The second largest two-wheeler manufacturer in the country, Bajaj Auto forayed into the two-wheeler market in 1972 by launching the famous Bajaj Chetak. Now, after the success of 50 years, the company is gearing up to release multiple e-2Ws by aiming at the eco-friendly market space.
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Rajiv Bajaj, MD of Bajaj Auto, said that he was fortunate enough to be a part of the brand when it transitioned from scooters to motorcycles. “Our goal 30 years ago was to be the world's most versatile and complete motorcycle maker, which I think we have achieved. We became the world's most valuable motorcycle manufacturer last year,” he said, hoping to do the same with electric vehicles.
In an interview with Network18, Rajiv said that he will be heading to the British motorcycle brand Triumph’s launch in London, to unveil their joint product after announcing their collaboration for the first time in 2017.
“The production will begin in early July and deliveries will also begin in July. Obviously, more details about the product and prices will be released closer to the launch. We are trying our very best to hold the price closer to Rs 2.5 lakh and not at Rs 3 lakh,” said the MD, adding that their new plant in Chakan has the capacity to manufacture about 6,000 to 8,000 Triumph motorcycles per month.
Bajaj has consciously chosen to focus on the 125cc Plus segment with a lesser focus on the 100cc segment, as three factors influence the decision. “One, it is the customer whose sentiment was most impacted by the lockdown. Secondly, that is where petrol prices hurt the most. I think people are being beamed by EVs there, more than in any other segment. And finally, the premiumisation to 125cc is the third factor,” he added.
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As far as exports are concerned, from an average of 2,00,000 vehicles a month, a few months ago, we had come down to almost half at 1,00,000-1,10,000 a month. This month, it looks more like 140,000 and hopefully next quarter is more like 1,50,000, the MD said.
Post the devaluation of the Nigerian currency Naira, Bajaj says that there is a lot of uncertainty in the market. “One day, we hear of three-wheelers being banned in Egypt, the next day, it's motorcycles being banned in Iraq. Or the next day, Argentina says it can deal only with RMB, and the next day, Nigeria devalues its currency,” he said, hoping to make a comeback by producing 75 percent of the normal demand. “In the bigger picture, price increases do get absorbed, consumers do adapt, as what we are selling them is not luxury but something they need,” Rajiv added.
The Bajaj Auto MD also commented on the discontinuation of FAME subsidies from March 24. “The earlier, the better,” he said, adding that many innovations have come into the ICE space over the last 30 years without any subsidy. He further added that the idea of subsidy does not translate to sustainability and that he hopes to move into expanding the environment of EVs.
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