New Delhi: The festive season has brought about a mini churn in the electric two wheeler (e2W) market, with TVS iQube racing past Bajaj Chetak. As per data from the vahan portal, TVS sold nearly 25,000 units of Chetak till date in October against just under 24,000 units by Bajaj. In September, Bajaj Auto had grabbed headlines when Chetak had become the number two best seller in the market. This neck and neck race between the two brands is likely to continue in the coming months and a key differentiator could be the new product lineup. Bajaj is planning to launch a “new and refreshed range” next month whereas TVS is expected to come up with a sub-one lakh rupee product soon.

During October, Ola Electric sold over 34,000 units till date, accounting for over 30% of the market. Ola’s continues to lead the market comfortably despite the recent controversy over product servicing. So during the month, Ola held sway over 30.5% of the e2w market, with Bajaj and TVS accounting for 21% and 22% share respectively. In other words, these three brands accounted for almost three in four e2w sold in India.

Ather sold a little over 13000 units in October till date, accounting for a little less than 12% market share while Hero MotoCorp was just under 6% with 6262 units.

Bajaj:

Bajaj Auto continues to be upbeat about Chetak. Executive Director Rakesh Sharma said after the second quarter results that the momentum of market share acquisition should increase further with an entirely new refreshed range and upgraded range. This is being launched next month. “The upgraded Chetak will not only have superior and competitive propositions, but will also significantly improve our margin structure,” he said.

Sharma also noted that Bajaj Chetak was now “solidly in the number three position and was actually at an almost shared number two in September. What is more important to note is its momentum and trajectory. From just 10% odd in Q2 FY '24 it has hit 19% in Q2 FY '25, almost doubling the market share.”

Bajaj has already won in the battle with TVS due to a smarter pricing strategy. But a recent tweak in its distribution and retail strategy for Chetak has also helped in tightening the grip over the e2w market. A prominent dealer of Bajaj had said earlier that for about two months now, Bajaj has been retailing its e2w brand Chetak through its existing motorcycle dealerships also, in addition to exclusive Chetak showrooms.

This is a far cry from the initial retail strategy of Bajaj, which was based on selling Chetak through KTM showrooms. This practice was discontinued after some time since sales just did not take off in most states, except Maharashtra. Then, Bajaj decided to sell Chetak through exclusive Chetak showrooms. But even this did not get the desired numbers and now, in a fresh tweak, the OEM is using its existing motorcycle showrooms too to sell Chetak.

This new distribution strategy has ensured deeper rural penetration for Chetak. “This new sales strategy is already working. Rural sales are outpacing those in metro cities, where charging e2ws in apartment buildings is tough and discourages some customers from buying electric products,” this dealer said.

TVS:

On its part, TVS Motor Company is ticking all the boxes for maintain its strong position in the e2w pecking order with iQube: product, price point and distribution network. K N Radhakirshan, XXX, said after the second quarter results that TVS has introduced new variants of the iQube portfolio to “make electric mobility accessible to everyone. We have now three battery options, depending upon the customer usage and the range: one with 2.2 kilowatts, then 3.4 kilowatts and 5.1 kilowatts.” In the last few months, TVS has launched the iQube 09, which has a single battery pack and therefore a lower price than the other variants. The strategy on pricing is clear: the company wants to launch differentiated products at different price points instead of competing on discounts, which many others are offering on their product range.

Is there a sub one lakh rupee product also in the pipeline? Radhakrishnan did not confirm this, merely saying new products are expected to be launched shortly to address different customer segments. A two wheeler dealer had earlier said that a sub one lakh rupee product may be launched sometime next month.

This person said that TVS had suffered somewhat due to the lack of a sub one lakh rupee product. “This is a very price sensitive customer segment and Bajaj has been able to beat TVS almost entirely on the pricing plank.” ends

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