Bajaj Auto has reported significant progress in its electric vehicle (EV) business, with improved margins and increased contribution to domestic revenue. The company has also made a strategic move in its international holdings, signaling continued growth and expansion.

EV Business Performance

Bajaj Auto's EV segment has shown remarkable growth, eliminating negative margins by the end of FY25. The company's focus on electric vehicles has paid off, with EVs now contributing a substantial 25% to domestic revenue. This shift towards electrification aligns with the global trend towards sustainable transportation and indicates Bajaj Auto's commitment to future mobility solutions.

Financial Highlights

Bajaj Auto achieved a robust 20.00% EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin in the last three quarters of FY25, demonstrating strong operational efficiency and profitability.

March 2025 sales saw an impressive 93.00% year-over-year growth, partly attributed to the timing of Gudi Padwa, a festival that typically boosts vehicle sales.

Product Innovation

The company is set to launch a new Chetak model on the 3S platform, which is expected to enhance cost savings and contribute to margin growth. This move showcases Bajaj Auto's continued investment in research and development to stay competitive in the rapidly evolving EV market.

International Investment

In a significant development, Bajaj Auto International Holdings BV (BAIH BV), a wholly-owned subsidiary of Bajaj Auto Limited, has subscribed to Convertible Bonds worth €50 million (approximately ₹468.70 crore) issued by Pierer Bajaj AG (PBAG) on April 3, 2025. This strategic investment is aimed at supporting the funding needs of PIERER Mobility AG's subsidiary, KTM AG, for the phased resumption of KTM motorcycle production and operating costs.

Key details of the transaction include:

This move strengthens Bajaj Auto's position in the international motorcycle market, as BAIH BV already holds a 49.90% stake in PBAG, which in turn owns 74.94% of PIERER Mobility AG, the parent company of KTM AG.

Outlook

With the strong performance of its EV business, improved margins, and strategic international investments, Bajaj Auto appears well-positioned for continued growth in both domestic and global markets. The company's focus on electric vehicles and its involvement in premium motorcycle brands like KTM, GASGAS, and Husqvarna through its international holdings demonstrate a balanced approach to future mobility trends and market diversification.

Bajaj Auto Limited , one of India's leading two-wheeler and three-wheeler manufacturers, has announced a significant investment through its subsidiary. Bajaj Auto International Holdings BV (BAIH BV), a wholly-owned subsidiary of Bajaj Auto, has subscribed to €50 million worth of convertible bonds issued by Pierer Bajaj AG (PBAG).

Investment Details

The transaction, which took place on April 3, 2025, involves BAIH BV subscribing to 500 convertible bonds with a nominal value of €100,000 each. This investment is equivalent to approximately ₹468.70 crore, based on an assumed exchange rate of 1 Euro = ₹93.74.

Purpose of the Investment

The primary purpose of this investment is to facilitate the funding needs of PIERER Mobility AG's (PMAG) subsidiary, KTM AG. The funds will be used for:

1. Phased resumption of KTM motorcycles production
2. Operating costs of KTM AG

It's worth noting that PMAG is the holding company of KTM AG, Europe's leading manufacturer of powered two-wheelers, producing premium brands including KTM, GASGAS, and Husqvarna Motorcycles.

Ownership Structure

To better understand the significance of this investment, it's important to look at the ownership structure:

• BAIH BV is a wholly-owned subsidiary of Bajaj Auto Limited
• BAIH BV holds a 49.9% stake in PBAG
• PBAG holds a 74.94% stake in PMAG

Terms of the Convertible Bonds

The convertible bonds come with the following key terms:

• Conversion Period: June 1, 2025, to February 29, 2028
• Maturity Date: March 31, 2028
• Redemption: At principal amount if not previously redeemed, converted, or repurchased and cancelled

Regulatory Compliance

The transaction was approved by the Audit Committee of Bajaj Auto Limited and reported to the stock exchanges as per the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. This reporting is necessary due to the material value of the transaction involving a subsidiary of the company.

March 2025 Sales Performance

In addition to this strategic investment, Bajaj Auto has also released its sales figures for March 2025:

The company's total sales for March 2025 showed a modest 1% increase compared to the same month in the previous year, with notable growth in commercial vehicle exports.

This strategic investment in PBAG's convertible bonds, coupled with steady sales performance, underscores Bajaj Auto's commitment to strengthening its position in the global two-wheeler market and supporting its European operations.