In a significant turning point for India’s electric mobility sector, Bajaj Auto has reported that its electric vehicle (EV) business now contributes 25% of its domestic revenues, with the portfolio delivering double-digit EBITDA margins. This marks a decisive shift from an emerging opportunity to a mature, profitable growth engine, driven primarily by the iconic Chetak electric scooter and a strong electric three-wheeler lineup.
Speaking to the media after the Q3 FY26 earnings announcement (quarter ended December 31, 2025), Rakesh Sharma, Executive Director at Bajaj Auto, highlighted the rapid transformation: “Twenty-five percent of our domestic revenues are now EV,” he stated. “Bajaj Auto has emerged as one of the largest players in India’s electric mobility space.
”The turnaround is fueled by operating leverage from surging volumes. The Chetak electric scooter led the charge, posting a standout performance with ~70% sequential growth in the quarter. This rebound followed earlier supply chain constraints, enabling Bajaj to reclaim the number-two position in the e-scooter market (and in some contexts, positioning the company as a top contender overall). The electric three-wheeler segment also hit record highs in billing and retail, regaining the number-one spot by December.
Bajaj Auto’s EV momentum is further amplified by strategic expansions. The company recently broadened the Chetak range with a new series (including models like the C25 and updates in the 35 series platform), making the scooter more accessible, lighter, and appealing to a wider audience—including newer riders and urban commuters. These enhancements have accelerated volume growth, broadened the addressable market, and improved overall economics.From a profitability perspective, the EV business has flipped from negative margins just a year ago to double-digit EBITDA today. This inflection comes as scale kicks in: higher volumes spread fixed costs, supply chains stabilize, and production-linked incentives (PLI) support certified models (Bajaj boasts 25 PLI-eligible EVs). Sharma emphasized that the EV portfolio has “fundamentally altered the economics of the business,” turning what was once a high-investment area into a key profit contributor.
This achievement aligns with broader company records in Q3 FY26: standalone revenue crossed ₹15,000 crore for the first time (up ~19% YoY to ₹15,220 crore), with the domestic business delivering its highest-ever quarterly performance. The electric segment’s contribution was so strong that Q3 EV revenues alone surpassed the entire previous fiscal year’s EV total by mid-quarter.
Bajaj Auto’s success underscores a practical reality in India’s EV transition: two- and three-wheelers—agile in dense traffic, cost-effective, and high-usage—offer faster paths to profitability and scale than four-wheelers. With the Chetak’s heritage revival, aggressive product refreshes, and leadership in electric autos, Bajaj is not just participating in the green shift—it’s leading it profitably.As India pushes toward higher EV penetration, Bajaj Auto’s results prove that focused execution in the right segments can deliver both volume dominance and healthy margins. The company’s EV story is no longer about potential—it’s about proven, accelerating reality.
