Bajaj Auto has clearly separated itself from the traditional Indian two-wheeler playbook. It is no longer a volume-chasing domestic OEM. Instead, it has evolved into a globally integrated, margin-led mobility company, with strong exposure to premium motorcycles, exports, alternative fuels, and electric mobility.
Three moves define this phase:
- full operational control of KTM,
- category creation with the world’s first CNG motorcycle, and
- a calibrated but profitable EV strategy anchored by Chetak.
This SWOT analysis reflects Bajaj Auto’s true strategic position in 2026, based on ownership changes, financial performance, and product execution.
Company overview
| Aspect | Details |
| Company | Bajaj Auto |
| Founded | 1945 |
| Headquarters | Pune, Maharashtra, India |
| Core businesses | Motorcycles, three-wheelers, EVs |
| Premium partners | KTM, Triumph Motorcycles |
| EV brand | Chetak |
| Alternative fuel | CNG motorcycles |
| Global footprint | 70+ countries |
| Strategic focus | Margin-led growth, exports, premium & EV |
Strengths
Full control of KTM: from partner to owner
The KTM takeover is the most significant strategic shift. In November 2025, Bajaj Auto became the sole controlling shareholder of Pierer Bajaj AG, which holds ~75% of KTM AG.
2026 is officially positioned as the “Year of Turnaround” for KTM, with €800 million committed toward product refresh, cost rationalisation, and global network revival. This gives Bajaj:
- Full control over product strategy
- Direct access to KTM’s premium brand equity
- Stronger margin capture instead of shared economics
Record profitability and financial firepower
Bajaj Auto entered 2026 with:
- Best-ever quarterly revenue (~₹15,700 crore)
- EBITDA margin of 20.5%, among the highest in the global auto industry
- Surplus funds of ₹14,244 crore, creating a powerful internal war chest
This financial strength allows Bajaj to fund EVs, KTM restructuring, and new categories without balance-sheet stress.
Dominant premium motorcycle ecosystem
The KTM–Triumph duo has emerged as a margin engine. Combined sales surged ~70% in late 2025, with models like the Thruxton 400 and Duke 160 expanding reach into high-margin mid-capacity segments.
This positions Bajaj as the manufacturing and engineering backbone of global mid-capacity motorcycles.
The CNG revolution: Bajaj Freedom 125
The Bajaj Freedom 125, the world’s first CNG motorcycle, has shifted from novelty to volume driver in 2026. With up to 50% lower running costs versus petrol, it has created a new commuter sub-category for cost-conscious riders.
This is a classic Bajaj move engineering-led category creation, not price wars.
Export recovery and global resilience
Exports have crossed 200,000 units per month for the first time in three years. Export revenues grew 35% YoY, driven by recovery in Africa and Latin America, reinforcing Bajaj’s long-standing export moat.
Captive finance flywheel
Bajaj Auto Credit (BACL) has quietly become a value compounding engine:
- AUM of ~₹14,000 crore
- ~40% penetration in Bajaj’s own sales
This significantly boosts group Return on Equity and customer stickiness.
Weaknesses
Rare-earth dependency exposed in EVs
Supply disruptions in 2025 revealed a vulnerability in EV motor sourcing. Bajaj had to re-homologate electric motors to reduce reliance on specific rare-earth magnets. While mitigated, EV supply chains remain more fragile than ICE.
Reduced presence in ultra-low commuter segment
Bajaj has intentionally pulled back from the 100–110cc pure commuter space, where Hero and TVS dominate. This caps domestic market share even as margins improve.
Complexity of multi-front execution
Simultaneously managing:
- KTM’s European turnaround
- EV scale-up
- CNG portfolio expansion
…increases execution complexity and management bandwidth risk.
Opportunities
First-mover advantage in CNG motorcycles
The Freedom platform is expected to expand into additional CNG variants (100cc / 150cc). Bajaj currently enjoys a near-monopoly in CNG two-wheelers—a powerful moat if adoption accelerates.
Chetak’s next-gen EV push
Despite earlier supply challenges, Chetak regained EV leadership by Oct 2025. A next-gen, higher-performance Chetak lineup (Jan 2026) positions Bajaj to defend and expand share in the premium electric scooter segment.
E-rickshaw expansion: “Riki”
Bajaj’s entry into e-rickshaws with the Riki brand opens access to a massive urban last-mile mobility market. A nationwide rollout in 2026 could unlock a new volume and fleet-driven revenue stream.
Deeper monetisation of KTM & Triumph platforms
With full control of KTM and strong Triumph momentum, Bajaj can:
- Localise platforms
- Improve cost structures
- Scale volumes across emerging markets
This could materially lift global margins.
Threats
KTM restructuring execution risk
While ownership is a strength, turning around KTM’s European operations is capital- and management-intensive. Any missteps could dilute returns or extend cash burn.
Aggressive EV competition
Players like Ola Electric and TVS continue to invest aggressively. Bajaj must sustain high R&D and marketing intensity to protect Chetak’s leadership.
Regulatory and fuel-transition uncertainty
Shifts in emission norms, fuel policies, or EV subsidies can impact both ICE and EV strategies.
Commodity and currency volatility
Steel, aluminium, and forex movements remain risks given Bajaj’s export-heavy model.
Bajaj Auto 2026: key financial Overview
| Metric | Q2 FY26 Status | Strategic Meaning |
| Revenue from operations | ₹15,735 crore (+19% YoY) | All-time high |
| EBITDA margin | 20.5% | Industry-leading |
| Export revenue growth | +35% YoY | Global recovery |
| Surplus funds | ₹14,244 crore | Investment war chest |
| Finance arm AUM | ~₹14,000 crore | ROE enhancer |
What this SWOT reveals about Bajaj Auto
Bajaj Auto’s defining edge in 2026 is strategic control with financial discipline. It owns its premium destiny (KTM), creates new categories (CNG), and enters EVs selectively—without chasing loss-making scale.
The key risk is execution complexity, not demand or capital.
Future outlook
Bajaj Auto is positioned to remain one of India’s most profitable automotive companies, not by dominating volumes, but by owning margins, technology, and global platforms.
If the KTM turnaround succeeds, the CNG portfolio scales, and Chetak’s next generation lands well, Bajaj could define a new model of Indian auto globalisation—engineering-led, cash-rich, and category-creating.
In conclusion, Bajaj Auto in 2026 is no longer just an Indian OEM. It is a globally relevant mobility strategist, playing on control, cash, and courage rather than crowd-following.