That the channel has played in reporting on the automobile industry and the milestones of the automobile industry in the country.
Well, Parshit, first and foremost, congratulations to all of you and thank you so much for having me here on your special day. I must tell you that my first most significant business interview was on CNBC almost 24 years ago. So it was 2001, Govind did it. It was on the occasion of the launch of the Pulsar. So whether it's India, whether it's Bajaj, or whether it's me, the association goes back almost to the beginning of CNBC. And I can tell you from my experience, I like to call it the ABCD of CNBC: A for authentic, B for balanced, C for compelling, and D for delightful. Authentic because you are probably the only channel that doesn't have this nonsense about source-based information. Everything is so credible. Balanced because there's always both points of view put before your viewers. Compelling because it is said discipline is repeating the boring brilliantly. So sometimes it may appear to you internally that what you do is getting boring, but to us on the outside, it seems brilliant because it is so finely honed. And finally delightful because there is always an X factor in what you do, from Young Turks to Future Female Forward and everything in between. It's a delight to watch CNBC. So I have had a great 24 years with you.
All right. Thank you so much for your compliments and support, Rajiv Bajaj. Now let me come back to the two-wheeler business. Now with the acquisition of KTM complete and approved, how do you now plan to scale up in India and global markets?
Yeah, so first let's take India. In India, Parshit, as you may be aware, for the last couple of months with KTM we have pretty strong tailwinds primarily due to the launch of new products, from the new adventure to the supermoto, most recently the Duke 160, etc. As a result, we have been experiencing our highest ever retails in India. Also from India in terms of exports, the new products are helping us to move to the next level in terms of KTM volumes. In fact, in that context, I must share with you that even in terms of exports to the US, which are not insignificant, we export about 10,000 KTM motorcycles every year to the US. Let me share with you something very interesting: when confronted with the 50% tariff, Bajaj reduced the FOB price out of India to absorb most of this 50% impact, and yet we are able to export at an EBITDA that is greater than our 20% corporate EBITDA. So this is not about the power of KTM or the power of Bajaj. This is about the power of India. It is so cost competitive to manufacture out of here that really more of us should be taking this strength out to other markets. So that's about KTM in India. As far as KTM globally is concerned, I said to you when we spoke the last time that at the heart of the turnaround globally is going to be the concept of less being more. Less in operational terms in the sense that KTM was brought down by this 12-month-plus inventory that had piled up in its network. Right? So I'm happy to say that retails are on course, that inventory is more or less depleted now, will be at the end of the year, and even strategically it is about resetting the brand. Less is more: get rid of the bicycle business, the car business, the smaller brands like MV Augusta, etc., and just focus on KTM going forward. So with this less is more approach, I feel quite confident that we are on the right path for the medium term.
How do you plan to increase your market share in the ICE two-wheeler segment in India? What's going to be the game plan for 2026?
Well, when it comes to ICE two-wheelers in India, prediction, basically it's about motorcycles for us because we don't make ICE scooters. Within that, our focus has always been on the 125cc plus space, and as Rakesh shared with your colleagues just ago, whatever we are doing now in product and marketing terms is already yielding results. Between August and November, our share as we calculated in the 125cc plus segment has grown by 2% already. And I think, you know, I just told you that 2001 was the launch year of the Pulsar, so next year is the 25th year of the Pulsar, and you will see that it will be the year of the Pulsar. Already as we speak, we are rolling out the first wave of new products which will be reaching dealerships very soon. And you will see wave after wave of new stuff coming out of the Pulsar platforms all through 2026. And since in the domestic market, Pulsar is like two-thirds of our volume, I think if the new Pulsars do well, then this is going to be the primary basis for share gain in the domestic market.
Any investments in bikes over 350cc considering that the government has hiked the GST there?
Well, I'd like to start by saying that I certainly hope the government will reconsider what it's done. Without dwelling on it too much, clearly this action is going to marginalize motorcycles above 350cc in this market. And if that happens, then it greatly handicaps the manufacturers from developing such motorcycles and taking them out to the world. So I sincerely hope this will be reviewed. Meanwhile, our plans continue unchanged for now, Parshit, because I don't know how many people are aware that when it comes to, and we measure it as 250cc plus, not just 350cc plus, so in the 250cc plus segment, between our Pulsar, Dominar, KTM, and Triumph, we are neck and neck with Royal Enfield in terms of export leadership. So with four brands across 108 countries, there is no reason for us to put our plans on the back burner because of a domestic adversity. But as I said, I hope that will be relooked at. So for now, in terms of both development and investment, our plans remain unchanged.
Right, you've become number one in electric two-wheelers as of November and for several months in this year. What next in terms of consolidating your EV position, making it even stronger in the EV space?
It's been a bit of one-two, one-two. It's between TVS and us really. Between the two of us, we have almost 50% share now. Some months we are ahead, and in other months TVS is ahead, I think. But more important than the number game, as I've always maintained with electric vehicles, especially with the Chetak, what is important to us is the qualitative side, the learning curve. And I'm candid enough to say that both in terms of product quality and service quality, when compared to the standards that we at Bajaj are used to, I'm still not satisfied. None of us are satisfied. So our primary focus continues to be to get up that learning curve of product and service quality. In the meantime, to grow the business and take it forward, we have to do what we always do, which is new products. So in fact, we have just started, I think in the last few days, the production of our second all-new model. This is not some variant of the existing, it's a new Chetak, because we want to grow the Chetak portfolio. So that production has started, it will be dispatched to dealers soon. We are expanding our capacity here at the Akurdi plant where we make the Chetak, from where I'm speaking with you. And of course, expanding the distribution of Chetak because Chetak is not sold through the Bajaj motorcycle dealerships. It has its own exclusive dealers. So this is how we have to keep it moving forward. And I'm also happy to share with you, I think I've done that before, that finally most of Chetak now has not just a positive gross margin, it actually has a positive EBITDA. So we now make money on most of the Chetak that we put out.
There are players like Revolt, Ola, and Ultraviolet which have already launched electric motorcycles. Royal Enfield will launch the Flying Flea electric motorcycle early next fiscal. Will Bajaj Auto be waiting any longer or will you be unleashing an electric motorcycle offensive soon?
No, at least for the domestic market, at least for the near term, I would think that our focus will continue to be on scooters in the Chetak brand. Our vision for Chetak is inspired by brands like Vespa or the Mini. Again, this is something I've shared with you before. We have now in the pipeline several new developments for Chetak. We see it growing into a portfolio of possibly seven very distinct scooters. So I think we must remain focused on that at least for the domestic market for the next few years. But yes, Rakesh did mention, I think again on CNBC, that Bajaj is working on electric cycles. This is true. We have started work, but it is primarily for the export markets.
All right. I would also like to ask you what's holding back EV adoption right now. The PM Drive scheme is coming to an end in March next year. What would be your recommendation on the kind of support you expect from the government going forward?
I think in terms of penetration, let's talk first about three-wheelers, an industry where we are a global leader and an overwhelming domestic leader. You may be aware that over 60% of this industry is now already electric between the e-rickshaw and the e-cart, and very soon it'll be 70%. So in terms of EV adoption in three-wheelers, where the payback is very quick, the consumer is already moving from various fossil fuel alternatives to EV. So there the adoption has been very rapid. Certainly with two-wheelers, I think it is taking longer. I think it is a matter of both having products that are more aspirational, because we can't reduce the motivation to purchase to just a calculation of cost of ownership or payback period, and also a greater degree of reassurance is required in the marketplace because, let's be honest, across manufacturers we've had product and service quality issues. So I think that's made the consumer a little tentative. But beyond that, I would make this point, Parshit, going back to my very early days at Bajaj: if I'm not wrong, Hero Honda with a very compelling proposition of 80 km per liter, 'fill it, shut it, forget it,' which became so famous. Hero Honda started around 1982-83, and it was only by around 1995 that the entire ecosystem of customers, mechanics, and people at large got comfortable with the thought of moving from two-stroke to four-stroke. And EV is an even bigger leap to take. So I think if that took 10-12 years, then I think EV will take a similar period of time before it gets to that tipping point, which means that sometime around 2030, we should see this tipping point emerge. That would be my conviction for penetration as far as two-wheelers is concerned.
Right. Exports are becoming all the more important due to the current context. Could you give us some insight on how you plan to grow your export footprint? Any new markets you're targeting?
Well, the first good news for us is that we are finally in a quarter where we are likely to average 200,000 units per month of exports. This is, I'm told, happening after almost 3 or 4 years. And it is happening without Nigeria coming back to its normal volumes, which for us was like 50-60-70,000 vehicles a month. We are still struggling, for no fault of ours. Our market share is intact, but we are still struggling there because of the state of that country, at a volume like 15,000 a month. So despite the deficit of say 40,000 vehicles a month from Nigeria, our overall export sales has come back to the highest level. So obviously we are doing well across other markets and across the new markets that we entered in recent years. If I have to point out a recent success, it would be that of Brazil, where we entered a couple of years back. We are now in the top five makers, I believe, averaging over 3,000 motorcycles in retail, all Dominars. So doing really well. And having experienced this success and having got an understanding of what it takes to compete in a market like that, which is a very large and competitive export market, I think we will try and take those lessons to the other big markets where we are not present as yet, namely the markets of ASEAN, and who knows, we have some thoughts for China, nothing very clear at the moment, but maybe in a few months I'll be able to share some more with you.
All right. Just to ask you about your investment plans, could you give us a sense that going forward, what would Rajiv Bajaj Auto like to put its money on in terms of the future of the business?
First and foremost, always on differentiation, on doing new things, on doing innovative stuff. Let me give you an example. I just finished saying that we are a global leader in three-wheelers and an overwhelming leader in this market with almost 80% share. So every time we speak, I share with you something remarkable that we are going to do in the near future. And this time, rather than talk about motorcycles, let me tell you that we have a really remarkable innovation in the pipeline as far as three-wheelers, specifically our electric three-wheeler, the Go, is concerned. So very soon, we should be in a position to share that with you. So stuff like that. On the Chetak, I just finished saying seven different form factors. So obviously, hopefully there'll be something that people find very fresh, very new with that. And of course, our work continues with Pulsars, Dominars, KTM, Triumphs, and electric motorcycles. So I guess across the spectrum of our portfolio, hopefully we keep doing some nice stuff, new stuff, different stuff, moving the business and the brand forward.
Right. And my final question, if I had to request you to sum up, what would be the factors which could really enable the further growth of the automobile industry in a sustained manner? Yes, the GST cut has given a boost to demand across vehicle sectors. But if we want to sustain this demand story going forward for the next few years, what more do we need to do as a government in order to help the automobile industry?
I'm going to say this. I don't think it is the government that needs to do more. Let me give you very quickly the example of the FAME or the PM Drive. To reiterate again why I have always said that I'm actually fundamentally not a fan of these kinds of subsidies, not only because they are here today and gone tomorrow, they don't result in fundamental investment in infrastructure for charging or in R&D activities at the end of the company, etc. But today, a company like us is actually owed so much subsidy by the center and the state government that's not even coming to us so far. We don't know why. So that aside, it is not for the government to do anything. It is for the auto companies. And if I have to say it in one word, I will say this: it is to focus. And the best example in recent times is Siddhartha Lal and Royal Enfield. The sharper the focus, the deeper you go with your business, with your brand, with your products, and make a name for yourself across the world. And I think that is what we have to do as Indian companies or Indian auto companies, Indian entrepreneurs: choose carefully our area of focus, achieve the highest standard of excellence there in terms of technology, brand quality, customer experience, etc., and take that story across the world. So the onus is really on us. There's nothing for the government to do here.
Okay. And finally, you did give us an insight into your future products, but you've done EVs, you've done CNG, you've done premium brands like Triumph and KTM. Anything beyond two and three wheels that Bajaj Auto would be working on for the future?
I just finished telling you about focus. So if I ever venture to do anything beyond two and three wheels at Bajaj Auto, the board should summarily sack me the very next day.
All right, Mr. Bajaj, thank you so much for joining us on our 26th anniversary for your words of support and encouragement and also giving us your sharp insights on the automobile sector and what will drive the story in the next few years.
Thank you so much, sir, for joining.
Thank you. Thank you. All the best.
Director of Bajaj Auto Rajiv Bajaj to speak about the company's growth strategy, game plan for 2026. What will drive EV growth beyond March 2026 once the PM Drive scheme comes to an end? And how are the GST reductions? Sorry, I'm going to start again.
Hello and welcome to CNBC TV18 on our 26th anniversary. Joining us right now is a very special guest, Rajiv Bajaj, the managing director of Bajaj Auto. In terms of launches, pushing exports and the overall growth of the company, Rajiv Bajaj is in conversation with us. Rajiv Bajaj, always a pleasure to have you here on CNBC TV18. We complete 26 years today. Give us a sense of your association with CNBC TV18 and the role that the channel has played in reporting on the automobile industry and the milestones of the automobile industry in the country.
Well, Parshit, first and foremost, congratulations to all of you and thank you so much for having me here on your special day. I must tell you that my first most significant business interview was on CNBC almost 24 years ago. So it was 2001, Govind did it. It was on the occasion of the launch of the Pulsar. So whether it's India, whether it's Bajaj, or whether it's me, the association goes back almost to the beginning of CNBC. And I can tell you from my experience, I like to call it the ABCD of CNBC: A for authentic, B for balanced, C for compelling, and D for delightful. Authentic because you are probably the only channel that doesn't have this nonsense about source-based information. Everything is so credible. Balanced because there's always both points of view put before your viewers. Compelling because it is said discipline is repeating the boring brilliantly. So sometimes it may appear to you internally that what you do is getting boring, but to us on the outside, it seems brilliant because it is so finely honed. And finally delightful because there is always an X factor in what you do, from Young Turks to Future Female Forward and everything in between. It's a delight to watch CNBC. So I have had a great 24 years with you.
All right. Thank you so much for your compliments and support, Rajiv Bajaj. Now let me come back to the two-wheeler business. Now with the acquisition of KTM complete and approved, how do you now plan to scale up in India and global markets?
Yeah, so first let's take India. In India, Parshit, as you may be aware, for the last couple of months with KTM we have pretty strong tailwinds primarily due to the launch of new products, from the new adventure to the supermoto, most recently the Duke 160, etc. As a result, we have been experiencing our highest ever retails in India. Also from India in terms of exports, the new products are helping us to move to the next level in terms of KTM volumes. In fact, in that context, I must share with you that even in terms of exports to the US, which are not insignificant, we export about 10,000 KTM motorcycles every year to the US. Let me share with you something very interesting: when confronted with the 50% tariff, Bajaj reduced the FOB price out of India to absorb most of this 50% impact, and yet we are able to export at an EBITDA that is greater than our 20% corporate EBITDA. So this is not about the power of KTM or the power of Bajaj. This is about the power of India. It is so cost competitive to manufacture out of here that really more of us should be taking this strength out to other markets. So that's about KTM in India. As far as KTM globally is concerned, I said to you when we spoke the last time that at the heart of the turnaround globally is going to be the concept of less being more. Less in operational terms in the sense that KTM was brought down by this 12-month-plus inventory that had piled up in its network. Right? So I'm happy to say that retails are on course, that inventory is more or less depleted now, will be at the end of the year, and even strategically it is about resetting the brand. Less is more: get rid of the bicycle business, the car business, the smaller brands like MV Augusta, etc., and just focus on KTM going forward. So with this less is more approach, I feel quite confident that we are on the right path for the medium term.
How do you plan to increase your market share in the ICE two-wheeler segment in India? What's going to be the game plan for 2026?
Well, when it comes to ICE two-wheelers in India, prediction, basically it's about motorcycles for us because we don't make ICE scooters. Within that, our focus has always been on the 125cc plus space, and as Rakesh shared with your colleagues just ago, whatever we are doing now in product and marketing terms is already yielding results. Between August and November, our share as we calculated in the 125cc plus segment has grown by 2% already. And I think, you know, I just told you that 2001 was the launch year of the Pulsar, so next year is the 25th year of the Pulsar, and you will see that it will be the year of the Pulsar. Already as we speak, we are rolling out the first wave of new products which will be reaching dealerships very soon. And you will see wave after wave of new stuff coming out of the Pulsar platforms all through 2026. And since in the domestic market, Pulsar is like two-thirds of our volume, I think if the new Pulsars do well, then this is going to be the primary basis for share gain in the domestic market.
Any investments in bikes over 350cc considering that the government has hiked the GST there?
Well, I'd like to start by saying that I certainly hope the government will reconsider what it's done. Without dwelling on it too much, clearly this action is going to marginalize motorcycles above 350cc in this market. And if that happens, then it greatly handicaps the manufacturers from developing such motorcycles and taking them out to the world. So I sincerely hope this will be reviewed. Meanwhile, our plans continue unchanged for now, Parshit, because I don't know how many people are aware that when it comes to, and we measure it as 250cc plus, not just 350cc plus, so in the 250cc plus segment, between our Pulsar, Dominar, KTM, and Triumph, we are neck and neck with Royal Enfield in terms of export leadership. So with four brands across 108 countries, there is no reason for us to put our plans on the back burner because of a domestic adversity. But as I said, I hope that will be relooked at. So for now, in terms of both development and investment, our plans remain unchanged.
Right, you've become number one in electric two-wheelers as of November and for several months in this year. What next in terms of consolidating your EV position, making it even stronger in the EV space?
It's been a bit of one-two, one-two. It's between TVS and us really. Between the two of us, we have almost 50% share now. Some months we are ahead, and in other months TVS is ahead, I think. But more important than the number game, as I've always maintained with electric vehicles, especially with the Chetak, what is important to us is the qualitative side, the learning curve. And I'm candid enough to say that both in terms of product quality and service quality, when compared to the standards that we at Bajaj are used to, I'm still not satisfied. None of us are satisfied. So our primary focus continues to be to get up that learning curve of product and service quality. In the meantime, to grow the business and take it forward, we have to do what we always do, which is new products. So in fact, we have just started, I think in the last few days, the production of our second all-new model. This is not some variant of the existing, it's a new Chetak, because we want to grow the Chetak portfolio. So that production has started, it will be dispatched to dealers soon. We are expanding our capacity here at the Akurdi plant where we make the Chetak, from where I'm speaking with you. And of course, expanding the distribution of Chetak because Chetak is not sold through the Bajaj motorcycle dealerships. It has its own exclusive dealers. So this is how we have to keep it moving forward. And I'm also happy to share with you, I think I've done that before, that finally most of Chetak now has not just a positive gross margin, it actually has a positive EBITDA. So we now make money on most of the Chetak that we put out.
There are players like Revolt, Ola, and Ultraviolet which have already launched electric motorcycles. Royal Enfield will launch the Flying Flea electric motorcycle early next fiscal. Will Bajaj Auto be waiting any longer or will you be unleashing an electric motorcycle offensive soon?
No, at least for the domestic market, at least for the near term, I would think that our focus will continue to be on scooters in the Chetak brand. Our vision for Chetak is inspired by brands like Vespa or the Mini. Again, this is something I've shared with you before. We have now in the pipeline several new developments for Chetak. We see it growing into a portfolio of possibly seven very distinct scooters. So I think we must remain focused on that at least for the domestic market for the next few years. But yes, Rakesh did mention, I think again on CNBC, that Bajaj is working on electric cycles. This is true. We have started work, but it is primarily for the export markets.
All right. I would also like to ask you what's holding back EV adoption right now. The PM Drive scheme is coming to an end in March next year. What would be your recommendation on the kind of support you expect from the government going forward?
I think in terms of penetration, let's talk first about three-wheelers, an industry where we are a global leader and an overwhelming domestic leader. You may be aware that over 60% of this industry is now already electric between the e-rickshaw and the e-cart, and very soon it'll be 70%. So in terms of EV adoption in three-wheelers, where the payback is very quick, the consumer is already moving from various fossil fuel alternatives to EV. So there the adoption has been very rapid. Certainly with two-wheelers, I think it is taking longer. I think it is a matter of both having products that are more aspirational, because we can't reduce the motivation to purchase to just a calculation of cost of ownership or payback period, and also a greater degree of reassurance is required in the marketplace because, let's be honest, across manufacturers we've had product and service quality issues. So I think that's made the consumer a little tentative. But beyond that, I would make this point, Parshit, going back to my very early days at Bajaj: if I'm not wrong, Hero Honda with a very compelling proposition of 80 km per liter, 'fill it, shut it, forget it,' which became so famous. Hero Honda started around 1982-83, and it was only by around 1995 that the entire ecosystem of customers, mechanics, and people at large got comfortable with the thought of moving from two-stroke to four-stroke. And EV is an even bigger leap to take. So I think if that took 10-12 years, then I think EV will take a similar period of time before it gets to that tipping point, which means that sometime around 2030, we should see this tipping point emerge. That would be my conviction for penetration as far as two-wheelers is concerned.
Right. Exports are becoming all the more important due to the current context. Could you give us some insight on how you plan to grow your export footprint? Any new markets you're targeting?
Well, the first good news for us is that we are finally in a quarter where we are likely to average 200,000 units per month of exports. This is, I'm told, happening after almost 3 or 4 years. And it is happening without Nigeria coming back to its normal volumes, which for us was like 50-60-70,000 vehicles a month. We are still struggling, for no fault of ours. Our market share is intact, but we are still struggling there because of the state of that country, at a volume like 15,000 a month. So despite the deficit of say 40,000 vehicles a month from Nigeria, our overall export sales has come back to the highest level. So obviously we are doing well across other markets and across the new markets that we entered in recent years. If I have to point out a recent success, it would be that of Brazil, where we entered a couple of years back. We are now in the top five makers, I believe, averaging over 3,000 motorcycles in retail, all Dominars. So doing really well. And having experienced this success and having got an understanding of what it takes to compete in a market like that, which is a very large and competitive export market, I think we will try and take those lessons to the other big markets where we are not present as yet, namely the markets of ASEAN, and who knows, we have some thoughts for China, nothing very clear at the moment, but maybe in a few months I'll be able to share some more with you.
All right. Just to ask you about your investment plans, could you give us a sense that going forward, what would Rajiv Bajaj Auto like to put its money on in terms of the future of the business?
First and foremost, always on differentiation, on doing new things, on doing innovative stuff. Let me give you an example. I just finished saying that we are a global leader in three-wheelers and an overwhelming leader in this market with almost 80% share. So every time we speak, I share with you something remarkable that we are going to do in the near future. And this time, rather than talk about motorcycles, let me tell you that we have a really remarkable innovation in the pipeline as far as three-wheelers, specifically our electric three-wheeler, the Go, is concerned. So very soon, we should be in a position to share that with you. So stuff like that. On the Chetak, I just finished saying seven different form factors. So obviously, hopefully there'll be something that people find very fresh, very new with that. And of course, our work continues with Pulsars, Dominars, KTM, Triumphs, and electric motorcycles. So I guess across the spectrum of our portfolio, hopefully we keep doing some nice stuff, new stuff, different stuff, moving the business and the brand forward.
Right. And my final question, if I had to request you to sum up, what would be the factors which could really enable the further growth of the automobile industry in a sustained manner? Yes, the GST cut has given a boost to demand across vehicle sectors. But if we want to sustain this demand story going forward for the next few years, what more do we need to do as a government in order to help the automobile industry?
I'm going to say this. I don't think it is the government that needs to do more. Let me give you very quickly the example of the FAME or the PM Drive. To reiterate again why I have always said that I'm actually fundamentally not a fan of these kinds of subsidies, not only because they are here today and gone tomorrow, they don't result in fundamental investment in infrastructure for charging or in R&D activities at the end of the company, etc. But today, a company like us is actually owed so much subsidy by the center and the state government that's not even coming to us so far. We don't know why. So that aside, it is not for the government to do anything. It is for the auto companies. And if I have to say it in one word, I will say this: it is to focus. And the best example in recent times is Siddhartha Lal and Royal Enfield. The sharper the focus, the deeper you go with your business, with your brand, with your products, and make a name for yourself across the world. And I think that is what we have to do as Indian companies or Indian auto companies, Indian entrepreneurs: choose carefully our area of focus, achieve the highest standard of excellence there in terms of technology, brand quality, customer experience, etc., and take that story across the world. So the onus is really on us. There's nothing for the government to do here.
Okay. And finally, you did give us an insight into your future products, but you've done EVs, you've done CNG, you've done premium brands like Triumph and KTM. Anything beyond two and three wheels that Bajaj Auto would be working on for the future?
I just finished telling you about focus. So if I ever venture to do anything beyond two and three wheels at Bajaj Auto, the board should summarily sack me the very next day.
All right, Mr. Bajaj, thank you so much for joining us on our 26th anniversary for your words of support and encouragement and also giving us your sharp insights on the automobile sector and what will drive the story in the next few years.
Thank you. 26 in terms of EV launches, pushing exports and the overall growth of the company. Rajiv Bajaj is in conversation with us. Rajiv Bajaj, always a pleasure to have you here on CNBC TV18. We complete 26 years today. Give us a sense of your association with CNBC TV18 and the role that the channel has played in reporting on the automobile industry and the milestones of the automobile industry in the country.
Well, Parshit, first and foremost, congratulations to all of you and thank you so much for having me here on your special day. I must tell you that my first most significant business interview was on CNBC almost 24 years ago. So it was 2001, Govind did it. It was on the occasion of the launch of the Pulsar. So whether it's India, whether it's Bajaj, or whether it's me, the association goes back almost to the beginning of CNBC. And I can tell you from my experience, I like to call it the ABCD of CNBC: A for authentic, B for balanced, C for compelling, and D for delightful. Authentic because you are probably the only channel that doesn't have this nonsense about source-based information. Everything is so credible. Balanced because there's always both points of view put before your viewers. Compelling because it is said discipline is repeating the boring brilliantly. So sometimes it may appear to you internally that what you do is getting boring, but to us on the outside, it seems brilliant because it is so finely honed. And finally delightful because there is always an X factor in what you do, from Young Turks to Future Female Forward and everything in between. It's a delight to watch CNBC. So I have had a great 24 years with you.
All right. Thank you so much for your compliments and support, Rajiv Bajaj. Now let me come back to the two-wheeler business. Now with the acquisition of KTM complete and approved, how do you now plan to scale up in India and global markets?
Yeah, so first let's take India. In India, Parshit, as you may be aware, for the last couple of months with KTM we have pretty strong tailwinds primarily due to the launch of new products, from the new adventure to the supermoto, most recently the Duke 160, etc. As a result, we have been experiencing our highest ever retails in India. Also from India in terms of exports, the new products are helping us to move to the next level in terms of KTM volumes. In fact, in that context, I must share with you that even in terms of exports to the US, which are not insignificant, we export about 10,000 KTM motorcycles every year to the US. Let me share with you something very interesting: when confronted with the 50% tariff, Bajaj reduced the FOB price out of India to absorb most of this 50% impact, and yet we are able to export at an EBITDA that is greater than our 20% corporate EBITDA. So this is not about the power of KTM or the power of Bajaj. This is about the power of India. It is so cost competitive to manufacture out of here that really more of us should be taking this strength out to other markets. So that's about KTM in India. As far as KTM globally is concerned, I said to you when we spoke the last time that at the heart of the turnaround globally is going to be the concept of less being more. Less in operational terms in the sense that KTM was brought down by this 12-month-plus inventory that had piled up in its network. Right? So I'm happy to say that retails are on course, that inventory is more or less depleted now, will be at the end of the year, and even strategically it is about resetting the brand. Less is more: get rid of the bicycle business, the car business, the smaller brands like MV Augusta, etc., and just focus on KTM going forward. So with this less is more approach, I feel quite confident that we are on the right path for the medium term.
How do you plan to increase your market share in the ICE two-wheeler segment in India? What's going to be the game plan for 2026?
Well, when it comes to ICE two-wheelers in India, prediction, basically it's about motorcycles for us because we don't make ICE scooters. Within that, our focus has always been on the 125cc plus space, and as Rakesh shared with your colleagues just ago, whatever we are doing now in product and marketing terms is already yielding results. Between August and November, our share as we calculated in the 125cc plus segment has grown by 2% already. And I think, you know, I just told you that 2001 was the launch year of the Pulsar, so next year is the 25th year of the Pulsar, and you will see that it will be the year of the Pulsar. Already as we speak, we are rolling out the first wave of new products which will be reaching dealerships very soon. And you will see wave after wave of new stuff coming out of the Pulsar platforms all through 2026. And since in the domestic market, Pulsar is like two-thirds of our volume, I think if the new Pulsars do well, then this is going to be the primary basis for share gain in the domestic market.
Any investments in bikes over 350cc considering that the government has hiked the GST there?
Well, I'd like to start by saying that I certainly hope the government will reconsider what it's done. Without dwelling on it too much, clearly this action is going to marginalize motorcycles above 350cc in this market. And if that happens, then it greatly handicaps the manufacturers from developing such motorcycles and taking them out to the world. So I sincerely hope this will be reviewed. Meanwhile, our plans continue unchanged for now, Parshit, because I don't know how many people are aware that when it comes to, and we measure it as 250cc plus, not just 350cc plus, so in the 250cc plus segment, between our Pulsar, Dominar, KTM, and Triumph, we are neck and neck with Royal Enfield in terms of export leadership. So with four brands across 108 countries, there is no reason for us to put our plans on the back burner because of a domestic adversity. But as I said, I hope that will be relooked at. So for now, in terms of both development and investment, our plans remain unchanged.
Right, you've become number one in electric two-wheelers as of November and for several months in this year. What next in terms of consolidating your EV position, making it even stronger in the EV space?
It's been a bit of one-two, one-two. It's between TVS and us really. Between the two of us, we have almost 50% share now. Some months we are ahead, and in other months TVS is ahead, I think. But more important than the number game, as I've always maintained with electric vehicles, especially with the Chetak, what is important to us is the qualitative side, the learning curve. And I'm candid enough to say that both in terms of product quality and service quality, when compared to the standards that we at Bajaj are used to, I'm still not satisfied. None of us are satisfied. So our primary focus continues to be to get up that learning curve of product and service quality. In the meantime, to grow the business and take it forward, we have to do what we always do, which is new products. So in fact, we have just started, I think in the last few days, the production of our second all-new model. This is not some variant of the existing, it's a new Chetak, because we want to grow the Chetak portfolio. So that production has started, it will be dispatched to dealers soon. We are expanding our capacity here at the Akurdi plant where we make the Chetak, from where I'm speaking with you. And of course, expanding the distribution of Chetak because Chetak is not sold through the Bajaj motorcycle dealerships. It has its own exclusive dealers. So this is how we have to keep it moving forward. And I'm also happy to share with you, I think I've done that before, that finally most of Chetak now has not just a positive gross margin, it actually has a positive EBITDA. So we now make money on most of the Chetak that we put out.
There are players like Revolt, Ola, and Ultraviolet which have already launched electric motorcycles. Royal Enfield will launch the Flying Flea electric motorcycle early next fiscal. Will Bajaj Auto be waiting any longer or will you be unleashing an electric motorcycle offensive soon?
Will Bajaj Auto be unleashing an electric motorcycle offensive soon?
No, at least for the domestic market for the near term. Our focus will continue on Chetak scooters. We have several new Chetak developments and see it growing into a portfolio of seven distinct scooters. But yes, we are working on electric cycles primarily for export.
What's holding back EV adoption? The PME drive ends next year. What support do you expect from the government?
Three-wheeler EV adoption is rapid at over 60%. For two-wheelers, it will take longer due to need for aspirational products and quality assurance. It will take about 10-12 years to reach tipping point around 2030, similar to the shift from two-stroke to four-stroke.
How will you grow exports? New markets?
Exports are back to 200,000 units per month without Nigeria. Success in Brazil with Dominars. We'll take lessons to other markets like Azan and possibly China.
Focus on differentiation. Remarkable innovation in our electric three-wheeler Go. Also new Chetak variants and continued work on all brands.
What enables sustained auto industry growth? Government role?
Government doesn't need to do more. Subsidies are flawed. Focus is key. Example of Royal Enfield. Indian companies should focus on excellence and take it global.
Anything beyond two and three wheels?
Focus. Board should sack me if I venture beyond.
Thank you, Mr. Bajaj, for your insights.
Tell us about your association with CNBC TV18.
ABCD of CNBC: Authentic, Balanced, Compelling, Delightful. My first interview was 24 years ago for Pulsar launch.
How will you scale up KTM in India and globally?
Strong tailwinds in India with new KTM products. Exports to US even with tariffs. Globally, less is more approach: reduce inventory, focus on KTM. Confident in turnaround.
How to increase market share in ICE two-wheelers? Game plan for 2026?
Focus on 125cc+ segment. Pulsar is 2/3 of volume. 2026 is 25th year of Pulsar. We are rolling out new Pulsar products in waves.
Any investments in bikes over 350cc despite GST hike?
Hope government reconsiders. Our plans unchanged. In 250cc+ segment we are neck and neck with Royal Enfield in exports. Four brands across 108 countries.
You became number one in EVs in November. How to consolidate?
Focus on product and service quality. We've started production of second all-new Chetak. Expanding capacity. Chetak now has positive EBITDA.
Will Bajaj launch an electric motorcycle soon? Competitors have. Royal Enfield launching.
No, focus remains on Chetak scooters for domestic market. Working on electric cycles for export.
TV18. We complete 26 years today. Give us a sense of your association with CNBC TV18 and the role that the channel has played in reporting on the automobile industry and the milestones of the automobile industry in the country.
Well, Parshit, first and foremost congratulations to all of you and thank you so much for having me here on your special day. I must tell you that my first most significant business interview was on CNBC almost 24 years ago, in 2001, on the occasion of the launch of the Pulsar. So whether it's India, whether it's Bajaj, or whether it's me, the association goes back almost to the beginning of CNBC. I like to call it the ABCD of CNBC: A for authentic, B for balanced, C for compelling, and D for delightful. Authentic because you're probably the only channel that doesn't do this nonsense about source-based information; everything is so credible. Balanced because there's always both points of view. Compelling because discipline is repeating the boring brilliantly. And delightful because there is always an X factor in what you do. It's a delight to watch CNBC. I've had a great 24 years with you.
All right. Thank you so much for your compliments and support, Rajiv. Now let me come back to the two-wheeler business. With the acquisition of KTM complete and approved, how do you now plan to scale up in India and global markets?
First, let's take India. For the last couple of months, with KTM we have pretty strong tailwinds primarily due to the launch of new products — from the new adventure to the supermoto, most recently the Duke 160. As a result, we have been experiencing our highest ever retails in India. Also from India in terms of exports, the new products are helping us move to the next level in KTM volumes. Even in exports to the US, we export about 10,000 KTM motorcycles every year. Let me share something interesting: when confronted with the 50% tariff, Bajaj reduced the FOB price out of India to absorb most of that 50% impact, yet we are able to export at an EBITDA greater than our 20% corporate EBITDA. This is not about the power of KTM or Bajaj; it is about the power of India. It is so cost competitive to manufacture out of here that more of us should be taking this strength to other markets. As far as KTM globally, the heart of the turnaround is the concept of less being more — less inventory, resetting the brand, getting rid of the bicycle business, car business, smaller brands like MVA, and just focusing on KTM. With this approach, I feel quite confident that we are on the right path.
How do you plan to increase your market share in the ICE two-wheeler segment in India? What's going to be the game plan for 2026?
When it comes to ICE two-wheelers in India, it's about motorcycles for us because we don't make ICE scooters. Our focus has always been on the 125cc-plus space. As Rakesh shared with your colleagues, whatever we are doing now in product and marketing terms is already yielding results. Between August and November, our share in the 125cc-plus segment has grown by 2%. 2001 was the launch year of the Pulsar, so next year is the 25th year of the Pulsar. It will be the year of the Pulsar. Already we are rolling out the first wave of new products that will reach dealerships very soon. You will see wave after wave of new stuff from the Pulsar platforms all through 2026. Since the Pulsar is about two-thirds of our domestic volume, if the new Pulsars do well, that will be the primary basis for share gain in the domestic market.
Any investments in bikes over 350cc considering that the government has hiked the GST there?
I certainly hope the government will reconsider what it's done. Clearly, this action is going to marginalize motorcycles above 350cc in this market, which greatly handicaps manufacturers from developing such motorcycles and taking them out to the world. I sincerely hope this will be reviewed. Meanwhile, our plans continue unchanged for now. People may not be aware that we measure it as 250cc-plus, not just 350cc-plus. In the 250cc-plus segment, between our Pulsar, Dominar, KTM, and Triumph, we are neck-and-neck with Royal Enfield in terms of export leadership. With four brands across 108 countries, there is no reason to put our plans on the back burner because of a domestic adversity. So for now, our development and investment plans remain unchanged.
