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Bajaj Auto Targets Clean Energy Milestone With CNG, Ethanol Vehicles
Bajaj Auto is preparing to introduce clean-energy vehicles, including a new CNG-powered motorcycle and ethanol-powered motorcycles and three-wheelers next month. The company also plans to launch a new Chetak platform early next year. These initiatives aim to achieve monthly sales of 100,000 clean-energy vehicles during the festival season.
In an interview with CNBC-TV18, Rajiv Bajaj, Managing Director of Bajaj Auto, highlighted the company's goal of reaching 100,000 monthly sales of clean-energy vehicles by the festive season. "We stand on the cusp of monthly sales and production of 100,000 clean energy vehicles by this festive season," he stated.
Focus on Clean-Energy Vehicles
The company recently introduced the Freedom 125, the world's first CNG-powered motorcycle. Approximately 2,000 units featuring a 2-kg CNG and a 2-litre petrol tank with a range of up to 330 km have been dispatched. "We hope to deliver 8,000-9,000 Freedom 125 CNG bikes in August, and by January we will hit the mark of 40,000 CNG motorcycles per month," Bajaj added.
Additionally, Bajaj Auto plans to showcase ethanol-powered motorcycles and three-wheelers next month. These are expected to be launched in FY25. The company also intends to introduce more electric scooters this fiscal year in both affordable and premium ranges. A new Chetak platform is anticipated early next year.
Market Share and Future Plans
Bajaj Auto currently holds an 18 percent share in the electric two-wheeler segment with its Chetak e-scooter competing against TVS' iQube. In the electric three-wheeler segment, Bajaj Auto leads with a 36 percent market share. "We are at 36 percent market share in electric three-wheelers; we would like to take it up to 80 percent," Bajaj said.
The company's EV business is already profitable. Bajaj also confirmed that an e-rickshaw would be launched next financial year.
Advocating for GST Reduction
Rajiv Bajaj advocates for reducing GST on CNG motorcycles. He argued that if electric vehicles are taxed at 5 percent, there is no reason why CNG vehicles should be taxed at 28 percent. "If electric vehicles can be taxed at 5 percent, there is no reason why a vehicle powered by a relatively cleaner fuel like CNG needs to be taxed at 28 percent," he said.
No Immediate Retirement Plans
Bajaj clarified that he has no plans to retire soon despite media reports suggesting otherwise. "I must clarify that I am not going anywhere anytime soon. I have no plans to retire," he said in the interview.
His comments followed reports indicating he hinted at needing a younger managing director during the company's annual general meeting. Bajaj explained that his remarks were made in jest while congratulating colleagues at Bajaj Auto Credit.
"So just as these two companies (Chetak Technologies and Bajaj Auto Credit) have new MDs, Bajaj Auto (also) needs a new MD, a younger MD because I have been here for 34 years. I am 58 and not so young anymore," he said but added that he wouldn't leave immediately.
Bajaj became MD around two decades ago when he was just 35 years old and has held the position since April 2005.
"Look at my good friend Siddhartha (Lal) at Royal Enfield. What a fantastic success he's had and he's about ten years younger than I am. And look at the amazing run TVS has had with Sudarshan (Venu), who is just 35 now and was MD at 33," he noted.
"So when I look at this, it certainly makes me feel that while we are wiser as we get older, I wonder if we have the same drive we did when we were younger," he reflected but reiterated that he has no retirement or succession plans currently.
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