Bajaj Auto looks beyond Maharashtra to scale up Chetak EV production

Summary

Bajaj Auto is evaluating options outside Maharashtra to expand production of its Bajaj Chetak electric scooter as it scales capacity and navigates policy uncertainty over delayed incentives.

PUNE, March 11, 2026 — Bajaj Auto is considering shifting future electric vehicle (EV) manufacturing capacity beyond Maharashtra as it ramps up production of the Chetak scooter, according to people familiar with the development.

The company is evaluating expansion through its Pantnagar facility in Uttarakhand or a potential greenfield plant in southern India. A final decision is expected by June, the report said.

Scaling ambitions

Bajaj aims to increase Chetak production to about 40,000 units per month by April 2026, reflecting rising demand for electric two-wheelers in India.

At present, the company manufactures the Chetak at its Akurdi plant near Pune, while electric three-wheelers are produced at its Waluj facility in Aurangabad.

Policy friction weighs on strategy

The expansion plans come amid tensions with the Maharashtra government over unpaid EV incentives. According to the report, dues exceeding ₹60 crore remain unsettled.

Managing Director Rajiv Bajaj has publicly criticized the state’s EV policy, describing implementation challenges and delays in subsidy disbursement in recent remarks.

Why diversify now

Industry analysts say expanding outside Maharashtra could offer multiple advantages:

• Risk diversification: Reduces dependence on a single state’s industrial policy framework.
• Logistics benefits: Positions production closer to southern markets with growing EV adoption.
• Operational efficiency: Leverages existing supplier ecosystems, particularly at Pantnagar.

FAQs

Q1. Is Bajaj shifting existing plants out of Maharashtra?

No. Current EV production continues at Akurdi and Waluj; the review concerns future expansion.

Q2. Which models are affected?

Primarily the Bajaj Chetak electric scooter, though the broader EV strategy includes three-wheelers.

Q3. Why are subsidies important?

Delayed incentive payments affect production planning and long-term investment confidence.

Q4. When will Bajaj finalize the location?

A decision is expected by June 2026.

Q5. Are competitors also expanding?

Yes. Some rivals continue investing in Maharashtra, reflecting mixed industry responses to policy risks.