MD of Bajaj Auto, Rajiv Bajaj claimed that the brand cannot afford to be left out from the EV party and that it would be “far cheaper to be wrong than it is to be late." "We are not looking at EVs as mass market right now," he further added, while speaking to CNBC TV18. Rajiv Bajaj thinks the performance-linked incentive (PLI) scheme introduced by the government to boost the EV sector would help assuage the concerns of the market players. However, Bajaj Auto is not counting on it to grow its foray into the electric segment. "PLI scheme is helpful, but not the cement which we are using to make our building," he said.
Bajaj Auto has announced its electric vehicle (EV) plan under which it will produce new ‘Chetak’ for the next 3 to 5 years, clearly declaring the company's intent to conquer India’s electric 2-wheeler market. Rajiv Bajaj also stressed that another Chetak e-scooter, which is the one wish-list of several among the classic Chetak users, will be "added in FY23". The overall domestic sales "have been under a precipitous fall", he said. Despite the demanding situation, the company, he added, has gained in its market share in the three-wheeler segment.
In the current fiscal, Bajaj Auto aims to end with a total sale of 4.3 million vehicles, he said, while noting that it would be "wrong to compare sale in current fiscal with the previous". The earnings before interest, taxes, depreciation and amortisation or EBIDTA for the company "has come down to 16-17 percent from 20 percent", Rajiv Bajaj added.
In comparison to the current fiscal (FY22) where it will manufacture 8000-9000 electric scooters, Bajaj plans to roll out 50,000 EVs in FY23. The firm is building a new EV factory at Akurdi in Pune. Being set up at an initial investment of ₹ 300 crores, the facility will be ready by June for assembly and will make 2.5 lakh EVs per annum, while its capacity can be expanded to 5 lakh units a year based on demand.
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