News Approved

this is bad news.............we already know, bajaj is exporting to african nations, but chinese also compete in african nations is a news to me...............btw..........anybody know what chinese brands are available.

My only question is, when this government has the guts to ask for 100% tax on imported vehicles, why can't they keep 10% subsidy or benefit for exports?

On one hand, ministers were saying that indian companies should be prepared for removal of protectionism policies. And their actions? They increased tax on CKD imports, and decreased benefits provided for exports!


I hope that African people understand that these chinese are no match for Bajaj's quality, the recent Vigbyor company being the biggest proof of the statement.
If this government bullsh*t continues, Bajaj would be forced to set up manufacturing plant for the entire African continent, somewhere there only.

Folks.. no need to worry, i'm seeing this from last 6 years, there isn't much done on that!! If this is done, Bajaj will probably shift exports production to their chinese plant.

By the way.. liked the below Q&A

Q: In the premium segment, you managed to gain market share. Going forward with competition from Yamaha and Honda with their new bike in the premium bike segment, do you expect to retain this 50% plus market share?

A: We have been competing with Honda and Yamaha for 20 years now which is not a new phenomenon. Our company’s strategy rests on certain principles.
The heroes in the market place are Scooty, Activa, Splendor, Discover and Pulsar (I think he missed Passion!). While competitors may throw lots of products at the market, but the only thing that works is to position brand sharply to create new categories.
None of the competitor seemed to have strategically created a new category that would upset Pulsar. For now, we are confident of our guidance.

This is very old news.. I had heard this interview on TV like 3 weeks back..

These concessions should be removed immediately, Bajaj is making huge profits and is known to have highest margins compared to industry standard.

Bajaj doesn't need the DEPB crutches to survive, Rajiv Bajaj is crying foul by saying Bajaj will get into horrific situation if DEPB is removed. Govt. is thinking of some other method to compensate by removing DEPB to ONLY labor intensive sectors like leather & apparel, but not for 2Ws/profitable sectors.

Cool down Vipin!! we understand your concern, but this is not something that's only offered for Bajaj.. all the exporters are entitled to these benefits. Is Bajaj stopping others from exporting their vehicles or from making profits?

Even Hero Moto, Royal Enfield and TVS can use the same 'DEPB Crutches' to earn industry leading profit margins, in effect bringing foreign exchange into India and reduce the trade deficit. Also, high profit for all 2-wheeler manufacturers means growth of the company alongwith shareholders and increase in jobs. Also increase in govt. revenue from income tax.

If instead due to this policy of GOI, Bajaj (and TVS and Hero Moto and Royal Enfield) moves the export oriented production to China instead, thats where all the money and jobs will go. It is not such a big deal for these companies to set shop in China instead of India, and the Chinese will always welcome any such investment in their country which will bring jobs with open arms.

Open your eyes buddy. Stop hating Bajaj / Indians so much that you close your eyes altogether.

P.S.: The reason ONLY Rajiv Bajaj is crying foul is because Bajaj is the biggest exporter of 2-wheelers in India and if any such move is taken by GOI, it will hit Bajaj profits the highest. Considering the volumes they do, a small plant in China instead of India would be enough to cover those losses using the DEPB crutches provided by the Chinese govt. for the benefit of their citizens.

Guys, You sound as if I have requested GOI to remove DPEB

Firstly, GOI says it is losing to the tune of 8,000 crores by DPEB, it wants to get away with it as GOI sees some sectors have no merit to get DPEB. If DPEB is applied it will apply to all 2W exports, be it hero,royal,bajaj HMSI etc etc. but there is a great advantage here.... Indian 2W has to compete in Africa on quality factor and not cost of the bike factor and should stop comparing themselves with Chinese, over period Indian 2W have to prove that Indian made 2W have better quality than China and for that Africans should be made to pay for the quality. This way it's great for Indian brand, Africans will say Indian products are better than Chinese and that's what Indian 2W should strive, Indian exporters will stand to gain in long term !!

PS : GOI needs money for many purposes for the upliftment of poor, it has right to remove concessions to certain sectors based on merits & demerits, 2W exporters should see light in every decision of GOI and not the other way !!

wah Vipin bhai, wah.. I appreciate your vision!! but you need to understand that as soon as this benefit is taken off, companies will simply move their plants to other locations(read China, Thailand etc.), where they have similar incentives. So, removing this incentive will back fire in the form of job loss & even bigger revenue loss.

Which world do you live in?
No Offence mate, I am not insulting you
By removing DPEB, GOI may earn 8K Cr. but when did GOI said that it will use this to uplift the poor?
I mean see any news channel, all GOI money being put in pockets of ministers and officers who are corrupt to their core

CWG, Aadarsh, 2G, Swiss Banks, etc.

GOI should look into thess matters rather than removing DPEB and troubling 2W Mfgrs!!!!

hmmm...I don't think the DPEB removal will affect companies so much that they move out of the country, this fear is unfounded. Moreover moving to China just b'cos of incentives is also illogical, what if they remove one fine day ? Rahul, Venu might have appraised their fears to GOI and are very powerful people, in spite of it if GOI is hell bent on removing DPEB, then there's merit in it's decision. As stated earlier, GOI is coming up with new scheme so that leather/apparel industries are not affected as they are highly labor intense.
Any concession is to be seen as 'reservation' , which is bad, unless it serves the purpose of uplifting the underprivileged. Bajaj / Hero /TVS are big conglomerates there's no merit in them depending on concessions unless they are into RED due to unfair competition, etc etc.

FYI, Bajaj has already got it's back-up plan ! hope you know Bajaj has it's plant in China ?! TVS also has one in Thailand !! In fact DPEB removal will affect Hero which is just studying export markets !!!

Of course, I know that.. that's the very reason why Bajaj & TVS will prefer moving exports production to those facilities, if at all this benefit is taken off.. it's very easy for them to do it.

Hmmm...probably they knew that one day the crutches will be taken off ?