Bajaj Auto's Strategic Momentum in Electric Mobility and Global Exports

Bajaj Auto’s strategic pivot toward electric mobility and global exports has positioned the company as a formidable player in India’s evolving automotive landscape. Amid supply chain disruptions and global competition, the firm’s ability to innovate, adapt, and scale offers compelling evidence of its long-term growth potential.

Supply Chain Resilience: From Crisis to Innovation

In July 2025, Bajaj Auto faced a 50% drop in EV production due to a rare earth magnet shortage, a critical component for electric motors [4]. Rather than retreating, the company accelerated its R&D efforts, pivoting to low rare earth (LRE) magnets and advancing magnet-free motor technology, which is expected to be fully operational by March 2026 [1]. This agility not only mitigated immediate production risks but also positioned Bajaj to reduce dependency on volatile global mineral markets. By diversifying sourcing and investing in proprietary solutions, the company has demonstrated a proactive approach to supply chain resilience—a critical factor for sustained EV growth.

Electric Vehicle Expansion: Margins and Market Share

Bajaj’s EV portfolio is nearing double-digit operating margins, contributing over 20% to domestic revenue in 2025 [2]. The Chetak e-scooter, in particular, has been a standout, capturing 21% market share in Q1 2025 and achieving positive EBITDA for select models [2]. The launch of the Chetak 30 Series, featuring a new floorboard battery platform, has further enhanced functionality and economics, driving retail volumes to more than double year-on-year [3]. Meanwhile, electric three-wheelers saw a 376% sales growth compared to the previous year, securing a 36% market share in the L5 segment within two years of launch [4]. These metrics underscore Bajaj’s ability to scale EV adoption while maintaining profitability.

Export-Driven Growth: A Global Footprint

Bajaj’s export strategy has been a cornerstone of its 2025 success. The company reported a 28% surge in Q2 2025 exports to 182,857 units, with a target of 160,000–170,000 units per month by late 2025 [3]. Total FY2025 exports hit 1.86 million units, a 13.9% increase from FY2024, driven by strong demand in Africa, Latin America, and Asia [5]. This global diversification reduces reliance on domestic markets and taps into emerging economies where EV adoption is accelerating. With a distribution network spanning 17 countries, Bajaj is well-positioned to capitalize on the $1.2 trillion global EV market projected to grow at 12% annually through 2030 [6].

Financial Performance and Strategic Positioning

Bajaj’s Q1FY26 results highlight its financial strength: a 14% year-on-year net profit increase to ₹2,210 crore, driven by robust exports and EV sales [5]. The company’s premium motorcycle segment, including KTM and Triumph models, also contributed 25,000 units sold in the domestic market—a 20% YoY rise [5]. This dual focus on electrification and premiumization reflects a balanced approach to capturing both mass-market and high-margin segments.

Risks and Mitigation

While Bajaj’s strategies are robust, challenges remain. The rare earth magnet shortage, though partially addressed, could delay Q2 e-scooter production to 50–60% of planned levels [2]. However, the company’s investment in magnet-free technology and alternative sourcing options—expected to be fully de-risked by late 2026—mitigates long-term exposure [1]. Additionally, geopolitical tensions in key export regions like MENA could impact growth, but Bajaj’s diversified regional focus reduces this risk.

Conclusion: A Leader in India’s Mobility Revolution

Bajaj Auto’s combination of supply chain innovation, EV market leadership, and export-driven growth paints a compelling picture for long-term investors. By addressing bottlenecks proactively and leveraging India’s push for self-reliance in critical minerals, the company is not only surviving but thriving in a competitive landscape. As global EV demand surges and emerging markets adopt cleaner mobility solutions, Bajaj’s strategic momentum positions it as a leader in the next phase of India’s automotive evolution.

Source:
[1] India's EV Supply Chain Resilience and Bajaj Auto's Strategic Recovery [https://www.ainvest.com/news/india-ev-supply-chain-resilience-bajaj-auto-strategic-recovery-2508/]
[2] Bajaj Auto's EV Portfolio Nears Double-Digit Margins, Contributes 20% to Domestic Revenue [https://scanx.trade/stock-market-news/earnings/bajaj-auto-s-ev-portfolio-nears-double-digit-margins-contributes-20-to-domestic-revenue/16439479]
[3] Bajaj Auto's Electrification and Export Momentum [https://www.ainvest.com/news/bajaj-auto-electrification-export-momentum-strategic-catalyst-long-term-growth-2508/]
[4] Management Discussion & Analysis - Annual Report 2024-25 [https://investors.bajajauto.com/ar25/management-discussion-analysis/]
[5] Bajaj Auto Q1 profit up 14% as exports, EVs and premium ... [https://www.business-standard.com/companies/quarterly-results/bajaj-auto-q1-profit-up-14-revenue-rises-10-on-strong-exports-ev-sales-125080601169_1.html]
[6] Bajaj Auto's exports hit record highs. But for how long? [https://www.filtercoffee.co/company-earnings/bajaj-autos-exports-hit-record-highs-but-for-how-long]