Bajaj Auto looks beyond Maharashtra to scale up Chetak EV production

Mumbai: Bajaj Auto may establish a greenfield plant outside Maharashtra for its electric scooter Chetak as the automaker evaluates options to expand production capacity, said people aware of the discussions.

Bajaj Auto is reviewing potential locations outside Maharashtra where most of its production capacities are currently based, the people cited above said, requesting anonymity as the discussions are ongoing. Options under consideration are the company's existing plant at Pantnagar in Uttarakhand or a greenfield unit in one of the southern states.

The company is likely to finalise the location of the new plant by June, the people said.


The move follows uncertainty over incentives under the Maharashtra government's EV policy.

"So far, based on the agreement reached with the erstwhile Maharashtra government, all Chetaks are made at the Akurdi plant in Pune, and all Gogos-the company's electric three-wheelers-at the Waluj plant in Aurangabad," said a person aware of the developments. "However, given the Maharashtra government's recent unwillingness to honour their EV policy, we are now looking outside Maharashtra to expand our EV business."

The Maharashtra government owes Bajaj Auto over ₹60 crore in the form of unpaid subsidies, the person cited above said.

Earlier this month, in an interview with a business news channel, managing director Rajiv Bajaj said the company has received only a fraction of the subsidies due from the state government and believes the remainder may not be paid. An email sent to Bajaj remained unanswered.