Friction in the Factory: Bajaj Auto’s ₹75 Crore Standoff

Bajaj Auto is evaluating a partial shift of its electric vehicle (EV) manufacturing away from Maharashtra and may direct future investments to other states, amid a dispute with the state government over nearly ₹75 crore in pending subsidies and curbs on new auto-rickshaw permits, according to sources.

The company is exploring the option of expanding its EV manufacturing at its Pantnagar facility in Uttarakhand. It is also assessing opportunities to invest in states that provide clearer policy support and incentives for electric mobility.

The situation has drawn interest from competing states, with officials from Karnataka and Tamil Nadu reaching out to Bajaj Auto to attract its upcoming EV investments. These states are looking to strengthen their electric mobility ecosystems and secure a larger share of EV supply chain developments, sources added.

News by Rahul Yelligetti.