Bajaj Auto has been a dominant force when it comes to the three-wheeler segment in India. The company has had a good 2014 and expects to go a few notches up this year, driven by new product launches and commercialization of its eagerly-anticipated quadricycle RE60. Mr. R.C. Maheshwari, President, Commercial Vehicle Business, Bajaj Auto, shares details.
Excerpts:
Business in 2014
The year gone by saw Bajaj Auto consolidate its position as the 3-Wheeler Category Leader. Some highlights were:
a. Over 10% increase in 3-wheeler sale (505788 vs. 458569) on a gross level (Domestic & Exports)
b. Further enhancement of market leadership in India: Domestic volumes have surged from 2,02,806 units to 2,15,621 units year-on-year, taking Bajaj Auto’s market share in passenger 3-wheelers up from 54% in 2013 to 58% in 2014.
c. Development of India’s first quadricycle consistent with the CMVR notification issued by MoRTH announcing creation of the category effective October 2014.
Major plans for 2015
Product launches:
a. Commercial introduction of India’s first quadricycle early this year.
b. Further value enhancement in the RE branded 3-wheelers.
c. Entering the 3-wheeler cargo segment with a significantly differentiated product.
Expectations from the CV industry in 2015
We expect the industry to turn the corner by the second half of 2015. The initial signs are seen in heavy duty truck sales already and the rate of decline in LCVs and buses. Small commercial vehicles, including 3-wheelers, will continue to display robust growth buoyed by the improving economic climate.
Industry policies & developments expected in 2015
a) Continual decontrol of regulated permit regime for three-wheelers.
b) Enforcement of ‘End of Life’ norms in line with the stipulations laid down in the Motor Vehicle Act.
c) Stricter enforcement of mandated permissible seating capacity by local administrations to enhance passenger comfort, safety and vehicle performance.
The CV segment will increasingly get into the hub-and-spoke mode as the country’s infrastructure network matures. With increasing customer demands, there will be a greater emphasis on fuel efficiency and passenger comfort.