"We are ignoring government's draft notification on EVs for now because it's impractical", Rajiv Bajaj said.
The road ministry has proposed to phase out all fossil-fuel based three-wheelers in four years and ban the sale of non-electric two-wheelers up to 150cc by 2025. Rajiv Bajaj, Managing Director of Bajaj Auto, shared his views on the proposal.
"Nobody can argue with the intent and direction but related to execution, I have three serious concerns; first, it's impractical to put a deadline to something like this. Second, it is ill-timed and third, I found it to be relatively incomplete because I heard a lot about two and three-wheelers when what the world needs is car-free cities," Bajaj told CNBC-TV18 on Wednesday.
According to Bajaj, it is important to get experience and then start in a phased manner.
Talking about the BS-VI transition, he said, "Rs 8,000-10,000 to the consumer is what can be assumed to be a ballpark figure for the price increase. I do not see any option for any of us to do anything other than to pass this on to the consumer and yes, this will severely dent demand."
On demand forecast front, Bajaj said, "I have been reviewing our global business for the last two days and we are seeing massive upheavals in markets around the world. There are markets from Argentina to Myanmar which is down between 60 percent and 90 percent and nobody is able to explain it. So I do not think anybody’s forecast is worth."
With regards to the BS-VI norms, Bajaj said, "In order to mitigate the impact of BS-VI we must all seriously consider a reduction in GST to be timed along with BS-VI products because that can have an ameliorating effect on BS-VI implementation."
On electric vehicles, he said, "We are ignoring government's draft notification on EVs for now because it's impractical".
Source: CNBC-TV18Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.