Bajaj Auto Managing Director Rajiv Bajaj expressed strong concerns about the Maharashtra government’s electric vehicle (EV) policy. Speaking to CNBC-TV18, Bajaj said the company has received only a small portion of the incentives it is owed under the state scheme and is uncertain whether the remaining subsidies will be disbursed.
“In my 36 years, I have never seen a policy failure, but I am afraid that I will see it with the Maharashtra government’s EV policy,” Bajaj said. Despite the pending dues, he reiterated his long-standing view that subsidies are not a sustainable solution for the industry. According to him, financial incentives often “slow innovation and cushion inefficiency”.
He added that ending subsidies for electric three-wheelers was a positive step and expressed hope that support for electric two-wheelers would also be phased out by March.
Bajaj’s two-wheeler EV production has stabilised
On the operational front, Bajaj said the company’s electric two-wheeler production has stabilised at around 30,000 units per month and is expected to scale up to 40,000 units by April. He also pointed to increasing consolidation in the EV market, noting that the top five manufacturers now account for nearly 80% of industry volumes.
Bajaj Auto has also been a beneficiary of the Centre’s Production Linked Incentive (PLI) scheme. The company expects total claims of about ₹1,000 crore under the programme, of which more than ₹642 crore has already been received.
Addressing upcoming regulatory changes, Bajaj said the proposed anti-lock braking system (ABS) mandate would impact only about a quarter of the two-wheeler industry and would not significantly address road safety concerns.
He added that the company’s market share in the premium 125cc-plus segment has risen to around 22–24%, an increase of roughly two percentage points over the past two months.
Bajaj raises other concerns
Bajaj also commented on the recent 50% reduction in benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. He warned that the cut would negatively impact exporters, although he clarified that RoDTEP is not a subsidy but a mechanism to offset structural inefficiencies in the operating environment.
While Bajaj Auto’s export margins remain strong, he noted that smaller exporters with limited pricing power could face greater pressure.
More broadly, Bajaj called for structural reforms to improve the ease of doing business in India. He highlighted persistent challenges in areas such as labour regulations, land acquisition, logistics, electricity costs and administrative processes, stating that operating conditions remain more difficult than in competing manufacturing hubs like Thailand and Vietnam.