BAJAJ MAKES THE FIRST MOVE ON ELECTRIC SCOOTERS
Brings back the Chetak scooter in an electric variant
On Wednesday, in the presence of Road Transport Minister Nitin Gadkari and NITI Aayog CEO Amitabh Kant (NITI Aayog had proposed electrification of two-wheeler industry by 2023), Bajaj Auto MD Rajiv Bajaj launched the first electric two-wheeler from its stable. Through this, it also returned to the scooter segment, which it had exited in 2009. The electric scooter has been named Chetak, which had been a household name in the last decade. writes
Two months ago, Rajiv Bajaj, owner of India’s second largest motorcycle firm, was in a tussle with the government over an aggressive timeline for electrification of the two-wheeler industry.
On Wednesday, in the presence of road transport minister Nitin Gadkari and NITI Aayog CEO Amitabh Kant (NITI Aayog had proposed electrification of two-wheelers by 2023), he launched the first electric twowheeler from the Bajaj stable.
Through this, the firm also returned to the scooter segment, which it had exited in 2009. Aptly, the e-scooter has been named Chetak, which had been a household name in the last decade. “Our future is in our past,” the managing director at Bajaj Auto said. “The fact that Bajaj doesn’t sell scooters is our bigger strength. We are starting from here because there is no conflict of interest. When you enter a new market, you don’t make money from Day 1. The price will not be viable from Day 1, but it will add to our numbers.”
In doing so, Bajaj has become the first internal combustion engine two-wheeler firm to launch an all-electric two-wheeler in India. Hero Motocorp and TVS Motor Company are at different stages of launching and developing such electric two-wheelers. Hero has 35 per cent stake in start-up Ather Energy. India’s big three two-wheeler firms — Hero Motocorp, Bajaj Auto and TVS Motor — had vehemently opposed NITI Aayog’s plan to push for 100 per cent EVS, saying such a transition could jeopardise the sector.
Bajaj didn’t stop at taking a jibe at his rivals. “It amazes me to see people who have done nothing suddenly wanting to revolutionise Indian roads. Failed two-wheeler makers, which couldn’t make normal engines work, are making electric vehicles,” he said. “We are a company with a rich past and strength which gives us confidence to foray into EVS.”
The scooter, pitched as a premium product, will initially be available in Pune and Bengaluru from January 2020 and be priced a little more than ~1 lakh. “We want to gauge the response from consumers, see how it works in the limited infrastructure capabilities and then decide on a pan-indian roll out,” said Rakesh Sharma, executive director at Bajaj Auto.
South Korean Hyundai had launched the Kona — a fully electric four-wheeler — but has warned that unless volume picks up, it will be difficult to manufacture EVS in India. Kona is priced at ~25 lakh.
Availability of lithium-ion batteries is one of the biggest hurdles for electrification. Almost all EVS in India run on imported batteries, mostly from China. At present, a lithium-ion battery accounts for 40 per cent of the total cost of an EV.
“As volume picks up, the manufacturing cost for EVS will come down,” added Sharma.