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.

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.

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.

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.

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.

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.

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.

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.