Get Annual plan at only Rs 289. Citi said it does not think electric vehicles (EVs) will contribute much to Bajaj Auto's volumes or profits over the medium term and added it awaits technical details, in addition to the final price
Shares of Bajaj Auto slipped about a percent on the BSE in early trade on October 17 after Citi maintained its 'sell' recommendation on the counter.
The global financial firm has set a target price of Rs 2,100 on the stock and comes in the backdrop of Bajaj Auto making a comeback in the scooter segment with the launch of an all-electric Chetak, the brand that made it India's biggest two-wheeler company.
Designed on the lines of the original Chetak, the popular geared scooter of the 1960s and 70s, the battery-powered scooter has been designed and developed in-house by Bajaj Auto.
The unveiling of Chetak could push competitors to launch electric two-wheelers sooner than planned.
Citi said it does not think electric vehicles (EVs) will contribute much to Bajaj Auto's volumes or profits over the medium term and added it awaits technical details, in addition to the final price.
The price of Chetak will be announced at the time of its commercial launch in January, 2020, but Rajiv Bajaj, MD, Bajaj Auto, said the scooter will be priced attractively.
The financial firm did recognise Bajaj's brand image and said its dealer network and superior quality could give it an edge.
Shares of Bajaj Auto traded 0.60 percent lower at Rs 3,002.85 on BSE around 1025 hours IST.The Great Diwali Discount!Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
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