Bajaj Auto is grabbing incremental share of the electrical two wheeler (e2w) market relatively aggressively, at the same time as rivals proceed to offer robust competitors. One have a look at the information for July this 12 months versus the identical month final 12 months reveals that Bajaj has greater than quadrupled gross sales of the electrical Chetak in these 12 months and is now neck and neck with TVS Motor Firm out there share race. Final month, Bajaj had over 16% share of the market versus TVS’ 18% and Government Director Rakesh Sharma believes this efficiency can be vastly improved within the coming months, because of the launch of the sub one-lakh Chetak 2901 not too long ago.Bajaj’s aggression comes from the Chetak 2901, its first sub one lakh rupees product, and the continued emphasis on increasing the distribution community for e2w. The sub one lakh rupees phase accounts for practically 50% of the e2w market and until now, Bajaj had no presence in it.
Sharma stated not too long ago that the brand new Chetak 2901 will assist Bajaj Auto tackle this explicit phase whereas additionally permitting the corporate to widen its distribution attain. “We had been at 250 shops in June however by the top of July we had reached practically 500 shops and we are going to open 1000 shops by September. Our Q1 FY 25 (April-June) market share was 12% but it surely ought to be famous that we had been at 20% share within the above one lakh rupees phase and virtually nil within the sub one lakh rupees phase. Therefore, play within the sub one lakh rupees phase and in new geographies ought to carry Chetak enterprise considerably, Sharma stated.
Chetak 2901 is priced between INR 96000-100000 and a surge in bookings for this mannequin is believed to have taken general Chetak bookings in July previous the 20,000 unit mark.
Not solely Bajaj, market chief Ola, TVS and another OEMs have additionally launched merchandise within the sub one lakh rupees phase over the previous few months, eyeing finances acutely aware shoppers who don’t thoughts lesser options so long as the product turns into extra reasonably priced. Ather has launched the Rizta – a household scooter which is priced simply above the INR one lakh mark. Ola in the meantime has dropped costs on the SX1 sequence in order that the lineup begins properly beneath the one lakh rupees psychological barrier.
Incumbents rule:
Information from the vahan portal reveals that incumbent two wheeler giants TVS and Bajaj collectively held practically 35% of the e2w market in July this 12 months or greater than a 3rd. Solely Ola Electrical is forward of their mixed energy at practically 39% market share. Pure play electrical firm Ather has misplaced its grip in the marketplace considerably, falling to single digit share of 9.4% this July versus over 12% in the identical month final 12 months. Each different e2w OEM stays in low single digits. Even TVS has loosened its grip of the market a bit, falling from over 19% to about 18% market share within the 12 months until July 2024.
The numerous beneficial properties made by Bajaj and the continued agency grip of Ola and TVS over the e2w market in July 2024 got here at the same time as the general market practically doubled, from 54,616 items in July 2023 to 106,949 items offered final month.
Subsidy video games:
The e2w market has practically doubled in 12 months regardless of the acquisition subsidy being given by the federal government having step by step shrunk and the looming uncertainty over its continuation. From practically 40% of the automobile price, the subsidy is already right down to about 10-15% of the automobile price. In the meantime, the federal government has prolonged the Electrical Car Promotion Scheme (EMPS), which was slated to finish by July 31, by one other two months.
This scheme was launched as a brief time period association, between April one and July 31, to proceed the subsidy regime until a call was taken on whether or not to carry a 3rd version of the unique subsidy scheme known as FAME. Quicker Adoption and Manufacturing of Electrical and Hybrid Automobiles ended final fiscal and with no readability on FAME III, EMPS has now been prolonged until September 30. EMPS will now even have an almost 50% enhance in corpus.
Because the subsidy forwards and backwards has continued, fortunes of erstwhile e2w market leaders have swung broadly, with Hero Electrical, Okinawa and a few others now promoting lower than 500 e2w a month. These corporations had confronted allegations of subsidy misappropriation and subsequent demand notices from the federal government, which ultimately led the to face working capital woes and eventual shrinking of operations.
