Shares of Bajaj Auto rose for a third straight day, rising more than 2% in morning trade on April 3, amid reports the automaker will launch its first electric three-wheeler this month.

According to Hindu Businessline, the product will be launched for the freight and passenger car markets, but initially in a limited number of cities.

The stock was trading at Rs 3,971.80 on the National Stock Exchange, up 2.2% at 1:30 am.

“It will be a limited launch as we want to move forward gradually as it is crucial to have a stable product to commercial users,” Bajaj Auto executive director Rakesh Sharma told The Hindu.

Analysts at foreign brokerage JPMorgan are bullish on the company’s EV push and expect a rollout in this vertical to lead to a re-rating on the stock.

“Bajaj Auto will launch several 2W EV models in the coming quarters and also said to restructure the supply chain, which has reduced cost and increased availability to 10,000 units/month. They will also launch 3W EV in Q1FY24,” they wrote in a recent report.

The dwindling export volume of Bajaj Auto is a major pain point for the company, which is expected to bottom out soon.

JPMorgan expects a possible recovery in Q2FY24. It has set a target price of Rs 4,400 on the stock, suggesting an upside of more than 10%.

The company has yet to release its March 2023 sales figures.