Bajaj Auto - EV Foray Primed For Scale Up: Motilal Oswal

Motilal Oswal Report

We met with the management of Bajaj Auto Ltd. to receive updates on its existing businesses, new growth drivers, and electric vehicle plans.

While export volumes are bottoming out and likely to recover only from Q2 FY24E, its entry in Brazil and the upcoming Triumph launch are the new growth drivers.

Chetak is primed for ramp-up in FY24E and Bajaj Auto expects this to reflect in the next couple of months. The company plans to extend its range of products in FY24E in both two-wheelers and three-wheelers.

It has very recently launched two products under Yulu brand in the low-speed segments, targeting business-to-business and personal categories. These products are developed and will be manufactured by Bajaj Auto, and marketed by Yulu. Over a period, Yulu will pivot towards B2B and goods. The e-three-wheeler launch would happen in a couple of months (instead of March 2023 stated earlier).

However, the management cautioned on commodity cost inflation that is gaining in strength from the lows of Q3 FY23.

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