Nod for quadricycle boosts sole maker Bajaj Auto - Daily News & Analysis

The Ministry of Road Transport and Highways on Wednesday approved quadricycles, a new four-wheeler category between three-wheelers and entry-level cars that divided industry opinion. The central motor vehicle rules will be amended accordingly and relevant norms notified soon, the ministry said. According to people familiar with the development, quadricycles will be allowed only for taxi and cargo purposes on Indian roads – meaning, they cannot be used as personal vehicles. The government has also cleared the proposed 450 kg weight for quadricycles, much lighter than the earlier proposed 700 kg, and said the new vehicle class will have to meet the European Union safety norms. Wednesday's approval is expected to benefit Bajaj Auto Limited (BAL), the country's biggest three-wheeler manufacturer. For, BAL is ready with its RE60 quadricycle model, its first in the category. It showcased the EU-compliant quadricycle at the Delhi Auto Expo last year. "We are delighted. A door always opens a crack before it opens wide," Rajiv Bajaj, MD of BAL, told dna. A BAL-led section of the industry has been lobbying hard for introduction of quadricycles on Indian roads, saying it can replace three-wheelers as a safer mode of intra-city travel. "We are happy with the government's decision. We will launch the RE60 in a few months now," said Ravi Kumar, senior vice-president, business development, BAL. However, according to experts, the government's decision to limit the new category to commercial use might impact the future prospects of BAL's ambitious project. "We don't even know what will be the market size for a product like this. It can be too small. A lot depends on different factors like whether three-wheeler drivers would like to replace their existing vehicle with a quadricycle. Also, approvals of regional transport offices will be the key," said an analyst with a domestic brokerage firm. Companies such as Eicher Motors and Mahindra and Mahindra (M&M) have also shown interest in developing quadricycles, ministry officials said. "We do not have any products right now that meet the quadricycle requirement. But we would certainly look at this category as we plan our future product portfolio," said Pawana Goenka, president, automotive and farm equipment sectors, M&M. But other auto majors such as Maruti Suzuki, TVS Motors and Tata Motors have not been in awe of the quadricyle concept, citing safety issues and probable impact on sales of entry-level cars like the Alto and the Nano. In fact, on April 25, Tata Motors MD Karl Sylm tweeted: "Why? The Govt.+ industry have been accelerating efforts in traffic safety & environment, now we consider Quadracycle! Why go backwards?" via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGUhjgEVl9rEShiAIT8oMZi6xII2Q&url=http://www.dnaindia.com/money/1838362/report-nod-for-quadricycle-boosts-sole-maker-bajaj-auto

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