Bajaj Auto is going to increase its production capacity to meet the growing demand. The company is planning to increase the annual production capacity from around 6.25 lakh units to 7.75 lakh units in the next 6 to 9 months. Due to high demand in electric vehicle (EV), premium motorcycle and some three-wheeler segments, the company is working on increasing its existing capacity. Bajaj Auto’s Joint Managing Director Rakesh Sharma gave this information while discussing Q2 FY27 results.

Record growth in export business

Bajaj Auto’s export business reported record performance in the second quarter. The company recorded sales of 7.8 lakh units during the period, which is 41% higher than the same period last year. For the second consecutive quarter, the company’s exports have crossed 7 lakh units.

The motorcycle market in Africa grew by nearly 35%, while Bajaj Auto’s motorcycle exports grew by 83%. Market growth in Latin America was about 12%, but the company’s sales increased by 44%. The market in Asia fell 7%, although the company’s sales rose 5%. The market in the Middle East and North Africa fell 29%, while the company’s sales fell 24%.

The company has a market share of about 60% in Nigeria and retail sales of about 30,000 units per month. At the same time, exports of the Boxer 125 heavy duty motorcycle introduced in Africa also increased by over 50%.

Chetak production will be increased to 80,000 units per month

Demand for Bajaj Auto’s electric scooter Chetak is also higher than supply. According to the company, Chetak has so far launched one million scooters on the road and its retail sales in September were over 45,000 units. Its market share was 23% during the quarter. However, the company was able to produce only 40,000 scooters in September, against a target of 60,000 units. The company is now planning to increase Chetak’s production capacity to 80,000 units per month by Q4. Apart from this, there are plans to open 75 new exclusive Chetak stores in the third quarter.

The company says that the profit of the Chetak business has reached double digits. Its overall EV business, including three-wheelers, is also now contributing to company-wide profit growth.

Boom in premium bike and three-wheeler business

Sales of Bajaj Auto’s pro biking business, which includes KTM and Triumph, rose 31% to 40,000 units in the second quarter. Sales reached 80,000 units in the first half, a record for the period. KTM’s adventure and high-performance street bikes played an important role in this. On the other hand, the three-wheeler business of the company has also created a record. Sales rose 13% to 1.62 lakh units in the second quarter. The company has a share of around 90% in CNG passenger three-wheelers and over 50% in the cargo segment. Its market share in electric autos was around 32% during September.

Keeping in view the increasing demand, the company is increasing the capacity of both ICE and electric three-wheelers. Currently the demand is about 10% more than the available capacity. The company’s spare parts business also grew by 15% year-on-year for the first time in a quarter at Rs. 2,000 crore was crossed.

The company will increase production of electric scooters to 18,000 units per month.