Bajaj to Introduce Affordable Chetak Variant Soon, Priced Under Rs. 1 Lakh

Key Highlights:

• Bajaj Auto confirms plans to expand the Chetak lineup.
• The new Chetak Variant is expected to be unveiled in April.
• Expected price range for the new e-scooter falls under Rs 1 lakh.

Bajaj, has confirmed the company's plans to diversify the Chetak lineup. This strategic move aims to unveil the future plan of the brand to expand its electric scooter portfolio. This decision will help Bajaj to widen its scooter line in different segments. In addition to this, Bajaj has also aimed at expanding its dealership network from 200 to over 500 outlets in the coming months.

Impact of Changes in Government Subsidies

With the foreseen news of the government removing the subsidies on EVs, Bajaj has prepared itself to introduce more affordable variants of Chetak in the market for the consumers. We can say the decision seems to be influenced by the ongoing price reduction of scooters by Ola, Ather and other e-scooter manufacturers.

Features and Specifications

Upcoming Chetak Variant is expected to come with a smaller battery pack and a less powerful motor, to make price reduction and affordability possible. While some features as expected to be missing, Bajaj might avail the new Chetak variant with monochrome LCD cluster.

Long-Term Industry Outlook

With the announcement of a new electric scooter to be unveiled soon, Bajaj highlighted the importance of benefits of subsidy removal, as it will help in filtering out less serious manufacturers and buyers from the market. The transition from the FAME 2 subsidy to the Electric Mobility Promotion Scheme (EMPS) subsidy is expected to encourage sustainable growth in the EV sector.

Electric Mobility Promotion Scheme (EMPS) 2024

• EMPS has been introduced by the Indian government to promote purchases of electric two and three wheelers.
• It is known to all that the FAME-2 scheme will not be exercised after March 31st, 2024. To replace the same, the government has introduced EMPS 2024 which will come into force from April 2024 to July 2024. After July 2024, we can expect the scheme to be replaced or extended further. 
• The main objective to introduce this scheme is to increase the adoption of electric mobility and decrease the industry’s dependency on subsidy. 
• Now, under the scheme, the subsidy has reduced to Rs 5,000/kWh of battery capacity from Rs 10000. 
• The scheme will not cover electric 4Ws.

Expected Price and Competition

The e-scooter is anticipated to launch anytime soon in April or May, at an expected price range of  Rs 1 Lakh to Rs 1.1 Lakh (ex-showroom). Once arriving in the market, the new Chetak variant will compete with popular models like the TVS iQube, Ather 450S, and Ola S1 X.  The scooter has been positioned as an affordable and reliable scooter in the electric two-wheeler segment.

CarBike360 Says

With innovation, Bajaj is all set to strengthen its position in the electric scooter segment. By introducing a more affordable Chetak variant and expanding its dealership network, Bajaj aims to drive sustainable growth and solidify its foothold in the dynamic EV market.