is development work and product work that is already well underway on the development of electric motorcycles," the chief financial officer said. "That is not very far, at least we are starting to see signs of a timeline as to when this will hit the market."

 

Tuesday, shares of the company closed at INR 10,403.50 on the National Stock Exchange, down over 1% from Monday. The company released its June quarter earnings during market hours.  End

 

Reported by Shakshi Jain and Anand JC

Edited by Rajeev Pai

 

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