How Rahul Bajaj kick-started middle-class’s dream ride

(This story originally appeared in on Feb 13, 2022)

It was the middle of 1960s and Rahul Bajaj — who had been educated at Delhi’s prestigious St Stephens College and thereafter at Harvard Business School — decided to shift his base from a comfortable and plush life in Mumbai to Akurdi in Pune.

Akurdi was a backward area then, but the company — which had obtained a license from the government to manufacture two and three-wheelers (in pre-liberalisation era) and a partnership with Piaggio to manufacture Vespa scooters — bought land in Akurdi to avail of financial support and benefits for its factory.

Not many had believed that he would last long in the rural area that lacked basic amenities, but he proved them all wrong as he not only made Pune his home right till the time he breathed his last, but ensured that the area become one of the most prominent industrial zones in the country.

As Bajaj Auto, the company that he built, never really looked back since, navigating the control raj and the post-liberalisation era while emerging as one of the most profitable auto companies in the world with a market cap in excess of Rs 1 lakh crore.

Today Bajaj Auto — run by Rahul’s elder son Rajiv — is not only one of the biggest motorcycle makers in the country, but also holds a strong position in key export markets.

What Rahul Bajaj really got into the company from his early days was a strong leadership and a clear strategy, along with voice and focus. As consumers faced a tiring waiting period of over 10 years to get delivery of the company’s famed range of scooters including the Chetak during the control raj, he never feared to raise his voice when it was required the most.

But while Bajaj Auto managed a strong run through the 1970s, 80s and the 90s, the company faced one of its biggest challenges when the market started gravitating towards four-stroke motorcycles even as Bajaj continued to focus on its scooter range.

Bajaj Auto came back, and strongly at that. The company’s Pulsar became one of the iconic motorcycle brands in the country. Bajaj managed to carve out its own in the premium categories.