Bajaj Auto to Raise Capacity to 7.75 Lakh Units — Chetak Output to Reach 80,000 a Month by Q4

Bajaj Is Selling More Than It Can Build

Bajaj Auto will expand its production capacity from about 6.25 lakh units to around 7.75 lakh units over the next six to nine months, joint managing director Rakesh Sharma said on the company's Q2 FY27 earnings call. The expansion will be phased, funded entirely from internal resources, and aimed squarely at the three areas where demand is outrunning supply: electric scooters, premium motorcycles and some three-wheeler segments.

The clearest evidence is Chetak. The electric scooter brand crossed one million units on the road, retailed more than 45,000 scooters in September and held a 23% share of the electric two-wheeler market in the quarter. Bajaj still could not build enough of them. It produced about 40,000 Chetaks in September against a plan of 60,000, a shortfall of a third, and the company says it delivered only about three-quarters of the electric volumes it had planned for the quarter.

Bajaj Auto, Q2 FY27	Volume	Growth	What it tells you
Exports	7.8 lakh units	Up 41% year on year	Highest ever quarter, and second straight above 7 lakh
Three-wheelers	1.62 lakh units	Up 13%	Highest ever quarter, demand about 10% above capacity
Pro Biking, KTM and Triumph	40,000 units	Up 31%	H1 at 80,000 units, the best first half for the division
Chetak, September	45,000-plus retail	23% market share	Production constrained at 40,000 units

The Fix Is Already Under Way

Chetak capacity is being raised from 60,000 to 80,000 units a month, with the additional line expected to come on stream in the fourth quarter. Bajaj also plans to add 75 exclusive Chetak stores in the third quarter on top of the 550 it runs today, and wants about 1,000 exclusive outlets within a year. The company says Chetak's profitability has moved into double digits and that its overall electric business, which includes electric three-wheelers, is now margin accretive at a corporate level.

Exports did the heavy lifting in the quarter. Bajaj shipped 7.8 lakh units abroad, up 41%, with motorcycle exports in Africa growing 83% against an industry up about 35%, and Latin America up 44% against 12%.

Festive Demand, and What Comes Next

On the domestic side, Bajaj estimates that two-wheeler registrations grew about 10% in the first 16 days of the festive period, with the 150cc-plus and electric scooter segments growing around 24%. Its own growth in that window was 32%. Sharma expects the industry to hold double-digit growth through the September to December quarter, though at a slower pace because of a higher base last year.

Bajaj is also studying a sixth plant, with four facilities in Maharashtra and one in Pantnagar today, but no site or capital outlay has been approved yet.

What This Means for You

If you have been quoted a long waiting period on a Chetak, the honest answer is that it may improve from the March quarter, not before. Buyers shopping for a premium KTM or Triumph should expect stock to stay tight through the festive season. For investors, the useful signal is that Bajaj is spending on capacity it can already sell, which is a healthier problem than the reverse. Track segment-wise sales on our sales dashboard and compare electric scooters on the comparison tool.

(Sources: Bajaj Auto Q2 FY27 earnings call, 27 October 2026; ETAuto; CNBC-TV18; Investing.com earnings call transcript. Images: Bajaj Chetak electric scooter photographs, CC BY-SA 4.0, via Wikimedia Commons.)

::KEY_NUMBERS:: Capacity | 6.25 lakh to 7.75 lakh units Chetak output | 60,000 to 80,000 a month September retail | 45,000-plus Chetak share | 23% ::TLDR:: Demand is outrunning supply in EVs, premium bikes and three-wheelers Bajaj built 40,000 Chetaks in September against a plan of 60,000 Q2 exports hit a record 7.8 lakh units, up 41% Expansion is funded from internal resources ::CHART:: type: bar title: Bajaj Auto capacity plan (lakh units) labels: Current,Planned in 6 to 9 months values: 6.25,7.75 source: Bajaj Auto Q2 FY27 earnings call ::TIMELINE:: Sep 2026 | Chetak retail crosses 45,000 units, share at 23% 27 Oct 2026 | Q2 FY27 results and earnings call Q3 FY27 | 75 more exclusive Chetak stores to open Q4 FY27 | Chetak capacity reaches 80,000 units a month ::GLOSSARY:: Pro Biking | Bajaj's premium division that sells KTM and Triumph motorcycles Capacity utilisation | how much of a factory's possible output is actually being used Market share | the brand's slice of total sales in a category ::PULLQUOTE:: Bajaj's problem this quarter was not demand. It was that it could only build three of every four electric scooters it had planned to sell. ::PROS:: Capacity is being added where demand actually exists Chetak margins have moved into double digits Exports grew 41% on a record quarterly base Expansion is self-funded, with no equity dilution ::CONS:: September production fell 33% short of plan A sixth plant is still under evaluation, not approved Festive growth is expected to moderate on a high base Three-wheeler demand still exceeds capacity by about 10% ::POLL:: Which Bajaj business will grow fastest next year? || Chetak electric scooters || KTM and Triumph premium bikes || Three-wheelers ::SOURCES:: Bajaj Auto Q2 FY27 earnings call, ETAuto, CNBC-TV18