No Party In 2-Wheeler EV Space Despite Subsidies: Rajiv Bajaj

SUMMARY

Bajaj also said that penetration was low despite major two-wheeler EV manufacturers offering discounts to the tune of almost INR 10,000 every month

There’s no party happening in the electric two-wheeler space as of now, Bajaj CEO said

Rajiv Bajaj also cited issues related to range, lack of charging infrastructure and safety concerns as reasons holding consumers back

Bajaj Auto CEO Rajiv Bajaj has said that electric two-wheeler sales in the country are yet to reach an “inflection point” despite subsidies and discounts offered by manufacturers.

Bajaj made the comments on the sidelines of an event to launch the automaker’s CNG motorcycle “Freedom 125”, according to NDTV Profit.

Bajaj said that penetration of electric two-wheelers is still 4% to 5% despite overall EV sales growing in the past few years and a wider shift in the Indian automotive sector.

“There’s no party happening as of now in the electric two-wheeler space,” Bajaj said.

He also said that penetration of electric vehicles (EVs) in the two-wheeler space is low despite manufacturers offering discounts to the tune of almost INR 10,000 per unit every other month.

He also highlighted the subsidies and tax breaks offered by the government to increase the sales of escooters and ebikes.

“Something is holding the consumer back and the question is what? We think it’s a combination of things but more than anything it is the unfamiliarity with the technology, the concerns with range, the concerns with charging, and the concerns with safety,” Bajaj said as per Fortune India.

The Fortune India report also cited Bajaj as saying that a “bunch of people” are not doing favour to the EV industry by bringing in “rubbish from China” and sending it to dealerships. He added that the EV space is yet to “hit the sweet spot” as far as electrification is concerned.

His comments come at a time when EV two-wheeler registrations have been growing. As per government data, the registrations of two-wheeler EVs in the country soared 34% year-on-year (YoY) to 8.49 Lakh units in 2023.

Meanwhile, the Centre plans to continue offering sops and subsidies and the stage is said to be all set for the announcement of the third edition of the FAME scheme in the upcoming Union Budget, with an expected outlay of INR 10,000 Cr. The scheme has been envisaged to spur the adoption of EVs in the country.

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