EVs catching fire because of 'mad rush' to get into business: Rajiv Bajaj

'Upstarts and not start-ups have entered the sector'

An environment that promotes a “mad rush” to get into the electric vehicles (EV) business is more worrying than such two-wheelers catching fire, said Rajiv Bajaj, managing director of Bajaj Auto, on Friday.

Buyers will not be put off by fires because they can figure out reliable brands, but the authorities must not dilute quality norms, Bajaj told reporters after the inauguration of a Chetak Technology’ facility in Akurdi near Pune.

“What concerns me more is the environment that has promoted this mad gold rush (to get into EVs). When the flower doesn’t bloom, you don’t fix the flower, you fix the environment. Why is this happening in the EV world? Why are people who have no business to be in the EVs, are in the business?

"This must be fixed and understood. It’s partly the incentives and partly because the relevant authorities in the government have diluted the norms,” said Bajaj,” referring to low-speed (up to 50kmph) vehicles that do not go through testing or validation.

“Under the guise of low-speed vehicles, one can bring any junk from anywhere and sell it here,” he said. “Concerned people have to reflect on this. As far as the consumers are concerned, they are smarter and know how to make a choice.”

“There is a big carrot out there in the marketplace in the form of FAME and state level benefits which is just tempting so many people who have perhaps failed at everything else to import some kits and sell them. Unfortunately, this is the environment that exists. Will it necessarily colour the industry? I don't think so,” said Bajaj, referring to an Indian government scheme promoting EVs.

"There are so-called EV makers every day. You call them start-ups; I call them upstarts." Without naming any particular brand, he said he is amazed that people "With no R&D, no real purchase experience in the engineering sense, and nothing more than just half an assembly facility are importing stuff that has not been validated for the marketplace. "That is perhaps why you are seeing what you are seeing -- accidents, mishaps or fire incidents."

Indian states subsidise e-two-wheelers eligible for incentives under the FAME-II scheme on the basis of the size of their lithium-ion battery packs.

Bajaj Auto entered the e-two wheeler market in 2019 with the Chetak brand. The model has been received well and the company is bracing to meet demand. But Bajaj has no qualms. “We have a certain way of doing things. We follow a robust process that ensures that what we produce is high quality and reliable,” said Bajaj.