New Delhi: The two wheeler industry has been the most enthusiastic adopter of electric and Bajaj Auto has been one of the legacy OEMs grabbing share from electric-first manufacturers. Sales of the Bajaj Chetak grew exponentially through 2024, and in December, the company was briefly number one, ahead of the erstwhile market leaders. Executive Director Rakesh Sharma tells ETAuto’s Contributing Editor, Sindhu Bhattacharya, that a range of new platforms have been lined up over the next few months in electric and Bajaj is aiming for a sustained leadership position. Sharma also says that for vehicles running on other alternate fuels, the two wheeler industry is ready but everything depends on the final pricing and the cost arbitrage with other fuels. Widespread availability is also an important factor in the adoption of ethanol. Also, if economic growth stalls and two wheeler purchases are postponed in the coming fiscal year, industry growth will be muted. The two wheeler industry is yet to touch the peak of FY18-19. Excerpts:
ETAuto: How many new Bajaj products/variants are being showcased at Bharat Mobility 2025? Do these include any products on flex fuel, CNG or other alternate fuels
Sharma: We are showcasing our latest innovation, the Bajaj Freedom, which is the world’s first CNG bike with bi-fuel capability. It halves commuting costs, reduces carbon emissions, it can go over 300 km, has the longest seat in its class. And all this, in a safe, standout design. It has been about five months since the launch and over 70,000 units have been billed. The bike has been received very enthusiastically by the customers, dealers, auto journalists and the gas distribution companies as well. It is delivering to design and was in fact voted ‘Bike of the Year’ by a premier Auto Media platform. We are working towards steadily improving the rate of adoption and drive acceptance at mass level.ETAuto: Leading two wheeler OEMs have already assured the government of their preparedness to produce flex fuel vehicles at scale. What is the current status, in terms of production readiness and is the government ready to lower the cost of ethanol blended fuel? With lower mileage than ICE vehicles, what is the USP of flex fuel vehicles for consumers?
Sharma: Indeed we have readiness for both motorcycles and three wheelers. The consumer benefit is, of course, lower fuel costs which will translate into a lower commute bill. But that obviously depends on the final pricing and the cost arbitrage with other fuels. Widespread availability is also an important factor in the adoption of ethanol.ETAuto: Bajaj Chetak has been gaining market share rapidly through 2024. What is the share currently and is the number one position within your line of sight?
Sharma: Indeed Chetak has been the fastest growing E Scooter this year and we did achieve the number one position in December, up from number five at the start of the year! We have lined up a range of new platforms in the next few months through which we expect to drive for leadership on a sustainable basis.
ETAuto: What has been the investment in launching and expanding Chetak? And what did Bajaj get right – in terms of pricing, distribution, product features? What have been the learnings so far in the Chetak journey? Do you see legacy two wheeler OEMs cornering a bulk of the electric two wheeler market from electric-first OEMs any time soon?
Sharma: Overall we have thus far invested over Rs 800 crore in our 2w and 3w EV area in R&D, Manufacturing and other functions. This has given us a robust platform from which to build a large, global and profitable business. Irrespective of pedigree the successes companies will need to ensure reliable and differentiated products and deliver a great customer experience on a sustained basis and make money while doing so.
ETAuto: A lot has been said about premiumisation in cars and two wheelers. Do you think the shrinking of the entry level and lower cc two wheeler demand is bad news for OEMs? And now, with inflation biting urban demand and rural running the show, will the lower cc demand revive?
Sharma: Segmental level structures shift gradually and it is incorrect to make longer term interpretations based on very short term occurrences. The longer term, say five-year trend, in motorcycles suggests a firm shift from 100 cc bikes to the 125cc + bikes by as much as 4-5 percentage points.
ETAuto: Also, with India’s economic growth slowing in FY26, how will overall two wheeler sales growth be impacted, given that buying a two wheeler is a ‘discretionary’ item in most households?
Sharma: Certainly if the economic backdrop for our type of customers, who mostly earn about Rs 40-60,000 per month, becomes difficult then the purchases are postponed and growth will be muted. The industry is yet to touch the peak of FY 18-19.
ETAuto: What has been the export scenario for Bajaj Auto in FY25 so far and how do you expect the growth curve to be in FY26? Which markets are showing signs of revival?
Sharma: We have been recovering quite well and steadily in FY 25 after the sharp falls of FY 22-23. We expect the growth rates over previous years to continue as they are doing, driven by Latin America which is now the largest region amongst emerging markets for motorcycles and where we have a great position across almost all markets with Brazil being our latest entry. Recovery in ASEAN and parts of Asia is also good. Africa is recovering too but I would say the situation there needs to be watched for macroeconomic headwinds.
ETAuto: What is the penetration level of EVs in two wheelers now and how do you see this trend going forward, from now till 2030? Will the Indian two wheeler market reach any significant level. of electrification by 2030?
Sharma: Currently e-scooters are about 18-20% of ICE scooters and growing at about 30%. It would be speculative to forecast a precise rate of penetration due to the multiple variables driving it. Our focus is to build capabilities to respond fast to emergent scenarios rather than try and anticipate them accurately.
