Bajaj Auto Managing Director Rajiv Bajaj has expressed serious concerns over the Maharashtra government’s electric vehicle policy, warning it could become a rare policy failure in his 36-year career. In an interview with CNBC-TV18, he noted that Bajaj Auto has received only a fraction of the subsidies owed and doubted if the remaining amount would ever be paid.
Despite his criticism of subsidies, which he says “slow innovation and cushion inefficiency,” Bajaj Auto has stabilized electric two-wheeler production at 30,000 units per month, aiming to scale to 40,000 units by April. He also highlighted that the top five players now control 80% of the electric two-wheeler market.
On government incentives, Bajaj said the company’s PLI claims total ₹1,000 crore, with ₹642 crore already granted. He also criticized the ABS regulation, saying it affects only 25% of the two-wheeler industry and “will not resolve road fatalities.”
Regarding exports, Bajaj warned that the 50% cut in the RoDTEP scheme could negatively impact companies with less pricing flexibility, though Bajaj Auto remains resilient due to strong EBITDA and a depreciating rupee. He called for easier doing business in India, noting challenges in labor, legislation, land, logistics, and electricity compared to Thailand and Vietnam.
Bajaj also shared export forecasts, expecting 600,000 units in Q4, stable from Q3, with plans to increase exports from 200,000 to 250,000 units per month. Sales to Sri Lanka are currently running at 10,000 units per month.
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