As competition heats up in the domestic electric two-wheeler segment, the two legacy players are expanding rapidly. However, FY26 retail data shows that while Bajaj Auto continues to grow, it has not been able to match the blistering acceleration of TVS Motor Company.
The gap between the two has widened sharply over the past year. TVS’s lead in volumes surged to 52,347 units in FY26, up from just 6,369 units in FY25. This reflects not only stronger demand for TVS products but also differences in competitive strategy.
In FY26, TVS recorded retail sales of 3,41,740 units, significantly ahead of Bajaj Auto’s 2,89,393 units. A year earlier, the two were nearly neck-and-neck, with TVS at 2,37,944 units and Bajaj close behind at 2,31,170 units.
According to sector experts, Bajaj’s slow growth stems from production disruptions, a pending subsidy halt, a limited product portfolio and distribution network, and delays in rolling out Battery-as-a-Service (BaaS) offerings, which have constrained its reach in a rapidly expanding electric two-wheeler market.
Bajaj was one of the first to be impacted when China imposed an export ban on magnets, causing supply chain disruptions and production halts. The company also faced a subsidy delay of over ₹75 crore in its largest market, Maharashtra.
Supply Chain Woes
Apart from these challenges, industry experts say TVS has moved quickly to understand the evolving market and bring a range of offerings to customers, while Bajaj has largely relied on its legacy approach. Both companies entered the segment around 2020—Bajaj with the revived Chetak and TVS with the iQube—but their strategies have diverged significantly since.
Bajaj has focused largely on a single-product strategy centered on the Chetak, offering periodic upgrades in battery range, features, and variants. Its current lineup—Series 25, 30, and 35, representing 2.5 kWh, 3.0 kWh, and 3.5 kWh batteries—has helped preserve premium positioning and brand recall. However, this limited portfolio has constrained Bajaj’s ability to address diverse consumer preferences in a market increasingly segmented by price, performance, and design.
In contrast, TVS has pursued a broader portfolio strategy with models such as the iQube, X, and Orbitor, offering variety in design, features, and price points, enabling it to capture a wider customer base.
“Scale in the electric two-wheeler market is increasingly being driven by portfolio width rather than reliance on a single product,” said an industry analyst. “TVS has adapted quickly, while Bajaj has taken a more calibrated, brand-led approach.”
Execution Gaps
Distribution execution has further amplified the gap. TVS has leveraged its extensive dealership network to enhance reach and product availability. Bajaj, meanwhile, continues to retail the Chetak through exclusive experience centers, expanding cautiously to maintain operational control.
Pricing innovation is another differentiator. TVS has introduced models such as Battery-as-a-Service (BaaS), lowering upfront costs and making EVs more accessible to price-sensitive buyers. Bajaj has been slower to adopt such mechanisms, potentially limiting its appeal in the mass-market segment.
Looking ahead, analysts suggest that Bajaj will need to accelerate product development and broaden its EV portfolio to regain momentum. For TVS, the challenge will be to sustain growth while protecting margins, as competition intensifies from new-age players like Ather Energy and legacy rivals such as Hero MotoCorp’s Vida, both of which are rapidly scaling up.
