Bajaj Auto Ltd.'s electric vehicle business has scaled up to deliver better operational income performance this fiscal, according to Executive Director Rakesh Sharma.
"FY25 was a period where our e-business was scaling up and, towards the end of the year, we have gotten rid of the negative margin," Sharma told NDTV Profit. "That allows us a greater degree of freedom to balance out growth and profitability."
EVs now make up a substantial portfolio of Bajaj Auto and are now making up 25% of the company's domestic revenue, he noted.
The company has managed to achieve the milestone of 20% Ebitda margin in the previous three quarters of FY25. "Our approach has been to optimise topline and bottomline. We have put in place a portfolio which should deliver a better performance than the industry," he said.
Bajaj Auto registered 93% growth in sales for March 2025 compared to the same time last year. While on an overall basis, sales are expected to be lower this month, its EV business has been ramping up significantly this year.
The two-wheeler maker got a boost due to Gudi Padwa falling in the month of March this year, versus in April last year. Customers plan their purchases around auspicious days and hence the pivot was strong this month.
The newly launched Chetak on the 3S platform will lead to cost savings and margin growth as well.
The company’s EV business turned net Ebitda positive in the December quarter, though profitability for the Chetak brand alone is still a quarter away.
Also Read: Bajaj Auto Reappoints Rajiv Bajaj As CEO
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