- 13 Jun 2022
- ICICIdirect Research
Bajaj Auto commissions new electric 2-W manufacturing plant
BAJAJ-AUTO - 10892 Change: 83.70 (0.77 %)News: As per media sources, the company has commissioned a new electric vehicle (2-W) manufacturing plant at its R&D site in Pune with a capacity of 5 lakh units per annum. The total investment in this domain is envisaged at ~Rs 750 crore, which is a combination of capex spend by the company (~Rs 300 crore) and its key vendors in the supply chain.
Views: It is broadly on expected lines and was guided by the company during its previous analyst interactions. The company expects to ramp up volumes in the electric 2-W space with on-ground presence in the form of Chetak Scooter. It expects to ramp up volumes to ~5,000 units per month vs. its competitor i.e. TVS Motors, which has guided to ramp up volumes to ~10,000 units per month by the end of Q1FY23. The company’s electric offering in the 3-W space is keenly awaited.
Impact: Neutral