Bajaj Auto eyes full play in 40,000-unit e-rickshaw market, but scale-up to be gradual

Bajaj Auto has risen 13 percent in the last three months.

Bajaj Auto is betting big on India’s three-wheeler market, with a sharp focus on the fast-growing e-rickshaw segment, even as it remains cautious about the pace of scale-up in the near term. Speaking during the company’s Q4 earnings call, Chief Financial Officer Dinesh Thapar said the three-wheeler business is structurally poised for long-term growth despite its cyclical nature and regulatory complexities.

"I am very, very optimistic about the three-wheeler business," Thapar said. “It may have its ups and downs, and it has its peculiarities—like parts of it being regulated and the diesel-to-CNG conversion—but the underlying demand remains strong," he added.

The demand, he said, is being driven by India’s persistent need for last-mile connectivity, which is still underserved by public transport systems such as metros, buses, and local trains. "Three-wheelers are a very important vehicle to satisfy India’s hunger for last-mile mobility," Thapar noted, adding that this includes both conventional auto-rickshaws and e-rickshaws.

Bajaj Auto is particularly eyeing the e-rickshaw market, which sees monthly volumes of around 40,000 units. Currently, only about 10 percent of this market uses lithium-ion batteries—the segment that Bajaj intends to tap into with its new offering.

"Obviously, we are going to introduce a lithium-ion product because lead-acid has its own problems,"Thapar said.

The company sees an emerging trend of e-auto rickshaws replacing ageing e-rickshaws, with nearly one-third of current e-auto sales coming from former e-rick owners. Bajaj Auto believes this is a sign that the market is ready for an upgrade and hopes its lithium-ion-based e-rickshaw will appeal to a larger share of the segment over time.

“Our eyes are set on the entire 40,000," Thapar said, while cautioning that FY26 will be more about laying the groundwork than chasing volumes. “It will be a year of observation and building a base. It will not be the year of solid scale-up."

The company will take a phased approach—launching the product, gathering feedback from drivers and passengers, and iterating on design and go-to-market strategy as needed. “This is not something to be plucked,” Thapar said. “It requires a brand with our kind of reach, capability, and a very good product to progressively upgrade the entire segment.”

The Pune-headquartered company's share price closed at Rs 8,874, higher by 0.3 percent from the last close on the NSE. Bajaj Auto has risen 13 percent in the last three months.

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