Bajaj Auto to change quadricycle strategy; plans to export product to Sri Lanka, Egypt

Friday, 24 April 2015 00:57 - - {{hitsCtrl.values.hits}}

MUMBAI: Even as its yet to be launched quadricycle that will compete with autorickshaws, faces a slew of legal challenges in India, Bajaj Auto, after a three-year wait has decided to shift focus to export the four-wheeler passenger vehicle to traditional export strongholds such as Sri Lanka, Egypt and Nigeria. In an interview, Rajiv Bajaj, managing director, Bajaj Auto, said he was extremely keen to launch the product first in India, hoping that the category will get an approval soon, however, the uncertainty over how long the legal cases take to conclude in India, has forced the company to change plans. “We would have been very proud to launch it here. But now we believe that we have to look at overseas markets. One does not know for how long the matter will continue to languish in the courts. And therefore, in the next few weeks, we are starting production for the exports market,” he said. Bajaj Auto,which exports almost 60% of 50,000 three-wheelers produced in India in a month, says all the overseas markets, especially Sri Lanka, Nigeria and Egypt, are keen on the product. The company has started the process of seeking approvals, he added. But even as he begins preparation for an overseas rollout, Bajaj is keeping an eye on the case which comes up for hearing on Wednesday. Recently, the government who is party to the case had filed a petition in the Supreme Court seeking transfer of several writ petitions filed in various high courts. Bajaj felt some rivals equate the quadricycle to a car was a deliberate attempt to “muddle” the issue. To say that the vehicle, which is so small, so light and so slow is a car, is getting their facts wrong, says Bajaj. “This is being done by some vested interests. For me, it is a superior three-wheeler,” he added. India’s largest three-wheeler maker said the case before the court is peculiar because nowhere Bajaj Auto has been marked as a respondent. Bajaj Auto has suffered as it has been over a year since this new category of vehicle has been approved by the Government of India. The legal wrangles have however delayed the roll-out of vehicles on Indian roads. Bajaj says over the last three years, since the company showcased the vehicle at 2012 Auto Expo, it has been awaiting approvals to introduce the vehicle. “Whether it is on-ground investment, in development, in terms of factory, in terms of suppliers, workers and supervisors, one can imagine the kind of losses the company incurs,” Bajaj hinted but declined to elaborate. Bajaj Auto had approached ARAI for the approval of quadricycle, which is at an advance stages, the process had stalled for a brief while, after the cases were vacated by regional courts to Supreme Court, ARAI has resumed the approval process and it will be concluded shortly. (Economic Times)