Following transport minister Nitin Gadkari’s announcement at the SIAM annual convention today about moving to a “no-permit” regime for autorickshaws powered by alternate fuels, Bajaj Auto has announced plans to increase its production capacity of three-wheelers and quadricycles to 1 million units per annum.
This means the company will increase its existing three-wheeler manufacturing capacity of 660,000 units at the Aurangabad plant by around 52 percent to hit the 1-million mark.
Bajaj Auto is the market leader with 86 percent market share in alternate fueled three-wheelers and will look to maximise gains with the new policy development.
According to the Pune-based company, the past 12 months have seen an upsurge in three-wheeler demand in India, mainly due to permits released in Maharashtra, Karnataka, Andhra Pradesh and Delhi. Consequently, during the September 2017 to August 2018 period, Bajaj Auto has sold 435,000 three- wheelers, representing a growth of 88% and has strengthened its leadership in this segment. The company currently has a 58.78 percent domestic market share in three-wheelers.
Meanwhile, the new development will give a boost to the Bajaj Qute quadricycle, which comes with CNG / LPG fuel options. Expect state governments to approve the Qute for taxi applications.
On the export front, Bajaj Auto says its three-wheeler and Qute volumes in international markets continue to grow at a growth rate of 65 percent YTD.
Also read: Bajaj Auto plots aggressive strategy to gain market share