Bajaj Auto will enter the e-rickshaw segment

Delhi Delhi: Bajaj Auto is preparing to enter the domestic e-rickshaw segment by the end of this fiscal to tap the “huge opportunity” in the fast-growing but highly unorganised market, a top company official said.

Bajaj Auto Executive Director Rakesh Sharma told analysts that the company expects to get regulatory approvals for its e-rickshaw by the end of the current quarter, allowing it to enter the segment, which sells about 45,000 units per month. “By the end of this fiscal, we also intend to launch a modern ‘e-rickshaw’ which will set a completely new standard in this segment and provide a very high level of satisfaction to both owners and passengers,” he said.

He said the e-rickshaw segment is almost as large as the auto segment and the new e-rickshaws should generate new business. When asked about the exact timeline, Sharma said, “We expect to launch the e-rickshaw by the end of this quarter, i.e. by the end of FY25. By the time all permissions are in place, it could be by the first week of April or retail sales could start by the end of March.

Explaining the rationale behind the move, he said, “This (e-rickshaws) is a huge opportunity. We don’t sell anything in it. About 50 per cent of the three-wheelers are in the e-rickshaw sector, which is in the north and east, parts of the west.

He further added, “About 45,000 e-rickshaws come for retail sale every month and they come in different shapes and sizes. It is a very fragmented market. A lot of it is import dependent. A lot of it is substandard product, but for certain use cases it is a very good format. Emphasising that the demand exists, Sharma said, “By introducing our e-rickshaw, we hope to organise this market and bring in new business for us. I think in the first quarter of the new financial year we will start seeing real scale growth.”