Bajaj Auto set to unveil budget-friendly variant of Chetak e-scooter
What's the story
Bajaj Auto, one of India's prominent two-wheeler makers, has revealed its intention to launch a cost-effective version of its electric scooter, the Chetak. The firm's executive director, Rakesh Sharma, verified that this new offering is a key component of their strategy to broaden the e-scooter range on our shores. With an anticipated price tag of under Rs. 1 lakh, the launch of this new variant is scheduled for the coming months.
Change
Affordable EV models emerge amid government subsidy removal
The decision by Bajaj Auto to roll out a more budget-friendly electric scooter coincides with the government's plan to withdraw subsidies on electric vehicles (EVs). This policy change has spurred rivals such as Ola Electric and Ather Energy to also debut more economical models. Sharma expressed, "We are confident that the new addition to the Chetak lineup will significantly contribute to sales volumes with an ex-showroom price of under Rs. 1 lakh."
Expectation
New Chetak variant: Features and launch timeline
The budget-friendly Chetak variant is predicted to come with a smaller battery pack, less potent motor, and reduced features. It is likely to be fitted with a monochrome LCD instrument console. The new model's launch is expected in April or May, where it will compete with other affordable e-scooters like the TVS iQube, Ather 450S, and Ola S1 X. Various cost-saving strategies are being employed to reach the lower price point.
Claim
Bajaj Auto's view on subsidy removal and its market impact
Sharma conceded that the withdrawal of subsidies might momentarily impact EV adoption rates, but contended it could ultimately prove beneficial for the market. He stated, "In the long run it is actually an advantage as only serious manufacturers and serious buyers will endure in the market." Sharma also pointed out that the FAME II subsidy will be succeeded by the Electric Mobility Promotion Scheme (EMPS) subsidy, effective from April 2024, to July 2024.
Expansion
Strategy to expand dealership network
Alongside the introduction of a new product, Bajaj Auto is strategizing to extend its dealership network from 200 dealerships to over 500 in the coming months. This expansion could potentially amplify the automaker's market share. The Chetak currently holds the position of the third most popular e-scooter in the market, demonstrating a robust consumer preference for the brand's electric vehicles.