As the electric vehicle market in India heats up, one of the country’s largest two-wheeler makers, Bajaj Auto, on Thursday said it will launch a dedicated wholly-owned subsidiary to explore growth opportunities in the space.
In an exchange filing, Bajaj Auto said it had received board approval for the incorporation of a wholly-owned subsidiary to “venture into the manufacturing of electric and hybrid vehicles in the two-wheeler, three-wheeler and light four-wheeler category."
The move comes in the backdrop of rising interest in electric mobility, especially electric two-wheelers as revised government subsidies and state government schemes make the vehicles more affordable for the customer and viable to manufacture at scale.
“The wholly-owned subsidiary will leverage the growth opportunities in the evolving mobility space…” Bajaj Auto said in the exchange filing on Thursday. Bajaj Auto already manufacturers the electric scooter Chetak, although the company has so far supplied the scooter in limited volumes.
Upstarts in the electric vehicle space like Ather Energy, Okinawa, and Ola Electric as well as companies like Hero Electric are investing heavily in building up capacity for an exponential increase in electric-two wheeler demand. The Central government’s most recent revision to the FAME-II scheme has led to prices for some premium electric scooters drop by as much as 45 percent-50 percent.
(Edited by : Aditi Gautam)
First Published: IST