The market is "over-regulated", which has led to an increase in the two-wheeler prices, Bajaj said.
The hike in prices would be about 30% in one-and-a-half years, he said while referring to the impact of the implementation of new emission norms. Automakers have stated that BS-VI models would carry a higher price tag compared to BS-IV vehicles.
Earlier, the Pune-based automaker announced the formal launch of its much-awaited Chetak electric scooter, at a starting price of ₹1-lakh.
It also announced the bookings, online and through select KTM stores, for the new vehicles from January 15 and deliveries from February-end.
Bajaj also said that while the government has announced GST on electric vehicles at 5 per cent, the vehicles with combustion engine continue to attract 28 per cent and it to be lowered to 18%. He also said he was not expecting much in the forthcoming union budget which could address the current issues industry is facing.
The electric variant of the iconic Chetak will initially be available in Pune and Bengaluru, it said.
"The return of the legendary Chetak now in a modern electric avatar is indeed a proud moment for all of us. From January 15 onwards Chetak will be available in two cities and this will mark the commencement of a new era in two-wheeler mobility," Rakesh Sharma, Executive Director, Bajaj Auto said.
The automaker had unveiled Chetak last October.
The company said the electric scooter will be available in two variants, Urbane and Premium.
While Urbane edition with drum brakes will be priced at ₹1-lakh, the Premium edition with disc brakes and luxury finish will be priced at ₹1.15 lakh, it said, adding, both prices are ex-showroom and inclusive of applicable subsidies, and exclusive of insurance and road tax, the company said.
To provide a seamless and convenient booking experience, customers can book the vehicle online on the Chetak website at an initial amount of ₹2, 000, the company stated.
According to Bajaj Auto, Chetak needs minimal maintenance with a service interval of 12,000 kilometres or one year (whichever is earlier) and comes with an overall warranty of 3 years or 50,000 kilometres (whichever is earlier) inclusive of the Lithium-Ion battery.
"Our objective is to provide an attractive and viable option to commuters with different needs and expectations through the Chetak range. To achieve this, we have offered a highly advanced and elegant looking electric scooter at an affordable price," Sharma added.