Bajaj Auto to create new subsidiary for electric vehicles
Two and three-wheeler manufacturer Bajaj Auto Limited, based in Pune, India, said it will establish a new subsidiary company for its electric vehicles business. The board of Bajaj Auto has already approved the plan.
“The wholly owned subsidiary will leverage the growth opportunities in the evolving mobility space and will help the company venture into the manufacturing of electric and hybrid vehicles in the two, three and four wheelers category,” the company said in a filing with the Bombay Stock Exchange, where its shares are listed.
The name of the new corporate entity is still being finalised and is subject to approval by the Ministry of Corporate Affairs. The subsidiary will have a proposed authorized capital of INR100 crores (USD13.5 million).
“This gives us the freedom to enter into partnerships, engage in discussions in an agile manner, manage the workforce and have a single-minded focus on the category, which in a larger organisation can sometimes get diffused,” Rakesh Sharma, Bajaj Auto executive director, told Economic Times, a local newspaper.
Bajaj Auto already sells an electric scooter under the Chetak brand. It has also partnered with shared-mobility startup Yulu. It is also working on performance electric motorcycles with partner KTM. Bajaj Auto is also working on an electric three-wheeler and a quadricycle.
The company announced in December that it was building a new plant at Chakan, Pune, to make electric vehicles and high-end motorcycles under the KTM and Triumph brands. The INR650-crore (USD87.5 million) factory is scheduled to be operational by 2023.