Founded in 1945, India’s Bajaj Auto first sold imported two- and three-wheeled scooters before obtaining a license from India’s government to become a manufacturer in its own right, in 1959. Today, the company is India’s second-largest motorcycle producer, selling nearly three million vehicles annually and operating in more than 50 countries.

Since 2005, Rajiv Bajaj has been managing director of the company his grandfather founded. Educated in both India and Britain, he has been instrumental in focusing Bajaj Auto on motorcycle manufacturing, driving down costs and raising productivity in the company’s operations while investing heavily in research and development. In this interview with Laxman Narasimhan, a director in McKinsey’s Delhi office, Rajiv Bajaj discusses the transformation of Bajaj Auto, what can be learned from its experience in emerging markets, and its effort to expand internationally.