Chetak’ssurge pushes Bajaj Auto close toEBITDA break-even in

Backed by rising volumes, cost efficiencies, and PLI support, Bajaj Auto is narrowing losses that once weighed heavily on its EV portfolio.

Bajaj Auto’s electric scooter, Chetak, led the electric two-wheeler segment in the January–March quarter of FY25. Following the roaring success of Chetak, Bajaj Auto is nearing EBITDA break-even for the electric scooter segment, a top company official said on Thursday.

“We have made a very significant journey over the last 18 months on the economics for Chetak. Therefore, when you look at unit economics, assuming pricing holds to the levels at which it currently is, we are very close to breakeven on an EBITDA level, absolutely,” said Dinesh Thapar, CFO, Bajaj Auto, in a post-earnings media roundtable.

Thapar attributed the PLI scheme as a major factor behind this progress. In the past one year, the volumes of Chetak have more than doubled to 2.6 lakh units, according to Thapar. “What has essentially happened over this last year is that the cost savings are coming through from both R&D and procurement, along with the PLI that has funded the pricing adjustments seen in the market and the expansion that has occurred with a margin-diluted product. That’s how we’ve been able to manage the economics of the overall enterprise margin,” said Thapar.

“At a unit economics level, clearly with PLI and PLI-certified models, we now have a line of sight to getting very close to an EBITDA break-even, relative to what was a very significant loss 12 to 15 months ago,” he added.

According to Thapar, the company’s electric three-wheeler has been profitable, despite Bajaj Auto being a late entrant to the segment. “And therefore, when you look at the entirety of the electric business, we’ve moved from a situation of what might have been a loss last year to a marginal profit this year, only because of the scale-up of a profitable electric three-wheeler business, which in many ways has also helped offset the dilution that comes from Chetak,” Thapar said.

Bajaj Auto reported a 6% rise in its profit to ₹2,049 crore in the January to March quarter of FY25, on the back of exports and foreign exchange gains. Despite weak domestic demand, which fell by 8%, the company’s exports surged by 20% in the quarter under review. The company also reported its highest-ever revenue at ₹50,000 crore in FY25.

“Exports have seen a very strong rebound, doubling both volume growth and revenue growth in the current year. Even though export volumes might be lower than in FY22—which was the peak year for exports when the world was flush with liquidity—export revenue is only about $100 million shy of the peak,” said Thapar.

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