Maharashtra EV Policy Could Be His First Policy Failure in 36 Years, Says Rajiv Bajaj

Bajaj Auto Managing Director Rajiv Bajaj has raised serious concerns about the Maharashtra government's electric vehicle policy, warning it could turn out to be a rare policy failure. Speaking to CNBC-TV18, Bajaj said, "In my 36 years, I have never seen a policy failure but I am afraid that I will see it with Maharashtra government's EV policy."

In the CNBC-TV18 interview, Bajaj revealed that the company has received only a fraction of the subsidies owed by the Maharashtra government and expressed doubt that the remaining amount would ever be paid. Despite this, he maintained his broader skepticism about subsidies, saying that they "slow innovation and cushion inefficiency." He said he was glad subsidies on electric three-wheelers have ended and expressed hope that those on two-wheelers would follow suit by March.

On the production front, Bajaj said that the company has stabilised electric two-wheeler output at around 30,000 units per month, with plans to scale that up to 40,000 units by April. He also noted that the electric two-wheeler industry is already consolidating, with the top five players now commanding an 80% market share.

Regarding the government's Production Linked Incentive (PLI) scheme, Bajaj said the company's total claims would amount to approximately ₹1,000 crore, of which over ₹642 crore has already been granted.

On regulatory matters, Bajaj said that the upcoming ABS regulation would affect only 25% of the two-wheeler industry and would "not resolve road fatalities." He added that the company's market share in the 125cc-plus segment stands at around 22–24%, roughly 2 percentage points higher than two months ago.

Commenting on the government's 50% cut in the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, Bajaj told CNBC-TV18 it "can only have a negative impact," while clarifying that RoDTEP is not a subsidy but rather a mechanism to offset inefficiencies that exporters face in the operating ecosystem. He added that while the cut is not the most significant concern for Bajaj Auto — given that its export EBITDA is well above the corporate EBITDA of 20% and the depreciating rupee — it could be damaging for businesses with less pricing flexibility.

Bajaj also called for greater ease of doing business in India across labour, legislation, land, logistics, and electricity, saying it remains harder to operate in India than in competing markets such as Thailand and Vietnam. He did not mince words about the policymakers responsible, telling CNBC-TV18: "There are some mantris and some babus that are really brain dead out there."

On the export outlook, Bajaj told CNBC-TV18 he expects performance to be around 600,000 units in Q4, broadly in line with Q3, and hopes to grow exports from 200,000 to 250,000 units in the coming months. He noted that sales to Sri Lanka are currently running at 10,000 units per month.