Rajiv Bajaj Calls Maharashtra EV Policy A “Failure”

Seldom do you see industrialists openly criticise governments and their policies. Rajiv Bajaj, Managing Director, Baja Auto is one person who never minces his words. In the past as well, Bajaj has been critical about certain policies that have affected the auto industry adversely. He’s now called out the Maharashra Government for its EV policy.

Speaking to CNBC-TV18, Bajaj said, "In my 36 years, I have never seen a policy failure but I am afraid that I will see it with Maharashtra government's EV policy." In the same interview, Bajaj stated that the company has received only a small portion of the subsidies due from the Maharashtra government and voiced doubts about the remaining amount being disbursed. 

₹1000 crore PLI scheme claim

Despite this, he reiterated his broader skepticism toward subsidies, arguing that they “slow innovation and cushion inefficiency.” He added that he welcomed the end of subsidies for electric three-wheelers and hopes those for two-wheelers will also be phased out by March this year. 

Speaking of subsidies, Bajaj said the company's total claims related to Government of India's Production Linked Incentives (PLI) would amount to approximately ₹1,000 crore, of which over ₹642 crore has already been granted. As a result, the two-wheeler manufacturer has stabilised production of electric two-wheelers at about 30,000 units per month and plans to raise it to 40,000 units per month from April this year. He said the electric two-wheeler industry is already consolidating, with the top five players accounting for 80 percent. 

50% reduction in RoDTEP scheme to have negative impact: Bajaj

Besides Maharashtra Government's EV policy, Bajaj also called out the 50% reduction in the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, stating that it could only have a negative impact. He emphasised that the government must improve ease of doing business across labour, legislation, land, logistics, and electricity, noting that operating in India remains more challenging than in markets such as Thailand and Vietnam. 

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Bajaj also clarified that RoDTEP is not a subsidy but a mechanism designed to offset inefficiencies exporters face within the operating ecosystem. Elaborating on export Bajaj stated in the CNBC TV18 interview that he expects export performance to be around 600,000 units in Q4. He further added that he hopes exports rise up to 250,000 units from 200,000 units in the next few months. He confirmed that sales to Sri Lanka were 10,000 units per month.

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