Bajaj Auto’s iconic electric scooter brand, Chetak, has bounced back to the No.1 position in VAHAN registrations in October, following the resolution of last year’s rare-earth supply challenges. The company has also confirmed plans to launch an all-new Chetak model early next year, aiming 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 of Bajaj Auto, revealed that production hiccups earlier this year were caused by a shortage of heavy rare-earth (HRE) magnets, which impacted output of the high-demand Chetak 35 series.
“We experienced almost a 50% shortfall compared to our plan due to rare-earth constraints,” Sharma said.
To counter this, Bajaj Auto diversified sourcing to secure light rare-earth components and spread supplies across multiple geographies. By October, the supply chain was fully restored, enabling Chetak to regain its top spot in just weeks.
Strong retail presence supports growth
Bajaj Auto’s robust 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 extensive retail footprint to maintain leadership momentum.
Expanding EV portfolio and profitability
Chetak’s resurgence is part of Bajaj Auto’s broader electric mobility strategy, which includes electric three-wheelers and the Yulu partnership. The EV business now accounts for around 20% of domestic revenue, 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 in sustaining our leadership in the electric two-wheeler segment,” Sharma added.
The launch of the new Chetak model is poised to further strengthen Bajaj Auto’s dominance in India’s EV market, offering consumers upgraded features and an expanded electric mobility ecosystem.
