[TusharK]

According to Bajaj Auto, demand for 3-wheelers has seen a rise in the last 12 months. Therefore, the company plans to expand its 3-wheeler and quadricycle production capacity to 10 lakh units per year.



This comes in the wake of a recent announcement made by the Government to allow auto rickshaws powered by alternate fuels to ply without the need for a permit. This is further expected to boost demand in this segment, including for the Qute quadricycle, which is offered with both CNG and LPG fuel options. Bajaj currently has an 86% market share in the alternate fuel 3-wheeler segment.

Sales of 3-wheelers are on the rise in Maharashtra, Karnataka, Andhra Pradesh and Delhi as fresh permits have been released. During the period of September 2017- August 2018, Bajaj sold 4,35,000 three-wheelers, registering a growth of 88%. 3-wheeler and Qute volumes in the international markets are also growing at 65% year to date.

Link to Team-BHP News

[TaurusAl]

I cant believe this. In era of airbags, abs, and tonnes of safety features in other vehichles, this rickety and highly unsafe vehicle is still produced in lakhs and is still in so much of demand in Metros.

[anjan_c2007]

Bajaj has hurriedly exited the scooter segment a few years after the turn of the last century, due to their ageing model, based on the 1950's Vespa 150. Its survival/ model life compulsions and their inability to come up with something as successful were the reasons. Plus the NextGen Bajajsons decided against, when their erstwhile "ScooterKing" Dad favoured staying on in the scooter segment. It was a great gamble then by the Bajajsons to restrict production to only motorbikes.

The vacuum created by Bajaj in the scooter segment was very soon filled up to the brim and even more, by the entry of Honda Motorcycles and Scooters Ltd (HMSL) with their launch of the Honda Activa in 2001. The Bajaj four-strokes starting with the Chetak 4S, Legend, Stride and Kristal (sorry if I have missed out any scooter from the then confused Bajaj Auto, who were changing names and models but sticking with the same mechanicals though, almost every year !).

The Japanese soon gained a full grip on the scooter segment with Suzuki and Yamaha also taking up tiny pies of the market share. TVS Jupiter etc and Hero Pleasure, Maestro and etc etc too have lately created a good presence.

The point is that Bajaj missed the bus, when it exited the scooter segment. The demand was still strong. Only a good product needed to have been launched. But wrong products made Bajaj pull the curtains. At present the Honda Activa outsells the Hero Splendour as the "most sold" two wheeler on many ocassions. Hence, if Bajaj had stayed on with a popular replacement for the Super/Chetak (Bravo too), they would have been much higher in he sweepstakes as the second or the third largest two wheeler maker in India.

Bajaj's present strategy is to offer a discounted price on the 100-125 cc mass selling bike segment, with the cheapest bike price tags. This is not a long term solution, as their quality too has to be superb. The Tata Nano was offered as a cheap car and it bombed. Four wheeler buyers in India shunned the "Cheap" tag as has been much evident. But the economically lower strata of the society, who are in the millions, buying two wheelers are left with almost no options other than buying a cheap bike. But with the living standards rising, this may again not be the best option to survive in the 100-125 cc segment with the "cheap" tag as a permanent saviour.

And they are concentrating more currently on the 150 cc plus segment, where they have gained a foothold with the Pulsar/ Dominar/ KTM range. The 150 cc plus segment may see them survive, but in the long term, their quality needs to parallel the best in the class.

Originally Posted by TusharK

According to Bajaj Auto, demand for 3-wheelers has seen a rise in the last 12 months. Therefore, the company plans to expand its 3-wheeler and quadricycle production capacity to 10 lakh units per year.

Attachment 1797101

Sales of 3-wheelers are on the rise in Maharashtra, Karnataka, Andhra Pradesh and Delhi as fresh permits have been released. During the period of September 2017- August 2018, Bajaj sold 4,35,000 three-wheelers, registering a growth of 88%. 3-wheeler and Qute volumes in the international markets are also growing at 65% year to date.

Link to Team-BHP News

My post was incomplete and I am now commenting on the three wheeler scenario in India :

The three wheeler market is dominated by Bajaj, TVS, Piaggio, Mahindra, Atul and a few more smaller players. These carry upto 12 or more persons and the market in this segment is cartelised. With the highly unsafe structure and dynamics, these three wheelers are being continued to be manufactured since ages and also exported now. To compound our woes, overloading is the rule. In several cities and towns some of these ferry at least a dozen schoolchildren.

Here Bajaj can have great ambitions as this suits its outdated products (with new model names viz. Compact, RE, Optima, Maxima and also its Qute) costing upto Rs 1.5 Lakh each, to its targeted buyers and the very limited challenges this market offers. After all, Bajaj has been used to such a cartelised market for its scooters for three to four decades.

We can only pity the gullible passengers, who travel like they are packed into a can of sardines. And the can is delicate and liable to be annhilated upon impact, even by a light four wheeler !

It is surprising that two wheelers have the helmet rule, four wheelers the seat belt rule and soon to come NCAP ratings (airbags, crash impact zones and so on), but the government has done nothing to promote safety on three wheelers. A car carrying five persons is subjected to the NCAP safety norms come 2019/2020 (2019 for newer introductions and 2020 for existing car models), whereas a three wheeler carrying 12 persons is NOT.

Totally absurd policies and so the three wheeler makers' cartel fluorishes !

[GrammarNazi]

65% of the Indian population is engaged in farming. This year, thankfully, the monsoons have been reasonable, due to which our country's largely non-irrigated farmlands too have gotten rain. Although farming contributes to "only" 15% of the GDP, this may yield to a substantial growth in farmers income.

Majority farmers & farming workers would choose a mobility solution amongst other basic stuff.

Considering this, I would find the production expansion possibly fairly sustainable given that they're massive exporters too!

Whatsay?

[GTO]

Originally Posted by TaurusAl

In era of airbags, abs, and tonnes of safety features in other

Airbags & ABS are equipment for the top 1% of India. Period.

Don't expect developed country solutions for India. We are a country where 200 million people go hungry to bed each night. Cheap 3-wheelers are an important + crucial mode of transportation for lakhs of Indians. What's more, these are frequently overloaded to beyond their capacity. Reason? Affordability. The more people in a 3-wheeler rickshaw, the lesser the ticket price per person. And most people cannot even afford that! They walk the long distance instead.

Let's not view the world through rose-tinted glasses.