Bajaj Auto looks to rev up EV biz, KTM bouyed by Q2 profit, revenue surge

Bajaj Auto Ltd is shifting gears after a record quarter, unveiling plans to launch a new Chetak electric platform within months and fast-track its acquisition of Austrian premium motorcycle maker KTM.

The moves come on the back of a record 53% year-on-year jump in net profit to ₹2,122 crore for the September quarter, as revenue rose 20% to ₹16,310 crore, driven by strong international sales and rising demand for premium motorcycles above the 125cc range.

The robust performance came despite a production setback in July and August, caused by a shortage of rare earth magnets used in its electric vehicles, which account for about a fifth of Bajaj’s revenue. “We have been able to resolve the rare earth magnet issue by moving to light rare earth magnets,” said Rakesh Sharma, executive director, during the post-earnings call. The company will “double down” on its electric business with fresh launches and deeper localization, he added.

“In a couple of months, an absolutely new platform for the Chetak brand. On the three-wheeler side, we are also looking at a couple of more launches in the next few months,” Sharma added.

The company is also exploring ferrite magnet-based solutions to cut dependency on heavy rare earth magnets, taking a cue from the struggles during the quarter, which had forced it to produce about half the EVs than what was originally planned for July and August.

During the quarter, Bajaj’s two-wheeler sales in the international market surged 19% to 472,411 scooters and motorcycles as against a 6% decline in the domestic market at 596,576 units.

“Our international revenue during the quarter surged by 35% ...A lot of the other regions apart from Africa are helping us grow,” Sharma said.

Bajaj's surge in revenue and profit came after country's third largest two-wheeler maker TVS Motor Co also announced a 26% year-on-year (y-o-y) jump in revenue to ₹14,051 crore. Net profit of Hosur-based TVS surged 42% to ₹833 crore. The country's largest two-wheeler maker Hero MotoCorp is yet to announce its July-September results.

Honda Motorcycle and Scooter India is the second largest, while Bajaj is on the fourth spot in India's two-wheeler industry.

KTM Integration

Bajaj Auto's management said it is set to complete the acquisition procedure of KTM in Austria after the premium motorbike maker entered bankruptcy in November. In May 2025, Bajaj announced a €800 million debt deal to take over the company.

Before the May acquisition, Bajaj Auto and Pierer Mobility AG ran a joint venture for operating the KTM business. The KTM business will come fully under Bajaj by this month's end.

“We have got eight out of nine approvals required for the completion,” Sharma said, adding that the company should have full control by the end of this month.

Bajaj is now looking to put in place a revival plan for the company to rev up exports and boost sales in the international markets and also increase the share of KTM in the domestic market.

According to Sharma, the company is looking at cost-reduction as well as bringing in a new breed of management to ensure the brand grows sustainably in the future.

KTM earlier contributed about 5-6% to Bajaj's exports, which fell to 1% due to struggles at the brand. Now, Bajaj aims to revive KTM's contribution to boost its presence in the premium markets globally.

Bajaj Auto's shares ended a tad lower today, with the results released after the trading hours. Nifty Auto was up 0.6%.