Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question, may press “*” and “1” on their touchtone telephone. If you wish to remove yourself from the question queue, you may press “*” and “2”. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question is from the line of Chandramouli Muthiah from Goldman Sachs. Please go ahead.

Hi, good evening and thank you for taking my questions. My first question is related to Freedom 125. Congratulations on your efforts in building that franchise. You mentioned that you've had a lot of discussions with your customers trying to understand their experience. So just specific to the CNG network, I think we have about 10,000 CNG pumps in India at this stage. What is the average wait period to refuel that most of your customers currently have and related to some of the efforts that you're ma king with some of the CNG network partners, what sort of the feedback you have in terms of how much that wait period could come down over time?

So, because we have retai led about 10,000 Freedoms, obviously, we've gone and met a whole lot of customers and also our teams stood at the pump s. Let me tell you, the wait period is probably in minutes or seconds. The support for this innovation has even surprised us. Of course, we have had a very strong engagement process with the 14 gas distribution companies, with the Ministry of Petroleum and Natural Gas and with the Gas Authority of India at the senior most levels and also at their operating level s. And they have recognized the potential in th is whole initiative for their business and I'm actually worried that they've gone out of their way and people are not having to wait at all. So, a Freedom 125 o wner gets a VIP support into the filling, b ut we'll, of course , get an eye on the scaleup. So obviously this will not be possible to do when things really scale up. But as things scale up, we've been in discussion and these companies are watching very carefully. And I don't think they will shy away from putting in more di spensing stations and ensuring that the 2-wheeler CNG customer doesn't require to wait. The filling itself takes only less than a minute, a couple of minutes.

Got it. That's helpful. My second question is related to some information y ou have shared on electric three wheelers. So, you mentioned that now it's available in 700 locations. So, I just wanted to understand if you were to contrast the number of locations where the ICE 3 -wheeler is available versus the number of locations where the electric 3-wheelers available. What is the incremental network related growth potential on the electric 3-wheeler business, considering that there is 35% market share in electric 3-wheeler versus 78% in I CE 3-wheeler, just trying to understand what the network gap there is and how that gets bridged over time?

Well, as things stand, we have reached the 700 number in the opening days of October. The numeric reach is around 1,000 stores, 1,100 stores for 3-wheelers, but the weighted reach I would say with these 700 stores, we are covering almost 90%, 95% of the industry. So, it's not linear because now there is a long tail. And our major task is accomplished with these 700 stores. Now it will just grow organically.

Got it. That's helpful. Just a housekeeping question. Lastly, could you just share what the spares number was for the quarter, please?

The spares revenue for the quarter was about INR1,500 crores.

Got it. Thank you very much and all the best.

Thank you. The next question is from the line of Binay Singh from Morgan Stanley. Please go ahead.

Hi Team. Thanks for the opportunity and thanks for the very detailed remark. I'll actually focus on raw material to sales. When we look at that line item, it has gone up by around 130 basi s points quarter-over-quarter. In the commentary, you added that commodity net of pricing was a 25-basis hit. Is it fair to assume that the remaining 100 basis points came largely because of electric 2-wheeler?

Yes, that's right. The largest drag for the quarter was the expansion of Chetak. And very slightly, I'd say the filling in the 30,000 odd units that we put out of Freedom, b ut yes the bulk of it, let me ascribe it to Chetak expansion.

No change on that front, Binay. I think the only piece is that in June we put in place the affordable Chetak variant which currently sells between INR96,000 and INR100,000 across states. The PLI approval for that came in the course of the quarter. So, there's a time-phase impact of that, b ut from a recognition standpoint, no change in the policy.

And these number you said 9,600, is for the quarter for the entry-level Chetak?

No. I said we had introduced the affordable Chetak variant, which is priced at INR96,000 or INR100,000 across different states, as we call it which is the Chetak 2901 or 2903 that was launched in June. The PLI approval for that, the certification for that came in only in the midst of quarter 2. And therefore, we have started accounting for PLI or accruing for PLI only after receiving that certification. In terms of policy of how we accrue for PLI, no difference between quarter 1 and quarter 2.

And just last two questions again linked to this only. When we say flat marg ins in the EV portfolio which basically means 0% EBITDA margin. So that commentary of flat is basically at the EBITDA level for EV. And lastly, just like we've s een a very good scale up in EV a nd in fact as we launch more variants that will accelerate. So, when you're guiding for flat margins, we are kind of accounting for the potential because that's basically the one part of the portfolio which is margin dilutive today. So, you are in a way accounting for acceleration in EV in your guidance of maintaining margins?

Let me explain. I think you've got it, but for the benefit in case it needs to be clarified. I did make a mention that when you look at the electric portfolio, scooters plus three-wheelers put together we are EBITDA flat in absolute terms a nd therefore, you can assume absolutely margin flat because fundamentally the scale -up of the electric 3 -wheelers is offsetting the drag of Chetak. So that’s one part. So therefore, the cash burn on the electric portfolio is now flat. There is no cash burn because the two are offsetting. However, in terms of the impact on margins because the enterprise operates at 20 and the electric portfolio is flat there is a drag effect of that and therefore this should have reflected in the gross margin impact. What I did say in the last comment was that it is like every other company would want, it is an attempt to continue to dynamically manage this P&L, but we'll have to continue to make investments for competitiveness and much of those investments would come on electric scooters and Freedom de pending on how the commodity and the competitive context evolves, b ut the intention is to try and continue to dynamically manage the business for margin.

Perfect. So that is very clear. Thanks a lot Dinesh. Thanks.

Thank you. The next question is from the line of Kapil Singh from Nomura. Please go ahead.

The like-for-like comparison with the same days last year and this year till Dussehra, it is bit muted and less than what was the expectation. The motorcycle industry is almost flattish, 1% to 2% growth only. We had thought that it would be upwards of 5%, 6%. We got some indication of this, though Pitra Paksha period is low, but it was much lower than our expec tations. So, we had entered this period a little bit, sort of watchful. And if this has to be deconstructed into segments, while the industry in the 100cc segment is in negative, it is marginally positive in the 125cc plus segment. We have declined faster than the industry in the 100cc segment. It's become a little bit of a red ocean there. I'm sure you would have monitored the discounts of up to INR5,000 to INR6,000, INR7,000 on a bike, which is ESRP of INR65, 000. So, you can well imagine what is happening out there. But we are moving faster than the industry in the top half. But beyond this, I must say to you that we should not draw the full seasons conclusions as yet. The places like Uttar Pradesh and all are doing extremely well, but Northeast, some states of the South, which are actually non festive states, they're not doing so well. And I've seen in the past that the last two weeks, the final overs can swing the festive substantially. So, we are waiting for the entire festive to get over and for it to settle and then see how things happen. I don't think we'll reach 8%, 9% growth. I wouldn't be surprised. But I hope that we should be there at 3% to 5% growth as an industry.

Thanks sir, very helpf ul. We look forward to the slog over. Another one is on Chetak. If you could talk about, the volumes for Chetak have increased and you're scaling up there, but you have also come out with new variants. And most of the players also talk about falling batter y costs. So, in that context, how have the margins directionally moved for Chetak. I know you don't share the number, but at least directionally, how are they moving? And if you could qualify when you're talking about your flat EBITDA for EV, do you account for the PLI because you've got PLI only for half the quarter for two wheelers?

I'll take the last piece. When I did make a mention of the EBITDA for the electric portfolio being flat in absolute terms, we have accounted for the PLI. Of the three variants of Chetak that we have in the market, you know that we've got a variant at INR135,000, another one at INR115,000 and the affordable variant that we launched in June ranging between INR96,000 to INR100,000. Of the three of them, two of them were accounted for in terms of PLI for the full quarter because the certification for that had come in much earlier. You recall I had made mention of that in the last quarter's call as well. It is only for the third variant that we had launched in June th at the certification had come in the midst of the current quarter, and so only after it came we had accounted for it, right. So different positions on the former two, which were already in existence and a mid-quarter accounting and accrual for the third one that was launched in June. But yes, to your point, does Chetak PLI and 3 -wheeler PLI form part of the electric EBITDA that have cued to be flattish, the answer to that is yes. Have margins improved for Chetak progressively over time? Yes, you'll recall that we had spoken about very significant streams of work that have been put into place on R&D and fundamentally tech. Those obviously have borne fruition. So, if I not only comment on quarter -on-quarter, but essentially over a 4 -quarter horizon, I fundamentally say much of the expansion of Chetak that you have seen has been funded largely out of the cost reduction effort, which is the reason why we've been able to grow the portfolio from 20,000 units last year to 70 ,000 right now without a drag coming in on the overall enterprise margin.

Sir, what would be your breakeven level for this business in volume terms?

Well, the breakeven, I'm getting your question is on Chetak alone. So, two parts to what drives breakeven, right, pricing and cost. And as you heard Rakesh saying that there is a new platform that is in the offering that will significantly reduce costs over and above the cost reduction efforts that we've already seen. So, I can see line of sight on further cost reduction playing out between quarter 3 and essentially quarter 4 as the new platform comes into play. What I'm not clear about is where will market pricing settle. And you have seen, and you are aware of the exten t of discounting that is prevalent in the market , right. So, I can tell you that we will certainly get better on cost structures with the new platform on Chetak that comes out later this quarter. But where pricing settles and how much of that, will get off set by the price table moving down or by discount in the market will determine the path to profitability in the future because our intention is to remain very competitive. It isn't as much about fixed cost because as an OEM, we already have most of the facilities in place. We don't have to spend substantial amounts of money burning fixed costs in many ways. So, the biggest driver of profitability on this is not really going to come out of operating leverage for us as much as it is between the cost and price equation.

And I can assume initially, your focus will be more on leadership?

Yes, of course. Even last year when our market share was in single digits, we were saying that over a period of time, we are aspiring to be absolutely for the leadership position in both e-autos and e-2-wheelers.

Ok Sir. Thank you so much. Have a good evening.

The next question is from the line of Amyn Pirani from JPMorgan. Please go ahead.

Hi. Thanks for the opportunity. I had a question on emissio n regulation first and then maybe some clarifications on the result. In April 2025, we are supposed to have the next phase of OBD norm, if I'm not wrong. So just wanted to get a sense from you, is there any cost call out or any significant inflation that we should be watching out for two wheelers?

I was just asking that, should it be in line with what happened when the OBD-1 came in? Or can it be lower than that as well?

I don't recall exactly the numbers, but it will be in the same vicinity.

Okay. Thanks for that. Secondly, on the festive demand trends that you mentioned, even if we get to, say, 3% to 5%, which you expect, is it something that we should think about for the rest of the year and going into next year ? Or is it just you're saying a festive blip because last year festive we saw a surge? Or is this the growth you are seeing going forward for the industry?

I would say that the industry was thinking that we should be in the zone of 5% to 8% but we'd probably be closer to 5% than 8%.

Okay. That's helpful. And lastly, on Brazil, if I'm right, I think till 20,000 which you are right now, I think the requirements for localization are lower. And since you are now planning to go to 35,000, are there any measures for localization? Or do you already have tie -ups for localization, which are being done there?

Yes. So, there is a different set of requirements beyond 20,000 and that work has already been commenced. In fact, most of the equipment is in place, but some of the capital i nfusion, which will take place for some balancing equipment. But the engagement with the vendor has already commenced, it's a lead time of about 7, 8 months. We should be able to wrap this up by middle of next year, certainly by August of next year when the capacity will go up to 35,000.

Okay. And last one, if I can just squeeze in 1 more. The KTM or that entity loss that you have accounted for. Now obviously, I'm getting that there are few one-offs here in terms of the bicycle business. But it's a large loss, even if we spread over 2 quarters. How should we think about this? Is the business improving incrementally? Or should we expect more pain going forw ard for the next few quarters?

So, I think, at this point of time, we would be guided by, obviously, the statements that PMAG has put out because they are bound by their regulatory requirements of listing and informatio n access. So, the guidance statement that they have put out essentially, I think is on 26th of August is really what would hold. So, at this point of time, I'd like to keep it at that and not for anything because we just have to stay true to that process. But any development on business and clearly many moving parts of that is best announced and the progress of it, commented upon by them.

Thank you. The next question is from the line of Jinesh Gandhi from A mbit Capital. Please go ahead.

Hi Sir. My question is on Freedom CNG. So, any initial sense on the customer profile which we have, are these customers who have evaluated Freedom 125 against 100cc motorcycle or is this creating a new segment of customers ? What is the f eedback you're having on the customer perception of Freedom?

We have understood that the spectrum of customers who have bought Freedom 125 is very, very wide. The largest cohort is from the 125cc segment itself, but the largest itself is only 15%, 20% or 18%. The source of business, is even from 150cc, from scooters, from 100cc entry-level, and 110 cc. So, it's very, very wide and which, in a way, is very interesting and encouraging for us because it is telling us that the sources of business cut across the conventional segments.

Okay. That's very interesting. We are also seeing customers from 150cc and scooters as well, that's interesting. Secondly, in last call, we had mentioned PLI would have contributed about 50 basis points benefit at stand-alone level. But given that we have seen increase in share of EVs and more products being qualified in 2Q versus 1Q. Would these 50 basis points be materially higher in 2Q now?

So yes, I'm not going to go into the reconciliation of Chetak Financials because obviously, there's an expansion impact, there is a mix impact, and there is a PLI impact and material cost. So many moving parts. I'd like to stick to the commentary I made that this quarter, we operate for a period of time on the third variant that we had launched without PLI. As soon as that certification came in the middle of the quarter, we accrued for it. For the rest of the accounting of PLI, the policy remains unchanged relative to what we have done in quarter 1. But I think PLI in isolation is only 1 part of the picture because you've got to see how we are managing multiple lines to be able to fund extension of the electric portfolio.

Sure sir. So that's very commendable that we are EBITDA breakeven now that's job well done. Two clarifications. One is at Pierer Mobility, any sense on what could be onetime loss on this for the restructuring expense? If you're aware of that.

Yes. So , I'm just calling out from their statement . I think they had called out extraordinary impairments and restructuring of EUR75 million in the first half.

Okay. That's a very nice number, okay. Got it. And secondly, you mentioned exports are 415 million or 450 million in 2Q?

I said exports was 450 million.

Okay. Got it. Thanks, and all the best.

Thank you. The next question is from the line of Pramod Kumar from UBS. Please go ahead.

My first question is on the Chetak network. You talked about the p roduct being available in 4,000 stores. So just wanted to get a context on that as to what's our total store count network - wide, and also where is Chetak as we stand today in terms of the network presence?

We have 250 odd exclusive Chetak st ores. And in addition to that right now, we are in about 3,000-odd stores, which are shared with motorcycle business, which are sub -dealers as well as main dealers and their branches. This 3,000 over a period of 3 months or 4 months will go up to 4,000. And obviously, the 250-odd stores are expected to expand because they drive the majority of the sales and more important establishing benchmarks of customer care and brand development is happening t hrough these exclusive stores . It gives us much better ability to discharge those functions.

And Rakesh, what your total network count right now for the traditional business?

So, the total network count for the motorcycle business would be about 5,000, which includes all the sub-dealers, main dealers and branches. And then separately, you obviously have KTM and three wheelers, etcetera.

So anyway, we have more runway for Chetak expansion beyond 4,000 as well as the demand kind of evolves in smaller markets?

Yes, exactly. It depends on how grassroot level demand is.

And sir, sticking with EVs. You talked about a new variant – is it a new variant or is it going to be a new model under the Chetak umbrella or a new variant under the Chetak umbrella? Because we've stuck with Chetak so far for the entire lineup. So, are you looking at a new sub -brand, which is different than Chetak with different positioning? Or how should one think about it?

By the way, we are not stuck with Chetak. It's a very conscious and deliberate decision and we consider it to be a very important asset. There are a lot of people who are coming to Chetak because they're very, very fond of the brand. So, Chetak is our umbrella brand for scooters. We will continue to have a portfolio of different models under the Chetak umbrella. And so, to that extent, the franchise of Chetak will grow. Chetak obviously started with one product, but the portfolio is being expanded. So, what you will see from middle of November onwards is I don't know how you perceive a variant or a model, but there will be a few new Chetak beginning mid-November to Jan.

No, because what I wanted to understand is like is it a new brand or a new sub-variant with a new design?

No, it will be Chetak in this similar styling, but with much better propositions.

Sounds good, sir. No, no, when you have a new design that brings more uniqueness and more footfalls in dealerships. That's the only reason why I ask that because you've seen that with guys like Ather who expanded the design language and volumes have expanded. So, I was just trying to probe on that. Second question on the financial side. Revenues have jumped quarter -on-quarter by 10%, exposure also done well. You've stepped up your efforts on campaigns and launches as well. So can you just explain in that context, why would be our other expenditure be marginally down quarter-on-quarter in absolute rupee terms and even employee expenses fall by 10%. Because if I recollect 1Q, when there was a sharp jump in QoQ, you said it was more like recurring kind of and t here was no one -off. So, if you can just help us understand these two cost structure movement quarter-on-quarter?

Sure, Pramod. Let's first talk other expenses. Look, I think the difference in other expenses is just so marginal that there is really nothing to call out because it spreads across very, very nominal numbers across multiple lines. So, the quarter-on-quarter impact, which is under INR10 crores, just take it as give or take, across multiple lines, none of which is worthy of call out. On a year- on-year basis, you're seeing a step -up. That step-up potentially is coming from three reasons. The first, because overall volume has moved up. So, coming in from all things to do with volume, right. Its volume-related expenses. The second is stepped -up investments behind marketing. The third essentially is on accounting for royalty that we have for Triumph, as Triumph as scaled up. So those a re the three factors which have accounted for the movements in the other expenses year-on-year. As for the employee cost, why is employee cost this quarter lower compared to the previous one. Fundamentally, a few reasons. One, last quarter had a leave encashment true-up that was done because the exercise was concluded then. Therefore, it was a one - off, which was trued up and the impact of which happened the last quarter. The second is that we've had a state of retirements that happened on 30th of June, which would have got accounted for the quarter. That number is not reflected in the current quarter because those people were in a sense not backfilled. The third was onetime expenses as you get to the start of the financial year. There are host of the onetime expenses that happen. This is really on welfare , on EDLI, on uniform, etcetera, which sat in quarter one. The last fourth one was a slight transfer of employees that we did to our R&D in technology subsidiary Chetak technology. That's, therefore, reflected in it. Essentially, these four factors which have led to the drop in the employee cost between quarter one and quarter two.

Sticking with just one more color on the financing arm, it's kind of shaping up quite well. If you can just help us understand what's the share of financing, what that entity had for Bajaj Auto vehicles which were financed? And also, what's the AUM split looking like in terms of what's the exposure outside of Bajaj Auto vehicles? And any plans that you have on the milestones on loan growth, AUM, or anything which you can share there, sir?

Quickly to give you a sense - very good progress, very much in line with plan, likely an acceleration of timelines on completing the national rollout, which will happen by quarter four. Exit September AUM was about INR4,000 crores. It has now acquired since the time it started about 250,000 accounts, but that number is poised to grow exponentially in the back half of the year as we complete the nati onal expansion. In terms of penetration, at this point of time, the penetration of captive financing, is in a sense about nearly, I'd say about 50% standing both the 2-wheeler and 3-wheeler business.

Thank you.

Thank you sir for the opportun ity. Festive greetings to you. Firstly, to Rakesh, sir, for Africa region, the quantum of fall has come down in Q2 , assuming the same run rate continues in Q3, would Africa turn positive on a Y-o-Y basis? Would that understanding be correct?

I'll have to check those numbers, but it might be mildly negative to mildly positive, if that run rate continues.

Got it sir. On the new products, in November, we have that Chetak more models coming in. Apart from that, for e-rickshaw or CNG three wheeler variants, any thoughts or time line you can share?

Well, like I said in the 2 -wheeler side, we are starting from mid -November onwards. We will also introduce a couple of new models between end of November and January in the 3 -wheeler portfolio also. This will be additive to the two which we have currently.

And on the CNG 2-wheeler side, sir?

In the CNG 2-wheeler side, the platform allows us to expand both into the 150cc and the 100cc zone, but for the moment, given the kind of requirements we have and the capacity and the supply and demand balance, we are focusing on the three models which we have, two of which have got rolled off, but the third one is just getting into the system. So, we'll focus on that and saturate the market with these three first.

Got it sir. On the NBFC entity, INR950 crores is the investment so far. Going forward, what would be the target investments by end of the year or by next year? Once you reach all India rollout, how do you see that share of financing for the NBFC?

I mentioned this the last quarter, or the previous quarter before that, that the Board had approved the capital infusion of about INR2,300 crores into Bajaj Auto Credit Limited, which is essentially to provide for an equity contribution of about 20% that we are targeting for that entity, of which INR955 crores has been infused in the first half. Second half, I expect that we might end up doing another INR1,200 crores to INR1,400 crores. Given the sizab le AUM that we will likely hit , all going well per plan that number on AUM should hit about INR10,000 crores by the end of this financial year. And so, in that context, I expect capital infusion to be anywhere in the range of about INR2,200 crores to INR2,300 crores that the Board has approved.

Got it sir. Thank you so much for this. Wishing all the best and a happy festive season.

The next question is from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead.

Thanks for the opportunity and Happy festive season to all. Sir congrats on the CNG success. Can you just give your sense on the market size opportunity for this product ? Can you share what number of touchpoints we have covered and what could be the market to the touchpoints that we cover in the next period of time. Also, on the CNG side, can you share how will be the margin for this product as it scales up to normal levels?

We didn't catch you completely as the audio wasn't good. I got only the first part, which I think you're asking about the addressable market and touch points. So, we do about, let's say a million bikes per month in India, right. And 70% of these are 125cc or below. Not to say that we are not getting people from scooters or from 150cc bikes but keeping that aside. These are spread over about 580 cities and towns, and the CNG network is in 355 of them. These 355 towns and cities account for about 70%. In a sense, you can say that the addressable market is almost half of the mileage conscious motorcycle customer, which amounts to about 0.5 million or so. This is the addressable market. But like I said, I have not taken into account people in the scooters and people who are in the higher CC ranges. We are now in 350 towns through all our dealerships. I think 500-odd dealerships are there along with the sub-dealer network. So, we are now present in all these places.

So basically, we've covered the whole market in terms of the CNG product?

Yes. By this month . W e have covered 95% of the addressable market in the beginning of October.

And just on the margin side for this product , once it reaches a good scale, how do you see the margin for the product?

So, at this point of time, we are clearly making an investment behind growin g the Freedom franchise. So, margins are not clearly close to where the rest of the motorcycle portfolio might be. It's a very conscious decision that we've taken to really drive, like I said, this product is a strategic priority. And so, we'll watch the space going forward. This product at the moment entails GST of about 28%. There's a larger conversation happening and on where GST might go, that might alter the economics if and when that happens. But at this point of time, we're clearly taking the discretionary core to invest significantly behind growing it. And so, I expect the margin profile of this product for the next couple of quarters would clearly not be accretive to the overall number. But again, this is something that we will have to find a way to try and manage across the broader enterprise.

Got it Sir. Lastly, just on the exports demand where the recovery pending mainly in Africa side, and you have mentioned about the focus interventions. Just a little more on the interventions that we are implementing in the market and how you're seeing the impact of the interventions in the market?

We identified that Africa was going to be underperforming for some time , because these are macroeconomic troubles, which many countries are fa cing because of the volatility of the currency. And it's a fragile situation. We have focused very hard on places like Mexico. I think we got Mexico at just the right time. In Mexico, the motorcycle industry is growing up by 25% or so. And I can tell you that in the sports segments, we've already acquired leadership, and we are a brand to reckon with over there now. And that has really been helpful because we got it early. It's not easy. This is not like India. It is not easy to build market share over there because we are just starting. I mean, the journey in a lot of these markets is just 5 or 10 years old, and it takes time to reach customers, distribution, etc. So, there were a lot of interventions, which we have done in the markets where we felt, which are of meaningful size and had the tailwind. So, I would say Central American countries, Mexico, Colombia, Peru, these are the markets which have done well, and they've done very well for us. The interventions have been in the form of a rapid introduction of some of our latest ranges. In fact, the sales of Dominar in Mexico beat the sales of Dominar in India, for example. Besides that, there are also markets like Turkey and all, where we've done o utstandingly well, because we identified and we have worked there for almost 3, 4 years bringing in complian t products. And we have deliberately attacked these markets from the top. There's a big cheap market in places like Turkey and even Brazil, et cetera. But we are coming from the top. So, our intervention in terms of best-in-class distribution and in terms of attacking the market from the top end is very helpful in building the brand. So those are the kind of things which we have done in places like LatAm and Turkey, etc.

Anything specific in Africa market, sir?

In African markets, we've got a very good retail network as opposed to most of other companies, Chinese, etcetera., who deal with wholesalers. We've got a very good retail network. And a lot of it is exclusive. And the whole attempt has been to keep the flock together, to not burden them with exposure through stock, to work with them for a very localized activation and support them, so that the attrition of the network is minimized.

Thank you, sir.

Thank you. The next question is from the line of Pramod Amthe from InCred Equities. Please go ahead.

Thanks for taking the question. The first 1 is with regard to E-3 wheeler, you are almost nearing the market leadership position in the E-3 wheeler passenger. So, in that context, I wanted to just check what is your thought of transitioning entire portfolio of ICE into the E-3 wheelers, what's the timeline you are looking at? And is it feasibly possible considering the user cases in the E-3 wheeler passenger. And similarly, the type of success you had in goods on the E -3 wheeler is looking better than the traditionalized ICE goods seg ment. So how are you planning to sustain it and build on the E-3 wheeler goods?

E-3 wheeler cargo, you mean?

See, our intent is not to direct the floor in this way or that way. Our approach is that multiple fuel systems will coexist , because there are multiple use cases. And we, for example, believe that CNG 3-wheeler will continue to thrive because, a) the infrastructure is very supportive; b ) the economics is not very different and c) there's a very high degree of reliability or perception of reliability and faith with the three-wheeler drivers on the Bajaj CNG business. So, we feel that what will suffer will be the things like diesel and to some extent petrol but CNG, to some extent LPG, electric in due course of time, CBG and ethanol, they will all coexist, and we are preparing ourselves to be on top of all these fuel technologies so that we can service the customer were whichever pathway the customer is coming from. And yes, we have a tremendous franchise there. We introduced our e-autos a bit later because we went back to the drawing board because we wanted to put in a product, which delighted the customer the most. And you can see betwe en August last year and now, we are already at 35% market share, and we had not even covered the country. That has just begun to happen now. So, through managing all these fuel systems , we will be in a fantastic position to engage with all types of pot ential customers, which will just have a synergistic effect and strengthen the overall proposition of Bajaj Auto 3-wheelers.

And looking at the product portfolio in 3 -wheelers, do you see more product introduction possibly in E-3 wheelers currently, if I'm not wrong, the rating of the power is relatively lower versus the peers. What's your thought of product positioning o r offerings possible in the next 1 year or 2 years?

We are going to substantially expand the 3-wheeler range on the electric side. And that process is starting from end November, and you will see almost every month a new product entering our stores.

And the last question is with regard to the captive finance. What is the penetration level of captive finance in your electric portfolio versus the ICE portfolio?

That is in the 30%, 34%.

You mean to say it's both the same, irrespective of the fuel system?

No, I thought your question was penetration of our cap tive finance company in financing of E- 2-wheelers? For ICE it is 50%.

Thanks, and all the best.

Thank you. Ladies and gentlemen, we would take that as a last question for today. I would now like to hand the conference over to Mr. Anand Newar for closing comments.

Thank you everyone, Happy Diwali.

Thank you. On behalf of Bajaj Auto Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines. This transcript has been edited for readability and does not purport to be a verbatim record of the proceedings.