Bajaj Auto board approves of Rajiv Bajaj as MD, Rahul Bajaj to stay chairman

10 March 2005

Pune: The board of directors of Bajaj Auto has approved the proposal to appoint Rajiv Bajaj as managing director of the company at its board meeting yesterday.

Rahul Kamalnayan Bajaj, 66, will step down as managing director of Bajaj Auto passing on the mantle of the company to his eldest son, Rajiv.

Rahul Bajaj will continue as the chairman of the Bajaj conglomerate. Bajaj Auto is facing increased competition from Honda and Piaggio. Honda has overtaken Bajaj as India's No.1 scooter maker in the past two years.

Rajiv, 38, who was previously the joint managing director, will serve a five-year term as managing director from April 1 according to a statement by the company. A mechanical engineer with a masters degree in science from the University of Warwick in the U.K is largely credited with positioning Bajaj Auto as a serious contender in the motorcycle market.

He joined the company in 1990 and became the joint managing director in 2003.

Shares of Bajaj Auto gained 0.6 per cent at Rs1,095 in Mumbai today. The stock has lost 3.2 per cent this year.