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Old 16th February 2012, 13:31   #1
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Default 3 wheeler for the price of a 4 wheeler, WHY?

I am talking about our rickshaws, also known as Autos. After speaking to some rick drivers, I came to know that a Bajaj RE 4S costs close to 1.7 Lacs on road. RE 4S CNG costs more!


That's almost the price of a Nano which is a proper 4 wheeler with 4 doors, AC, steering, etc.

Why does the rick cost so much?
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Old 16th February 2012, 13:40   #2
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Default Re: 3 wheeler for the price of a 4 wheeler, WHY?

My guess would be a huge amount attributable towards registration, route permits, etc. (permits are widely black-marketed) which pushes up the On-road price to over twice the Ex-Showroom price which used to be southwards of INR 1 lakh (80-90k or thereabouts). As is the case with Taxis, you have to show a valid route permit first before buying/taking delivery of your rick.

Last edited by mi2n : 16th February 2012 at 13:41.
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Old 16th February 2012, 13:45   #3
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Default Re: 3 wheeler for the price of a 4 wheeler, WHY?

It's always been like that. Ricks have not been cheap. I was also told that the segment gives the manufacturers good margins too.
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Old 16th February 2012, 14:03   #4
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Default Re: 3 wheeler for the price of a 4 wheeler, WHY?

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Originally Posted by condor View Post
It's always been like that. Ricks have not been cheap. I was also told that the segment gives the manufacturers good margins too.

Maybe this is why Autowalas charge us such whopping sums for small distances.Probably the costs would be lesser for own-use auto rickshaws than the public transport ones.
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Old 16th February 2012, 14:13   #5
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Default Re: 3 wheeler for the price of a 4 wheeler, WHY?

But an Autorickshaw is way better than a car. You have the space of a 4-wheeler and the manueverability of a 2-wheeler. It can go places where no other vehicle can tread ( except perhaps a Mars-rover). Infact in a place like Bangalore, it also give you respectability and you join a powerful brotherhood. Everyone gives way to the autorickshaw.
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Old 16th February 2012, 14:45   #6
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Default Re: 3 wheeler for the price of a 4 wheeler, WHY?

The higher price is not because of the additional cost but due to higher profit margin they maintain.
If at all Nano has been given for commercial purpose, this game would have been changed and those crappy three wheelers would have come to 5digit price band.
Good that Nano was not promoted for that !
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Old 16th February 2012, 14:50   #7
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Default Re: 3 wheeler for the price of a 4 wheeler, WHY?

Nano has doors, a rickshaw does not thereby increasing seating capacity
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Old 16th February 2012, 15:08   #8
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Default Re: 3 wheeler for the price of a 4 wheeler, WHY?

I had discussed this topic with some people in commercial transport business and came to know that the answer by mi2n (post#2) is the correct answer.
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Old 16th February 2012, 15:08   #9
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Default Re: 3 wheeler for the price of a 4 wheeler, WHY?

My idea is that it is not remarkable that the an auto costs so much, it is remarkable that the Nano costs so little!

What is the situation with buying an auto for non-commercial use? One sees a few with "private" painted on them, and the colour of choise in Chennai is often blue rather than standard yellow. How are these bought without permits? Is the price still the same?

Last edited by Thad E Ginathom : 16th February 2012 at 15:09.
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Old 16th February 2012, 15:08   #10
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Quote:
Originally Posted by wildsdi5530
You have the space of a 4-wheeler and the manueverability of a 2-wheeler.
It is this maneuverability that has scraped my car bumpers n number of times and once even my mum's foot.

In a God forsaken Auto not more than 3 passengers can fit (unless you are in a village where the kids are even accommodated on the 'fence' of the Auto.)

Not to mention the other issues during rains, cold weather, pollution and spittle from overhead truckers (yes I remember seeing that once). It is clearly the monopolistic pedestal that these 3 wheelers enjoy aided by their union leaders who own and lease out that has allowed the disproportionate pricing!
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Old 16th February 2012, 15:29   #11
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Default Re: 3 wheeler for the price of a 4 wheeler, WHY?

Quote:
Originally Posted by DevilsCry View Post
I had discussed this topic with some people in commercial transport business and came to know that the answer by mi2n (post#2) is the correct answer.
So does that mean the ex-showroom price of the Auto is very very less?
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Old 16th February 2012, 15:30   #12
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Default Re: 3 wheeler for the price of a 4 wheeler, WHY?

Quote:
Originally Posted by Thad E Ginathom View Post
My idea is that it is not remarkable that the an auto costs so much, it is remarkable that the Nano costs so little!...
Nano is the face for India's frugal engineering and development.


Quote:
Originally Posted by DevilsCry View Post
I had discussed this topic with some people in commercial transport business and came to know that the answer by mi2n (post#2) is the correct answer.
Quote:
Originally Posted by raj_5004 View Post
So does that mean the ex-showroom price of the Auto is very very less?
The price quoted by showroom(ex show room) does not include permit cost.
The permit cost is added after that.

Last edited by Ashley2 : 16th February 2012 at 15:36.
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Old 16th February 2012, 15:44   #13
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Most of the auto wallas do not know the procedure involved and documents required for getting, first the permit and second, the registration etc. Hence they go by the agent route.
These agents charge anywhere between 30-40 grands and make sure everything gets done for the auto walla, including a loan.

Mind you, getting a permit for an auto is no easy job.

I know this coz our maid's hubby used to drive an auto on a daily rent of 150 rs + all accidental/incidental charges, + petrol. So I suggested her to own a new one instead of paying rent etc. And then they ultimately did buy and told us the that what would ideally cost 1.3-1.4L cost them 1.7-1.9, but also mentioned that without using these agents its impossible to get a permit, etc.
So what the auto wallas tell you as cost, is infact cost +agent commission, and not merely the cost of the Rick and permit.

Edit: also the permit is in the name of the person and not the Rick. These permits are also rented out. Many do the mistake of buying an auto on someone else's permit. Once the person withdraws his permit, the auto is of no value. Many such you will find as abandoned/unattended at Vashi, below one of the flyovers.

Last edited by vinit.merchant : 16th February 2012 at 15:48.
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Old 16th February 2012, 15:57   #14
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Default Re: 3 wheeler for the price of a 4 wheeler, WHY?

Quote:
Originally Posted by raj_5004 View Post
So does that mean the ex-showroom price of the Auto is very very less?
Yes, a typical Bajaj RE 4S used to cost 90k rupees around 4 years ago. Including inflation, I assume it to cost around 1.1-1.2 lac now.

vinit.merchant's post is also correct. Obtaining permit is quite messy for an auto-rickshaw. Once one gets to know all about permits, he becomes a bit sympathetic with auto rickshaw drivers.
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Old 16th February 2012, 19:45   #15
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Default Re: 3 wheeler for the price of a 4 wheeler, WHY?

Quote:
Originally Posted by lamboguy View Post
It is this maneuverability that has scraped my car bumpers n number of times and once even my mum's foot.

In a God forsaken Auto not more than 3 passengers can fit (unless you are in a village where the kids are even accommodated on the 'fence' of the Auto.)
That's precisely the advantage I'm talking about. You can scrape through almost any situation in an auto.
And I remember once during my college days, 9 of us medical students returned back to the hostel from a movie in a single auto. Imagine doing that in a nano.
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