'Claims of ICE vehicle demise self-serving'

During the past few months, Bajaj Auto has seen a huge increase in its electric scooter sales, thanks to the massive distribution expansion and launch of models below ₹1 lakh for the first time. Based on Vahan registrations, Bajaj Auto's electric two-wheeler market share stood at 19.3 per cent till August 30. RAKESH SHARMA, executive director, Bajaj Auto in an email interview with Surajeet Das Gupta, talks about company's mega electric vehicle (EV) play. Edited excerpts:

- RAKESH SHARMA

One of your startup competitors has recently said that internal combustion engine (ICE) players have just two years to do the right thing. Do you see them as big challengers?

Pronouncements proclaiming complete demise of ICE vehicles are perhaps self-serving, ignoring customer needs and challenges which the government faces. In driving the EV business forward, we consider our true opponent to be the ICE vehicle - that is where the larger blue ocean oi opportunity lies. In some segments like scooters, EVs can offer a distinctly superior value proposition to the ICE customer in terms of savings, riding experience and convenience. Currently, the penetration of EVs in scooters is about 15 per cent.

This may increase to 25 per cent in two years. We will aim for leadership position in the segment. It also brings absolutely new and additional business to us, not just in India but at a global scale in the future. Similarly e- autos open up the possibility of upgrading customers from e-rickshaws. We were among the first to launch EV scooters in 2019.

So, what is your overall EV strategy for Bajaj?