Despite denying plans to introduce electric variants of its Pulsar and Platina models, Pune-based Bajaj Auto has affirmed that it is actively working to develop battery-run motorcycles for the global market.
In a post-earnings conference call, Dinesh Thapar, CFO of Bajaj Auto Ltd, said the company would lean on its technical expertise to develop e-motorbikes, in much the same way that it had developed Chetak electric scooters.
“We’ve got a full funnel of work currently underway through an in-house R&D team … for the (e-motorcycle) product,” said Thapar, adding, “One of the things that we are going to do is to ensure that the product IP and the IP for all the critical components is developed by and vests with Bajaj Auto.”
However, Thapar clarified that the availability of electric motorcycles is still some years away due to the absence of “form factors” (essentially the physical design/shape, size and physical specifications of the bike).
“The form factor that is conducive for an EV, given the size of the battery and the battery pack, is really a scooter. It’ll take a while for us to figure out the form factor of where to put a large battery pack (in an e-motorcycle)," explained Thapar.
Thapar’s comments echo the views of Eicher Motors Limited’s MD and CEO Siddharth Lal, who had earlier stated that long-range e-motorbikes need to be equipped with “much bigger batteries”. That would increase the cost tremendously and make the product “super uncompetitive” compared to ICE versions, Lal had said.
No inorganic plans
Thapar claimed Bajaj Auto remains undeterred despite EV startups rolling out multiple e-motorcycles over the last few quarters. Furthermore, the company is neither looking for an alliance nor aiming to acquire a new-age homegrown startup specialising in motorcycles, he added.
“I don’t think that the form factor is widely accepted and fully sorted out to deliver on capability and performance in its current shape. So, that might still take some time,” said Thapar, without mentioning the names of any motorcycle startups.
The Bajaj Auto CFO said that even though there are opportunities for inorganic growth all the time, the company has not found any worthwhile targets in the e-motorcycle segment. “I haven’t heard of too many inorganic opportunities in the motorcycle space because there really hasn’t been any sizable player as of date. There could be one or two trying it very subscale,” he explained.
“Invariably, I think the question is, does the asset really offer a rich R&D pipeline, innovation, and capability that is sustainable, or is it really a lot of assembling of products. It’s also about who the owner of the product IP is,” said Thapar, who was previously with Reliance Retail.
The CFO, however, hinted at the possibility of Bajaj Auto tying up with KTM for product development. “We have already allied with Yulu in the micro-mobility space, wherein the platform and the vehicle are built by us for them. We would like to leverage on our partnership with KTM or with Kiska, which is part of the KTM Group and is into automotive design. The partnership with Triumph is just starting off and is currently focused on the development of (ICE) motorcycles.”
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