I have no retirement or succession plans: Rajiv Bajaj

Bajaj Auto is gearing up to launch clean-energy vehicles including another motorcycle powered by compressed natural gas (CNG), showcase ethanol-powered motorcycles and three-wheelers next month, as well as launch a new Chetak platform early next year, as it closes in on hitting 100,000 monthly sales from clean-energy vehicles this festival season.

In an interview with CNBC-TV18, Bajaj Auto managing director Rajiv Bajaj said these initiatives were part of the firm’s broader goal to achieve monthly sales of 100,000 clean-energy vehicles this festival season.

“We stand on the cusp of monthly sales and production of 100,000 clean energy vehicles by this festive season,” Bajaj said in the interview.

The company recently launched the Freedom 125, the world’s first CNG-powered motorcycle.

Around 2,000 units of the bike that features a 2-kg CNG and a 2-litre petrol tank with a range of up to 330 km has 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.”

He also confirmed an e-rickshaw would be launched next financial year.

Additionally, Bajaj Auto plans to showcase ethanol-powered motorcycles and three-wheelers next month.

These would be launched in FY25.

Moreover, Bajaj Auto plans to bring more electric scooters in this fiscal year – both in the affordable and the premium range.

A new Chetak platform too is expected early next year.

When asked about the launch expectations for electric motorcycles, Bajaj said, "The advantage that motorcycles had over scooters in ICE format is now gone with EVs. Scooters in the EV format hold far more potential than motorcycles."

Rajiv Bajaj said that he advocates a reduction in GST on CNG motorcycles.

"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.

Already, Bajaj Auto holds an 18 per cent share of the market in the electric two-wheeler segment where Chetak e-scooter is competing with TVS’ iQube.

Bajaj Auto is also the market leader in the electric three-wheeler segment, holding a 36 percent share.

"We are at 36 per cent market share in electric three-wheelers; we would like to take it up to 80 per cent," Bajaj said.

The company’s EV business is already profitable.

‘No plans to retire’

“I must clarify that I am not going anywhere anytime soon. I have no plans to retire,” Bajaj said in the interview.

His remarks come after media reports had said he had hinted the company needed a “younger managing director (MD)” at the company’s 17th annual general meeting.

Bajaj said on Monday he had said that on a “lighter note” as he was congratulating his colleagues in 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 34 years.

"I am 58 and not so young anymore,” he said, though he added, he wouldn’t go anywhere immediately.

Bajaj said that he became MD around 20 years back when he was 35.

Bajaj has held the position of Bajaj Auto's MD since April 2005.

“Look at my good friend Siddhartha (Lal) at Royal Enfield.

"What a fantastic success he's had and he's about 10 years younger than I.

"And look at the amazing run TVS has had and Sudarshan (Venu) is just 35, I think, and he was MD at 33.

"So when I look at this, it certainly makes me feel that while we are wiser, let’s say when we are older, but I wonder if we have the same drive we did when we were 35 and 45.

"So you know the saying, if only youth knew and if only age could.

"So that sometimes does play up in my mind,” he said on Monday.

“But no, I have no retirement plans and no succession plans at the present moment.”