Bajaj Mobility (BMAG) Investor update summary

Context and response to media allegations

• Recent media reports alleged systematic placement of illegal motorcycles on public roads, focusing on enduro models, which represent about 3% of annual sales (about 6,000 units).

• Management and industry sources emphasize that all motorcycles are sold in a homologated, road-legal state, compliant with European regulations, and any competition retrofit is done post-sale by dealers at customer request, voiding road approval.

• The company firmly rejects allegations of fraud or emissions violations, highlighting that enduro motorcycles are designed for off-road racing, not street use, and that dual-use homologation is standard industry practice.

• Independent journalists and motorsport communities are reframing the issue, supporting the company's position.

• Customers are clearly informed that competition retrofits void street legality, a practice reviewed by lawyers multiple times.

Legal and regulatory considerations

• No current legal actions have been initiated, but the company is consulting media lawyers and monitoring the situation.

• No evidence of binding EU regulations prohibiting technical changes for racing purposes; regulations apply to street use, not competition.

• Management sees no immediate legal or financial risk, as all motorcycles leave the factory compliant with homologation standards.

Financial and reputational impact

• No financial provisions or accruals are planned, as management believes no wrongdoing occurred and governance is robust.

• Enduro models are a small fraction of sales, with high pre-order rates and even waiting lists, suggesting minimal sales risk.

• Management believes the publicity may even have a positive effect due to strong brand loyalty among racing enthusiasts.

• No evidence of significant customer dissatisfaction or reputational damage; most buyers are aware of the product's intended use.