Bajaj Auto Launches Flagship Chetak Even As Rivals Take The Gig Route

Bajaj Auto Ltd. launched a more premium electric scooter on Friday even as rivals target the gig economy to shore up monthly volumes.

The Chetak 35 Series, named after the 3.5 kWh battery powering it, will be available in three variants — 3501, 3502 and 3503 — at Rs 1.2 lakh, ex-showroom Bengaluru, according to a statement. The middle variant is priced at Rs 1,27,243. Prices of the top-of-the-line 3503 are yet undisclosed.

"The Chetak '35 Series' represents our continued momentum in the electric two-wheeler market, where we've solidified our leadership position in recent months," Eric Vas, president (Urbanite Business Unit) at Bajaj Auto, said. "This flagship series is designed to resonate with younger riders… Our comprehensive product range now ensures that there is a Chetak for every rider."

The Chetak 3501 and 3502 will go on sale by the end of the month after they have qualified for subsidy under the PM E-Drive scheme, Bajaj Auto Executive Director Rakesh Sharma said during a media roundtable that followed the launch event. Bookings are now on.

Powered by a 3.5 kWh battery pack — the largest Bajaj Auto has put in an electric scooter so far — the Chetak 35 Series has a claimed range of 153 km. The battery can be charged from 0–80% in three hours. The battery pack, consisting of ‘3170’ cells, is placed in the floorboard of the scooter, thus freeing up additional underseat storage.

The scooter also gets a touchscreen dash with full navigation, as well as safety features, such as engine immobilisation, anti-theft and accident detection.

The latest Chetak breaks cover at a time when rivals Ola Electric Mobility Ltd. and Honda Motorcycle and Scooter India Pvt. have launched scooters aimed at the gig worker. The Ola Gig and Gig+ scooter now has a starting price of Rs 37,000.

Sales of Bajaj Auto's own sub-Rs 1 lakh scooter—the Chetak 2901—are growing faster, but the Chakan, Pune-based automaker is confident of its premium-focused strategy.

"In an electric scooter powered by a 3.2-3.5 kWh battery, you'll recover the higher upfront cost in six to 12 months," Sharma said. "Even if the subsidy goes away, that cost will be recovered in 18 months or so. That's still lucrative for the buyer."

According to Sharma, there's a 50:50 split between Bajaj Auto's electric scooters priced above and below Rs 1 lakh. While the sub-Rs 1 lakh model brings in the volumes, the pricier models shore up profitability, he said.

"This will happen with the Chetak 35 Series as well," Sharma said. "Anyway, we want our customers to have the pride of ownership that comes with a premium product. We are focused on ownerships and not rentals (to gig economy companies)."

Shares of Bajaj Auto closed 2.09% lower at Rs 8,786.65 apiece on the BSE, compared to a 1.49% decline in the benchmark Sensex.