Bajaj Auto will be setting up a separate wholly owned subsidiary that will cater to electric vehicles. In a statement, the company informed Bombay Stock Exchange that the board of directors have approved incorporation of a wholly owned subsidiary at the meeting held recently.
The statement mentioned that the wholly owned subsidiary will leverage the growth opportunities in the evolving mobility space and will help the company venture into the manufacturing of electric and hybrid vehicles in the two, three and four wheelers category.
The name of the entity is being finalised and is subject to approval with the Ministry of Corporate Affairs. The subsidiary is likely to have a proposed authorized capital of Rs 100 crore
Recently, the central and state governments have announced a lot of tax benefits for EVs. The company currently sells Chetak scooter and has announced the launch of electric three wheelers and quadricycles in 2021-2022. Alternatively, Bajaj Auto’s premium bike brand KTM is also working on a range of electric motorcycles, which may be introduced in India.