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Bajaj Auto can't engage with Harley-Davidson due to tie-up with KTM: Rajiv Bajaj

Rajiv Bajaj, MD of Bajaj Auto, said COVID-induced lockdown and restrictions have hurt suppliers in Tier 1 and Tier 2 cities.

September 29, 2020 / 12:47 PM IST

Rajiv Bajaj said Bajaj Auto cannot engage with Harley-Davidson for a strategic tie-up due to its alliance with KTM.

Harley-Davidson on September 24 said will shut down manufacturing and sales operations in India.

In an interview with CNBC-TV18, the Bajaj Auto Managing Director also said COVID-induced lockdown and restrictions have hurt suppliers in Tier 1 and Tier 2 cities.

"Lockdown has destroyed tier one and two suppliers. Ministers and Joint Secretaries need to get out of their ivory towers and see what’s happening on the ground", he said.

Also Read: Nine reasons why Harley Davidson failed in India

Bajaj said that the automaker plans was planning to manufacture over 1.3 million vehicles in Q3FY21, but might be able to meet that target due to supply constraints.

"There is much uncertainty with commodity prices and imports. Our imports of tyres have been stuck. There is lots of arbitrary decision making and retrospective withdrawal of MEIS (Merchandise Exports from India Scheme) has made matters worse," he said.

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Companies also have to factor in the possibility of farmer protests disrupting production plans, Bajaj added.

According to Bajaj, there is no obvious evidence to suggest that fears of infections have lead to surge in demand for personal vehicles.

"Fundamental demand is down, people have lost jobs, had salary cuts and are tentative. I don't see any obvious shift to personal mobility", he told CNBC-TV18.

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first published: Sep 29, 2020 11:51 am