REGULATORY · MARKET STRUCTURE · COMPETITIVE · INDIA
Bajaj Auto considers shifting EV manufacturing from Maharashtra
Change
Bajaj Auto is considering moving part of its EV manufacturing and future EV investments out of Maharashtra after a dispute over about ₹75 crore in unpaid subsidies and auto-rickshaw permit restrictions.
Why it matters
Bajaj Auto is exploring shifting a portion of its EV manufacturing expansion to its Pantnagar facility in Rudrapur, Uttarakhand. The company is considering directing new EV investments to states offering clearer policy support and incentives. The dispute centers on roughly ₹75 crore in unpaid subsidies and restrictions on new auto-rickshaw permits. Through Chetak Technology Ltd, Bajaj Auto has invested around ₹750 crore in its Akurdi facility in Pune, which serves as the Chetak electric scooter manufacturing and R&D hub.
Implications
- · Reallocation of planned EV capital expenditure and manufacturing expansion to non‑Maharashtra facilities, including possible expansion at Pantnagar (Rudrapur).
- · Active engagement by rival state governments, including Karnataka and Tamil Nadu, to secure upcoming EV investments.
- · Outstanding subsidy arrears and permit restrictions remain unresolved factors in Bajaj Auto's investment decisions.
Who is affected
- · Automaker corporate management and investment decision teams
- · State economic development and industry officials
- · Manufacturing plant managers and production staff
- · State investment promotion agencies
Source
Topics
World & Politics Policy & Regulation Business & Markets Supply Chain & Logistics Manufacturing