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Bajaj Electric Rickshaw
Bajaj has taken a new step towards sustainability and by this, they will be entering into the electric three-wheeler market by April 2023. This move will give tough competition to the existing and top player in the market i.e., Mahindra Last Mile Mobility (LMM).
- Bajaj Electric Rickshaw can be used both by passenger and cargo vehicles.
- Bajaj Electric Rickshaw vehicle will be launched by this month.
- There will be limited Bajaj Auto E3W since the company is focusing on step-by-step mobility.
The new electric three-wheeler by Bajaj will be suitable both for passenger and cargo vehicles which will lead to the connection between passengers and cargo goods. As mentioned by the Executive director of Bajaj Auto Mr. Rakesh Sharma, “We will start the sales in April for cargo and passenger electric three-wheeler. There will be a limited launch as we want to take it step by step, as it is very important to give a stable product to the commercial user.”
All the ARAI and FAME approvals have been taken by the company and the vehicles will be made available in the market within a few days.
As per the executive director’s message, there can be a price hike in the electric three-wheeler but this will be tested later as the launch approaches. “We are looking not just at the OBD 2 norms but also checking the expected raw material cost increases. The prices will go up but I do not expect the demand to be hurt. It will not impact the top half of the segment; even in the bottom half, it will have a very marginal impact,” Sharma said.
As per a recent ICRA report, the adoption of electric three-wheelers in India is expected to witness a substantial surge, increasing from the existing 8% to a range of 14% to 16% by FY25. The rating agency further anticipates that with the growing popularity of this product and the gradual resolution of financing challenges, its penetration rate may soar to 35-40% by FY30.
Bajaj Auto’s Performance in ICE and CNG Vehicles
If we see the performance of Bajaj Auto in the ICE and CNG vehicle sector, then they have captured a massive share of 76% in the market. This new foray of Bajaj Auto into the EV three-wheeler sector won’t be a big issue.
This projected surge in the prevalence of electric three-wheelers in India is not only indicative of the shift towards sustainable mobility solutions but also underscores the potential for the automotive industry to address environmental challenges while driving economic growth.