Following the resolution of last year’s rare-earth supply challenges, Bajaj Auto’s iconic electric scooter brand, Chetak, has returned to the No. 1 spot in VAHAN registrations in October. The company has also confirmed plans to launch an all-new Chetak model early next year with an aim to consolidate its leadership in India’s growing electric two-wheeler market.
Supply chain challenges overcome
During the Q2 FY26 analyst call, Rakesh Sharma, executive director, Bajaj Auto, revealed that the production disruptions earlier this year were caused by the shortage of heavy rare-earth (HRE) magnets, which affected the production of the high-demand Chetak 35 series.
“We experienced a reduction of about 50% compared to our plan due to rare-earth constraints,” Sharma said.
To counter this, Bajaj Auto diversified sourcing to secure lightweight rare-earth components and spread supplies across multiple geographies. By October, the supply chain was fully restored, enabling Chetak to regain its top position within a matter of weeks.
Strong retail presence supports growth
Bajaj Auto’s strong network – 390 exclusive stores and over 4,000 retail points across 800 cities – has strengthened Chetak’s market position. Sharma highlighted that the upcoming model will leverage this wider retail footprint to maintain the leadership momentum.
Expanding EV portfolio and profitability
The revival of Chetak is part of Bajaj Auto’s broader electric mobility strategy, which also includes the electric three-wheeler and the Yulu partnership. The EV business now accounts for about 20% of domestic revenues, delivering double-digit EBITDA margins, reflecting both scale and operational efficiency.
“With the supply chain stable and a new model on the horizon, we are confident of maintaining our leadership in the electric two-wheeler segment,” Sharma said.
The launch of the new Chetak model is set to further strengthen Bajaj Auto’s dominance in India’s EV market, offering consumers advanced features and an expanded electric mobility ecosystem.