Bajaj Auto shares rose in early trade on Friday but were back in the red territory ahead of the two-wheeler maker’s new electric vehicle production line launch due later in the day. On Thursday, the firm also announced that its board would consider a buyback of shares next week.
Shares of the company gained 2.2 percent in early trade but soon dropped 2.7 percent from that level to the day’s low of Rs 3,857. At 11:18 am, the stock was trading 0.4 percent lower at Rs 3,860.50 on BSE.
Chetak EV will be produced at the factory where the Chetak IC scooter was manufactured till 2005. Bajaj Auto has a booking backlog of approximately 16,000 Chetak EVs due to the supply crunch. The new EV factory will have a capacity of 400 units per day initially. Meanwhile, EV production will continue at Chakan simultaneously for some time.