8:01 AM
Nikhil
NEW DELHI: The world's largest three-wheeler maker Bajaj Auto has unveiled its first four-wheeler, the RE60, a four-seater intra-city passenger vehicle. Fitted with a 200 cc petrol engine, RE60 is not a small car competing against the Tata Nano, but an urban passenger vehicle meant to compete with three-wheelers, Bajaj Auto MD Rajiv Bajaj said.
"As a marketing position, we are an anti-car company. Our core customers will be the ones who are the user of three wheelers," he said.
The vehicle-which Bajaj Auto had announced last year after scrapping its ultra low-cost car project-will hit the road in 4-6 months. Bajaj Auto redefined urban public transport in the country with its three wheelers in the early 1960s. It now wants its four wheelers to replace many of the more than five million three wheelers in the urban India landscape.
"The concept is not an incremental improvement but a dramatic one just like Pulsar replaced Chetak," Bajaj said. "Scooters were the roots of our success in the last century. Motorcycles defined our success in this century," he said, adding that the company expects such a change in city transport with the RE60.
Designed in-house in accordance with intra-city duty cycles and safety requirements, RE60 will be sold through its network of three-wheeler dealerships. Bajaj sees huge potential for exporting RE60 to Sri Lanka, Bangladesh and even Africa and Latin America where affordability levels are low.
In fact, the company may first start selling RE60 in Sri Lanka. Bajaj Auto exports 10,000 three wheelers in a month to Sri Lanka and 90% of them are used for personal purpose, Bajaj said. "That in itself indicates the potential in Sri Lanka alone."
"As a marketing position, we are an anti-car company. Our core customers will be the ones who are the user of three wheelers," he said.
The vehicle-which Bajaj Auto had announced last year after scrapping its ultra low-cost car project-will hit the road in 4-6 months. Bajaj Auto redefined urban public transport in the country with its three wheelers in the early 1960s. It now wants its four wheelers to replace many of the more than five million three wheelers in the urban India landscape.
"The concept is not an incremental improvement but a dramatic one just like Pulsar replaced Chetak," Bajaj said. "Scooters were the roots of our success in the last century. Motorcycles defined our success in this century," he said, adding that the company expects such a change in city transport with the RE60.
Designed in-house in accordance with intra-city duty cycles and safety requirements, RE60 will be sold through its network of three-wheeler dealerships. Bajaj sees huge potential for exporting RE60 to Sri Lanka, Bangladesh and even Africa and Latin America where affordability levels are low.
In fact, the company may first start selling RE60 in Sri Lanka. Bajaj Auto exports 10,000 three wheelers in a month to Sri Lanka and 90% of them are used for personal purpose, Bajaj said. "That in itself indicates the potential in Sri Lanka alone."
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Bajaj Auto has invited all its international distributors and government representatives of Sri Lanka, Bangladesh and Columbia to see RE60 at the Auto Expo and give their feedback.
Experts said RE60 might run into some regulatory hurdles. "There is a big gray area as to how this vehicle will be defined in India," an analyst at a domestic broking house said.
Abdul Majeed, automotive practice partner at Price Waterhouse, said Bajaj Auto will have to work along with regulatory authorities to get a suitable solution. "It is a new product, new segmenta¦ regulators should be able to clear it if there are no concerns," he said.
RE60 will be built at Bajaj's three-wheeler plant in Aurangabad with initial capacity of 200 units a day. The firm plans CNG and the LPG variants soon.
Bajaj Auto has posted highest EBIDTA in the industry of over 20% in the last nine quarters.
'OPEN TO ALL TIEUP OPTIONS'
The French-Japanese (Renault-Nissan) alliance partners, who have already seen the visual images of RE 60, will see the product in flesh at the Auto Expo, informed Rajiv Bajaj, MD of Bajaj Auto. "We will discuss the matters of co-operation only after Renault-Nissan sees the product in flesh."
The RE 60 passenger vehicle platform is a flexible platform and different products can be derived out of it, he added.
"If they wishe to use the same platform with small or big modification, they can. And if they are not interested, they can walk away. We are open to all the options," said Bajaj. Renault-Nissan inked JV deal with Bajaj in 200
Experts said RE60 might run into some regulatory hurdles. "There is a big gray area as to how this vehicle will be defined in India," an analyst at a domestic broking house said.
Abdul Majeed, automotive practice partner at Price Waterhouse, said Bajaj Auto will have to work along with regulatory authorities to get a suitable solution. "It is a new product, new segmenta¦ regulators should be able to clear it if there are no concerns," he said.
RE60 will be built at Bajaj's three-wheeler plant in Aurangabad with initial capacity of 200 units a day. The firm plans CNG and the LPG variants soon.
Bajaj Auto has posted highest EBIDTA in the industry of over 20% in the last nine quarters.
'OPEN TO ALL TIEUP OPTIONS'
The French-Japanese (Renault-Nissan) alliance partners, who have already seen the visual images of RE 60, will see the product in flesh at the Auto Expo, informed Rajiv Bajaj, MD of Bajaj Auto. "We will discuss the matters of co-operation only after Renault-Nissan sees the product in flesh."
The RE 60 passenger vehicle platform is a flexible platform and different products can be derived out of it, he added.
"If they wishe to use the same platform with small or big modification, they can. And if they are not interested, they can walk away. We are open to all the options," said Bajaj. Renault-Nissan inked JV deal with Bajaj in 200
