Is the EV party over? Here’s what Rajiv Bajaj of Bajaj Auto thinks

Despite the efforts by the government and the automobile manufacturers, the electric vehicle penetration has remained 4-5% in the two-wheeler segment, and 1-2% in the passenger vehicle segment, said Rajiv Bajaj, Managing Director, Bajaj Auto, at the launch of Bajaj Freedom 125, the world’s first CNG motorcycle on Friday. According to Bajaj, there is ‘no party’ as far as electrification is concerned. 

“In spite of the government pouring so much money into EVs and subsidies, at the end of the day, the electric vehicle penetration in the two-wheeler segment is about 4-5% and somewhere between 1-2% in four-wheelers. So it doesn't really seem that it has taken off like a rocket,” said Bajaj.

Consumers are hesitant towards electrification due to unfamiliarity with the technology, concerns over range, charging infrastructure, and safety issues like fires caused by poorly-made products, according to Bajaj.  “It does not explain why, despite automakers dropping the price of electric vehicles by Rs 10,000 every month, the penetration is only 5-4% in the marketplace. So, it doesn't hit the sweet spot, as far as electrification is concerned,” said Bajaj. 

“With CNG, there is no range anxiety, we don't require subsidies, we didn't ask batteries for subsidy. And OMCs are already expanding the CNG network. So we don't think we are late to the party. Infact, we don't think there is any party happening in the first place as far as electrification is concerned. Some people may be messing around in one corner of the room, that doesn't make it a party,” he added. 

Notably, Bajaj Auto commands a whopping 88% market share in the CNG three-wheeler segment. 

Eyeing 100-125 cc segment

Bajaj Auto is eyeing the 100-125 cc segment with the launch of Bajaj Freedom 125, which has a hybrid CNG fuel tank. The motorcycle–which will be sold in the country in a phased manner beginning next quarter–is equipped with a 2 Kg CNG tank and 2 litre petrol tank, thus giving a combined range of 330 km. 

Bajaj Auto’s market share in the 100 cc segment is dismally low, whereas in the 125cc segment the manufacturer of Pulsar and Dominar commands a market share of 25%. “The domestic motorcycle market is as many as 9,00,000 motorcycles every month. It is the largest motorcycle market in the world. In the 100 cc motorcycles, which are currently running in petrol, Bajaj Auto has a very small share. In the 125 cc segment, despite having a market share of 25%, we are far from being the monarchy in the segment. If you put this both together, this is 70% of the market. So almost 6,50,000 recipients are 100-125 cc segment. And our share in that segment today is 1,50,000 units. Irrespective of what cannibalisation we look in, we are at 1,50,000 and we are targeting 7,00,000 units. So that is the kind of opportunity that lies ahead,” said Bajaj. 

The company has partnered with oil marketing companies for setting up of CNG pumps. 

Meanwhile, the country’s largest two-wheeler manufacturer, is looking to export Bajaj Freedom 125 to Egypt and Tanzania in Africa, Columbia and Peru in Latin America and Bangladesh and Indonesia in Asia. 

The company also plans to launch the Qute CNG, the country’s first auto taxi. “Qute CNG will be launching soon and Qute CNG will be making an entry in Egypt,” said Rakesh Sharma, Executive Director, Bajaj Auto.