In a significant milestone for the electric vehicle (EV) industry, Bajaj Auto’s Chetak has emerged as the top-selling electric scooter in India, overtaking Ola Electric.
This development, based on December’s VAHAN registration data, was proudly announced by Rajiv Bajaj, Managing Director of Bajaj Auto, during the CNBC-TV18 India Business Leader Awards 2024.
Bajaj Auto’s success reflects a shift in consumer preference and an increasingly competitive landscape in India’s booming EV market.
Chetak Takes the Lead Over Ola Electric
For months, Ola Electric had dominated the Indian electric scooter market, capturing significant market share.
However, December brought a turning point: Bajaj Chetak surged past Ola to become the largest-selling electric scooter in India.
Key Highlights
- Chetak’s Rise: Bajaj Auto recorded 24,978 registrations in November, narrowing the gap with Ola Electric, which registered 27,746 units.
- Market Share Battle:
- Ola Electric: 25.09% market share in November.
- TVS Motor Company: 23.55% (26,036 registrations).
- Bajaj Auto: 22.59% (24,978 registrations).
- New Gen Chetak Launch: Bajaj Auto plans to launch an updated version of Chetak on December 20, potentially consolidating its lead.
“Ola Toh Ola Hain, Chetak Shola Hain”
While celebrating the milestone, Rajiv Bajaj took a playful dig at Ola Electric’s CEO, Bhavish Aggarwal, with his quip: “Ola toh Ola hai, Chetak shola hai”.
This statement reflects the growing confidence of legacy brands in challenging the dominance of new-age EV companies.
Bajaj further emphasized the enduring value of established brands, coining the term “BET” (Bajaj, Enfield, and TVS) to contrast with “OATS” (Ola, Ather, Tork, and Simple), signaling his faith in traditional players over startups in the EV space.
Legacy Players vs. New-Age EV Makers
The Indian EV market is witnessing a dynamic power struggle between legacy automakers and new entrants.
Why Legacy Players Are Thriving
- Extensive Dealer Networks: Brands like Bajaj and TVS have strong dealership and service networks, particularly in Tier 2 and Tier 3 cities, where newer companies face challenges.
- Proven Track Records: Established players benefit from consumer trust built over decades.
- Balanced Portfolios: Legacy automakers offer a mix of electric and internal combustion vehicles, ensuring resilience against market shifts.
Challenges for New Entrants
- Limited Service Infrastructure: Companies like Ola Electric are working to expand service centers, with plans for 4,000 new outlets by the end of December.
- Declining Sales: Both Ola and Ather have recently faced slowing demand, creating opportunities for traditional players to gain ground.
Rajiv Bajaj’s Vision for Bajaj Auto
While accepting the Outstanding Company of the Year award at IBLA 2024, Rajiv Bajaj highlighted three transformative milestones for Bajaj Auto:
- From Value to Premium: Transitioning from value-for-money scooters to high-tech motorcycles, making Bajaj the most valuable two- and three-wheeler company globally by market capitalization.
- Going Global: From a domestic player to a global brand, exporting to over 100 countries under the tagline “The World’s Favourite Indian.”
- Green Energy Transition: Expanding its EV portfolio with innovations like the Chetak Electric and the world’s first CNG two-wheeler, Freedom 125.
The Road Ahead for India’s EV Market
As competition intensifies, the Indian EV market is poised for significant developments:
- Ola’s Ambitious Plans: Ola Electric aims to counter its slowing sales with new products like electric motorcycles and rickshaws by 2025.
- Chetak’s Continued Momentum: With the launch of the new-gen Chetak, Bajaj Auto is well-positioned to maintain its lead.
- Rising Consumer Adoption: Government incentives and increasing awareness of sustainability are driving EV adoption, creating opportunities for all players.
Conclusion: The Dawn of a New EV Era
Bajaj Auto’s rise to the top with the Chetak signals a shift in the EV market, where established players are proving their mettle against startups.
As the competition heats up, consumers stand to benefit from improved technology, expanded service networks, and a wider array of options.
The battle between legacy brands and new-age disruptors continues to shape the future of mobility in India, making this an exciting time for the EV industry. Whether it’s Ola or Chetak, the ultimate winner will be the consumer.
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