Chetak EV domestic sales grow over four-fold in FY23: Bajaj Auto

Bajaj Auto's domestic sales of its electric scooter Chetak grew over four-fold to 36,260 units in FY23, with the easing of global semiconductor shortage, according to the company's latest annual report. In FY22, Chetak electric scooter clocked sales of 8,187 units, as per Bajaj Auto's Annual Report for 2022-23.

"The global semiconductor shortage that affected the industry, right up to the first quarter of FY2023 also affected the Chetak. Thus, despite market demand, Bajaj Auto could not produce the quantities needed right up to the end of Q1 FY2023," it said. Thereafter, Bajaj Auto said, "the supply-side constraints eased, and we increased the manufacturing of the Chetak".

The iconic brand Chetak was re-introduced in the market as an electric scooter in FY2021. In the year ended March 2021, domestic sales of Chetak EV were at 1,395 units. The Chetak is currently sold through 105 dealers present across 84 cities, the report said.

In his address to shareholders, Bajaj Auto Chairman Niraj Bajaj recollected that in FY22, the scarcity of semiconductors had impacted the production of motorcycles and top-of-the-line electric vehicles like Chetak.

"Thankfully, this terrible supply scarcity was over by the end of the first quarter of FY2023. Thereafter, your company was all set to increase substantially production and sales," he wrote. Bajaj also pointed out that the company's exports, which accounted for 52.7 per cent of Bajaj Auto's net sales in FY22, dropped both in volume and in value terms in FY23.

He pointed out political and economic uncertainties in several major importing countries such as Nigeria, Egypt, Sri Lanka and Bangladesh; demonetisation in Nigeria; unavailability of US dollars in the hands of importers as some of the main reasons for the drop in overseas sales.

"Bajaj Auto was not the only company that was affected. All exporters were. Under the circumstances, your company consciously decided to 'bite the bullet' and reduce its exposure in some of its key international markets," he said.

Catch the latest stock market updates here. For all other news related to business, politics, tech, sports, and auto, visit Zeebiz.com.