Rajiv Bajaj, Managing Director of Bajaj Auto, has voiced strong criticism of India’s current electric vehicle (EV) policies, arguing that government subsidies and lax regulations are hindering the industry’s sustainable growth. He contends that the influx of under-researched EV startups, which he labels as “upstarts,” has led to safety concerns and undermined consumer trust. Bajaj emphasizes the need for stringent quality standards and a focus on long-term viability over short-term incentives.
Highlighting the issue of safety, Bajaj points to numerous incidents of EV fires, attributing them to substandard components and inadequate testing. He criticizes the government’s dilution of safety norms, which he believes has allowed poorly manufactured vehicles to enter the market, compromising consumer safety. Bajaj stresses that without rigorous R&D and adherence to high-quality standards, the EV sector risks losing public confidence.
Bajaj also challenges the effectiveness of the FAME (Faster Adoption and Manufacturing of Electric Vehicles) subsidy scheme, arguing that it disproportionately benefits Chinese manufacturers supplying low-cost components to Indian EV makers. He asserts that such subsidies mask the true cost of EVs and discourage innovation among domestic companies. Instead, Bajaj advocates for a market-driven approach that fosters self-reliance and technological advancement within India’s automotive industry.
Expressing skepticism about the current state of EV adoption, Bajaj notes that despite significant government investment, EV penetration remains low—around 4-5% in two-wheelers and 1-2% in passenger vehicles. He attributes this to consumer concerns over range, charging infrastructure, and safety. Bajaj argues that the perceived “EV revolution” is overstated and that the industry needs to address these fundamental issues to achieve meaningful growth.
As an alternative, Bajaj champions compressed natural gas (CNG) vehicles, citing their affordability, safety, and existing infrastructure. He highlights the launch of Bajaj’s Freedom 125, the world’s first CNG-powered motorcycle, as a practical solution for India’s transportation needs. Bajaj believes that CNG vehicles offer a more viable path to reducing emissions and dependence on fossil fuels without the challenges currently facing the EV sector.
In conclusion, Rajiv Bajaj calls for a reevaluation of India’s EV policies, emphasizing the importance of quality, innovation, and realistic adoption strategies. He urges the government to focus on creating a robust ecosystem that supports sustainable mobility solutions, including CNG vehicles, rather than relying solely on subsidies that may not yield the desired long-term benefits.
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