Bajaj to go strong with 3-wheelers

Passenger cars and cargo vehicles are seeing a lull in the market in tune with the global slowdown. However India’s automotive major Bajaj Auto Ltd seems to be taking no heed.

Market sources have said that that the auto giant is set to launch four new vehicles after September and stay among the top players in India. Among the four new launches planned, it is expected that Bajaj is lining up two goods carriers and two new passenger vehicles. However, it has not been confirmed whether the planned vehicles include a four wheeler.

According to Bajaj Auto top brass, the new proposed launches are in line with the company’s efforts at competing in the transport segment. With the plans almost on track, the company would see itself a prominent competitor among smaller vehicles such as autorickshaws and mini trucks. Bajaj Auto’s business, which mainly comprises its three-wheelers, accounts for 12 per cent, of the total 2.4 million vehicles sold by the company in 2007-08.

The fall in passenger autorickshaw sales has hit the company. With the government issuing just a limited number of permits the sector has been on a dull phase. State governments have put a cap on the number of fresh permits for autorickshaws because of congestion and pollution concerns.

Added to this the shift in market dynamics toward sub-1-tonne four-wheelers has hit the cargo carriers. The industry is increasingly going for cargo carriers like Tata Motors Ltd’s Ace mini-truck. Bajaj Auto’s mini truck will compete with the Tata Ace, Piaggio’s Ape Truk, and Force Motors’  M4.

The industry has already seen the three-wheeled cargo segment pos a fall by around 28 per cent. However, Bajaj Auto feels that three-wheelers will be back with a bang as prices for cars and mini-trucks are on the uptrend. This along with higher interest rates, operational costs and fuel charges would help three wheelers come back to original position, as the need for lighter vehicles that can easily transport people and goods will only grow, the company believes.