2025 Bajaj, Ather & TVS To Likely
The Indian electric two-wheeler market is currently in a fascinating phase of transformation, with legacy players like Bajaj Auto and TVS Motor Company aggressively challenging the dominance of EV-only startups like Ola Electric and Ather Energy.
While the landscape is dynamic, and new developments emerge frequently, a broad outlook on the strategies and likely future moves of Bajaj, Ather, and TVS reveals a fierce competition for market share, driven by product innovation, expanding infrastructure, and evolving consumer preferences.
It’s crucial to note that as of July 2025, there’s a significant development impacting all three: a likely production cut in electric scooters due to a shortage of heavy rare earth (HRE) magnets sourced from China. This is a critical factor influencing their immediate production plans and potentially their long-term supply chain strategies.
Let’s delve into the individual strategies and future outlooks for each of these key players:
Bajaj Auto: Leveraging Legacy with a Strong EV Push
Bajaj Auto, a giant in the Indian two-wheeler and three-wheeler segments, has made a significant re-entry into the electric scooter market with its iconic Chetak brand. Unlike some startups, Bajaj benefits from a vast existing dealer network, a well-established manufacturing base, and deep consumer trust built over decades.
Current Market Position and Recent Performance:
Bajaj Auto has made significant strides in the electric two-wheeler market. In June 2025, Bajaj sold over 23,000 units of the Chetak, marking a remarkable 154% jump year-on-year. This surge has almost doubled Bajaj’s market share to 21.8%, putting it in a strong position, often battling for the top spot with TVS. The success of the Chetak, particularly its expansion into smaller cities, has been a key driver.
Key Strategic Pillars for Bajaj’s EV Future:
Chetak Brand Expansion and Variants:
Affordable Offerings: Bajaj recently launched the Chetak 3001, its most affordable Chetak model, in May 2025. This move is crucial to capture a wider audience, especially price-sensitive buyers in semi-urban and rural areas. This variant is designed to compete with entry-level offerings from rivals.
Performance and Feature Upgrades: While the Chetak 3001 caters to affordability, Bajaj is also likely to continue refining and upgrading its premium Chetak variants (like the Chetak 3501, which offers a certified range of 153 km). Expect improvements in range, charging speed, and smart features (connectivity, navigation) to keep pace with the rapidly evolving market.
Dedicated Chetak Experience Centers (CECs): Bajaj has been expanding its network of dedicated Chetak Experience Centres. These exclusive showrooms aim to provide a premium buying experience and specialized after-sales service for electric scooter customers, differentiating the Chetak from its ICE counterparts and other EV players.
Investment in EV Business:
Bajaj Auto is doubling down on its electric mobility strategy. The company announced in May 2025 that 60% of its FY26 (Fiscal Year 2025-26) capital expenditure (capex) will be directed towards its electric vehicle business. This significant investment, estimated to be around ₹700 crore, will primarily fund EV research and development and new electric product launches.
This commitment signals Bajaj’s long-term vision to be a dominant player in the EV space, moving beyond just electric scooters.
Profitable EV Business & Three-Wheeler Segment:
Interestingly, Bajaj’s EV business, which was previously in the red, has turned profitable. This profitability is largely attributed to the scale-up of its successful electric three-wheeler business (under the “GoGo” brand). Bajaj leads the passenger and cargo electric three-wheeler markets, with a strong EV share in these segments. This success provides a stable financial base to further invest in its two-wheeler EV operations.
Bajaj is launching a new electric rickshaw in July 2025, further strengthening its position in the commercial EV space.
Addressing Supply Chain Challenges:
Immediate Impact: Bajaj Auto is currently facing the most significant impact from the rare earth magnet shortage, with plans to halve its Chetak production this month (July 2025). This is a critical short-term challenge that could affect sales momentum.
Long-term Mitigation: Rakesh Sharma, Executive Director at Bajaj Auto, has stated that their R&D and procurement teams are actively working on developing alternatives to these rare earth magnets. This proactive approach is crucial for long-term supply chain resilience and reducing reliance on a single source.
Future Outlook for Bajaj:
Bajaj is strategically positioned to capitalize on the growing consumer preference for trusted brands as the EV market matures. Their dual focus on mass-market accessibility with the Chetak 3001 and premium offerings, backed by robust investment and a strong commercial EV division, bodes well for their sustained growth.
Overcoming the rare earth magnet supply chain issue will be key to maintaining their current sales momentum. Expect to see more variants of the Chetak, potentially with different battery configurations and feature sets, to cater to diverse customer needs.
Ather Energy: Innovation and a Shift to Family-Oriented Design
Ather Energy, often seen as a pioneer among Indian EV startups, built its reputation on performance, cutting-edge technology, and a premium user experience. While their initial focus was on sporty scooters like the 450X, they are now strategically expanding into the family segment.
Current Market Position and Recent Performance:
Ather Energy has maintained a strong position in the market. In June 2025, Ather sold over 14,500 units, marking a 133% increase from last year and securing a 13.8% market share. The launch and increasing sales of the family-centric Rizta series have played a crucial role in this growth.
Key Strategic Pillars for Ather’s EV Future:
Diversification with the Rizta:
Family-Oriented Focus: The Ather Rizta, launched in April 2024, represents a significant shift for Ather. It’s designed specifically for families, offering practical features like a large 34-litre underseat storage and an additional 22-litre front frunk (one of the largest in the segment). This move directly addresses a large segment of the Indian two-wheeler market that prioritizes practicality over outright performance.
New Rizta Variants: Ather continues to expand the Rizta lineup. The Rizta S 3.7kWh was recently launched in July 2025, offering a larger battery pack (same as the Z 3.7kWh variant) for an IDC range of 159 km, while skipping the TFT touchscreen to make it more affordable. This indicates Ather’s flexibility in offering different price points and feature sets within the Rizta family.
Market Success: The Rizta has been well-received, crossing the 1 lakh unit retail sales milestone within a year of its launch, highlighting the success of Ather’s diversification strategy.
Continuous Innovation in 450 Series and Software:
2025 Ather 450 Series Updates: Ather updated its 450 series (450S, 450X, 450 Apex) in January 2025, introducing new colors, multi-compound tyres developed with MRF for improved grip and TrueRange, and Multi-Mode Traction Control (Rain, Road, Rally modes) for enhanced safety and performance.
AtherStack 6 and 7.0: Ather’s proprietary software platform, AtherStack, is a key differentiator. AtherStack 6, introduced in January 2025, brought features like Google Maps integration, Alexa voice commands, and WhatsApp notifications. The company is set to unveil AtherStack 7.0 at its Community Day in August 2025, promising further enhancements in connectivity and user experience.
MagicTwist Throttle: This innovative system, allowing acceleration/deceleration by twisting the throttle and enabling the scooter to stop even with a fully charged battery, has been extended to more 450X models.
New, More Affordable EL Platform:
A significant development on the horizon is the unveiling of an all-new, more affordable electric scooter platform dubbed “EL” at the Ather Community Day in August 2025. This platform is designed to be versatile and cost-effective, allowing Ather to produce a wider range of scooters at different price points, including potentially much cheaper models for early next year.
This strategic move aims to broaden Ather’s market appeal beyond the premium segment and compete more directly with high-volume, affordable electric scooters. The new platform will likely incorporate cost-effective LFP (Lithium Iron Phosphate) battery packs.
Charging Infrastructure and Services:
Ather continues to expand its fast-charging network, Ather Grid, which now boasts over 3,900 locations across India. This extensive network is a strong selling point for Ather users.
Ather will also unveil a new generation of fast chargers at the Community Day, promising even faster charging times.
Ather has also introduced “Care Service” plans for its electric scooters, focusing on comprehensive after-sales support.
Addressing Supply Chain Challenges:
Ather Energy is also impacted by the rare earth magnet shortage and plans to reduce production of e-scooters by 8-10% in July 2025. While less severe than Bajaj’s immediate cut, it indicates a similar vulnerability.
An Ather Energy spokesperson did not provide specific details on mitigation plans, but like Bajaj, they will need to work on alternative sourcing or magnet-free motor technologies in the long term.
Future Outlook for Ather:
Ather’s future looks promising as it balances its core strength in premium, technology-rich scooters with a pragmatic expansion into the high-volume family segment via the Rizta and the upcoming EL platform. Their continuous software updates and commitment to expanding their charging network reinforce their tech-forward image.
The success of the EL platform in achieving significant cost reductions while maintaining quality will be crucial for their mass-market penetration. Navigating the rare earth magnet shortage effectively will be key for their short-term production stability.
TVS Motor Company: Consistent Growth and Broad EV Portfolio
TVS Motor Company, another established player, has aggressively embraced electrification and is now a frontrunner in the Indian electric two-wheeler market. TVS’s strategy involves a consistent focus on its popular iQube electric scooter, along with strategic expansions into other EV segments.
Current Market Position and Recent Performance:
TVS Motor has been on a strong upward trajectory in the electric two-wheeler market. In June 2025, TVS Motor sold over 25,000 units of the iQube, an impressive 80% increase from last year, securing a leading 24% market share. TVS has consistently topped the monthly e-2W retail sales charts for the last three months (April, May, June 2025) and also leads for Q1 FY2026. This consistent performance underscores their effective EV strategy.
Key Strategic Pillars for TVS’s EV Future:
iQube Expansion and Variants:
Strong Product Portfolio: The TVS iQube Electric has proven to be a highly successful product, with its neutral design, reasonable performance, and various variants (iQube, iQube S, iQube ST) catering to different price points and feature preferences.
Battery Upgrades and Price Adjustments: TVS recently updated the iQube series in May 2025, introducing slightly larger battery packs (now offered in 2.2kWh, 3.5kWh, and 5.3kWh options) and strategically slashing prices by up to ₹26,000. These moves enhance the iQube’s value proposition and competitiveness.
Expanding Dealership Network: The iQube is currently available through 950 dealerships and TVS is aggressively expanding its EV dealer network to even more cities, ensuring wider reach and better accessibility for customers.
New EV Product Pipeline:
TVS has confirmed that new electric two-wheelers are in the final stages of development and are slated for launch between July and September 2025. While specific models haven’t been disclosed, these launches are crucial for TVS to maintain its market leadership and continue benefiting from government incentives. These could include updated iQube variants or entirely new models addressing different segments.
TVS is also looking beyond scooters. They are developing the TVS RTX 300 adventure bike, which has been spotted testing, indicating a future entry into the electric motorcycle segment, potentially before 2026. This would allow them to compete in the premium adventure segment.
Vertical Integration and Supply Chain Resilience:
TVS has revealed plans to start local production of EV battery cells. This is a highly strategic move aimed at strengthening their supply chain, reducing reliance on external suppliers (like the current magnet issue with China), and improving localization. Localized battery production is crucial for long-term sustainability and cost efficiency.
Diversification into Electric Three-Wheelers:
Similar to Bajaj, TVS is also actively expanding its presence in the electric three-wheeler segment. In June 2025, TVS partnered with Kadam Mobility to deploy 500 electric three-wheelers (TVS King EV MAX) by FY26. This diversification strengthens their overall EV portfolio and revenue streams. The TVS King EV MAX offers a superior range of 179 km and fast-charging capabilities.
Addressing Supply Chain Challenges:
TVS Motor Company is also facing the rare earth magnet shortage and is expected to scale down production to cope with the scarcity. A TVS spokesperson acknowledged that “The disruptions in the EV supply chain, particularly concerning magnet availability, continue to pose challenges in the short to medium term. We are working actively to mitigate the prevailing challenges.”
Future Outlook for TVS:
TVS is well-positioned for continued leadership in the electric two-wheeler market due to its successful iQube, aggressive expansion of its EV portfolio (including potential new scooter and motorcycle models), and strategic move towards local battery cell production. Their strong existing dealer network and brand trust provide a significant advantage. The ability to effectively navigate the current rare earth magnet shortage and secure a stable supply chain will be paramount for sustaining their rapid growth trajectory.
The Broader Landscape and Competitive Dynamics:
The competition between Bajaj, Ather, TVS, and other players like Ola Electric and Hero MotoCorp (Vida) is intensifying. Here are some overarching themes:
Shift in Market Leadership: The market is witnessing a clear shift, with traditional manufacturers like TVS and Bajaj now leading the charge, capturing nearly half of the market, while EV startups like Ola Electric are facing declining sales and market share. This indicates a growing consumer preference for established brands with robust networks and service capabilities.
Affordability vs. Premium: Companies are now catering to both ends of the spectrum. Bajaj’s Chetak 3001 and Ather’s upcoming EL platform aim for affordability, while the premium variants of Chetak, iQube, and Ather’s 450X/Apex continue to target discerning customers.
Beyond Scooters: All three players are looking beyond just electric scooters. Bajaj and TVS are strong in electric three-wheelers, and TVS is exploring electric motorcycles, indicating a broader electrification strategy across segments.
Supply Chain Vulnerabilities: The rare earth magnet shortage highlights a critical vulnerability in the global EV supply chain, particularly for India’s dependence on China. This will push manufacturers to invest more in localized sourcing, alternative materials, and diversification of suppliers.
Software and Connectivity: Ather has led the way with its AtherStack, but Bajaj and TVS are rapidly catching up with their own connected features, larger displays, and OTA updates. Software will continue to be a key differentiator in terms of user experience and feature upgrades.
Charging Infrastructure: While companies are building their own fast-charging networks (like Ather Grid), the overall expansion of public charging infrastructure by various players and the government will be crucial for accelerating EV adoption across India.
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Conclusion
, Bajaj, Ather, and TVS are all poised for significant growth in the Indian EV market. Their strategies, while distinct, share common themes of product diversification, technological advancement, and a focus on expanding their reach and service capabilities. The immediate challenge of the rare earth magnet shortage will test their supply chain resilience, but their long-term investments and strategic pivots indicate a determined push towards dominating India’s electric mobility future.
FAQs
Q1: What is the current state of the Indian electric two-wheeler (E2W) market?
A1: The Indian E2W market is experiencing rapid growth and a significant reshuffle. Traditional manufacturers like TVS and Bajaj are gaining substantial market share, often surpassing EV-only startups like Ola Electric. Overall E2W sales in June 2025 reached over 1 lakh units, showing strong year-on-year growth.
Q2: What is the “rare earth magnet shortage,” and how is it affecting EV production in India?
A2: Rare earth magnets, specifically neodymium-iron-boron (NdFeB) magnets, are crucial components in Permanent Magnet Synchronous Motors (PMSMs) used in many EVs. China, a major supplier, has tightened export controls and caused shipment delays since April 2025. This shortage is impacting Indian EV manufacturers, including Bajaj and Ather, leading to potential production cuts in July 2025.
Q3: How are Indian manufacturers planning to mitigate the rare earth magnet shortage?
A3: Manufacturers are exploring various strategies, including developing alternative magnet-free motor technologies, diversifying their supply chains to include non-Chinese suppliers (e.g., Vietnam, Indonesia, Japan, Australia, US), and potentially importing fully assembled motors from China. Some are also looking into localized battery cell production for better vertical integration.
Q4: Are electric two-wheelers in India becoming more affordable?
A4: Yes, there’s a growing trend towards more affordable electric scooters. Manufacturers are introducing new variants with competitive pricing, and some are developing entirely new cost-effective platforms. For example, Bajaj launched the Chetak 3001 at a sub-₹1 lakh price point, and Ather is developing its “EL” platform for more affordable models.
Q5: What are the key advantages of buying an electric two-wheeler in India?
A5: Advantages include lower running costs (electricity is cheaper than petrol), reduced maintenance due to fewer moving parts, quieter and smoother ride, zero tailpipe emissions (beneficial for environment and potential urban restrictions), and various government subsidies/incentives.
FAQs: Bajaj Auto (Chetak Electric Scooter)
Q1: What is Bajaj Auto’s current position in the electric two-wheeler market?
A1: Bajaj Auto has become a leading player in the E2W segment. In June 2025, Bajaj sold over 23,000 Chetak units, achieving a 21.8% market share, a significant jump from the previous year. They are often in a neck-and-neck race for the top spot with TVS.
Q2: Which is the most affordable Bajaj Chetak variant currently available?
A2: Bajaj recently launched the Chetak 3001 in June 2025, which is its most affordable Chetak model, priced at ₹99,990 (ex-showroom).
Q3: What are the key features and range of the Bajaj Chetak 3001?
A3: The Chetak 3001 features a 3.0 kWh floorboard-mounted battery, offers a claimed riding range of 127 km, and has a large 35-litre under-seat storage. It comes with a 750W charger and can charge from 0 to 80% in about 4 hours.
Q4: Is Bajaj investing heavily in its EV business?
A4: Yes, Bajaj Auto is significantly investing in its EV business. Approximately 60% (around ₹700 crore) of their FY26 (Fiscal Year 2025-26) capital expenditure is earmarked for EV research, development, and new product launches.
Q5: Is Bajaj’s EV business profitable?
A5: Yes, Bajaj Auto’s EV business has recently turned profitable. This profitability is largely driven by the strong performance and scale-up of their electric three-wheeler segment (under the “GoGo” brand), which is also a market leader.
Q6: How is the rare earth magnet shortage impacting Bajaj’s Chetak production?
A6: Bajaj Auto is facing a significant impact and has planned to halve its Chetak production in July 2025 due to the shortage of rare earth magnets. They are actively working on finding alternative solutions.
Q7: Is Bajaj launching any other electric vehicles soon?
A7: Yes, Bajaj is launching a new electric rickshaw under its ‘GoGo’ brand in July 2025, further strengthening its presence in the electric three-wheeler commercial segment.
FAQs: Ather Energy
Q1: What is Ather Energy’s current market standing?
A1: Ather Energy holds a significant position in the Indian E2W market. In June 2025, Ather sold over 14,500 units, increasing its market share to 13.8%. This growth is significantly driven by the success of its family-oriented Rizta scooter.
Q2: What is the Ather Rizta, and why is it important for Ather?
A2: The Ather Rizta, launched in April 2024, is Ather’s first family-oriented electric scooter. It’s crucial for Ather as it allows them to target a much larger, more practical-minded segment of the market, moving beyond their initial focus on performance scooters.
Q3: Has Ather introduced any new Rizta variants recently?
A3: Yes, Ather launched the Rizta S 3.7kWh variant in July 2025. This new variant offers a larger 3.7 kWh battery for an IDC range of 159 km, while featuring a 7-inch DeepView LCD (instead of a TFT touchscreen) to make it more affordable. Its ex-showroom price is ₹1.37 lakh.
Q4: What is “AtherStack,” and what are its latest updates?
A4: AtherStack is Ather’s proprietary software platform for its scooters. AtherStack 6, introduced in January 2025, brought features like Google Maps and Alexa integration. Ather is set to unveil AtherStack 7.0 at its Community Day in August 2025, promising further enhancements.
Q5: What is the “EL” platform that Ather is developing?
A5: “EL” is an all-new, more affordable electric scooter platform that Ather plans to unveil at its Community Day in August 2025. This platform is designed to be versatile and cost-effective, enabling Ather to launch a wider range of scooters, potentially including models priced significantly lower, to compete in the mass market.
Q6: How extensive is the Ather Grid charging network?
A6: Ather continues to expand its fast-charging network, Ather Grid, which now boasts over 3,900 locations across India, providing a significant advantage for Ather users.
Q7: How is the rare earth magnet shortage impacting Ather’s production?
A7: Ather Energy is also affected by the rare earth magnet shortage and plans to reduce its e-scooter production by 8-10% in July 2025 due to supply constraints.
FAQs: TVS Motor Company (iQube Electric Scooter)
Q1: What is TVS Motor Company’s current market standing in the E2W segment?
A1: TVS Motor Company is a market leader in the Indian E2W segment. In June 2025, TVS sold over 25,000 iQube units, securing a leading 24% market share. They have consistently topped monthly retail sales for the last three months (April, May, June 2025).
Q2: What are the battery and pricing options for the 2025 TVS iQube?
A2: The 2025 TVS iQube lineup offers battery packs in 2.2kWh, 3.5kWh, and 5.3kWh options. TVS recently slashed prices by up to ₹26,000. For example, the TVS iQube 2.2kWh is priced at ₹94,434 (ex-showroom Delhi).
Q3: What is the claimed range of the top-end TVS iQube ST variant?
A3: The top-end iQube ST with the larger 5.3kWh battery offers a claimed range of 212 km.
Q4: Is TVS planning to launch new electric two-wheelers soon?
A4: Yes, TVS has confirmed that new electric two-wheelers are in the final stages of development and are expected to launch between July and September 2025. They are also developing the TVS RTX 300, an electric adventure bike, hinting at entry into the electric motorcycle segment.
Q5: What strategic move is TVS making regarding battery production?
A5: TVS has announced plans to start local production of EV battery cells. This is a crucial move for vertical integration, strengthening their supply chain, and reducing reliance on external suppliers.
Q6: Is TVS also involved in the electric three-wheeler market?
A6: Yes, TVS is actively expanding its presence in the electric three-wheeler segment. In June 2025, TVS partnered with Kadam Mobility to deploy 500 units of the TVS King EV MAX electric three-wheelers by FY26.
Q7: How is the rare earth magnet shortage affecting TVS’s production?
A7: TVS Motor Company is also impacted by the rare earth magnet shortage and is expected to scale down production to manage the scarcity. They are actively working on mitigation strategies.
