Industry Overview:
Even in times of current Slowdown, SCV segment is performing well for the last couple of years. Many domestic & Foreign OEMs are eyeing this segment where Tata Motors is the current market leader. Small commercial vehicle Industry can be broadly divided into two category:
- Four Wheeler
- Three Wheeler
Four Wheeler segment is continuously growing due to its stability, safety, low pollution, comfort, value for money etc. On the other hand three wheeler segment is continuously shrinking due to its instability, low comfort, less safety compare to 4 wheeler etc. Tata Magic, Mahindra Four wheeler passenger vehicle has proven to be a good replacement for three wheeler passenger vehicles.
Four Wheeler Passenger Segment – Trend
As per ACG study four wheeler passenger segment would grow in double digit. There is good opportunity for vehicle like Quadricycle.
Three Wheeler Segment – Trend
As per ACG study, the segment will de-grow further in the times ahead. ACG has done primary survey on Quadricycle market acceptance. Most of the passenger would like to have such type of four wheeler, however they are also worried if the fare would be very much higher than three wheeler. The future of three wheeler would be bleak if four wheeler would be an option for owners/passengers.
After this concept, other OEMs are also interested to develop quadricycles. At the moment Bajaj RE 60 is the only vehicle of this kind in India.
Awareness v/s Acceptance
During ACG survey, at this stage people are not aware about this new product, however urban population is having at least some of the basic information about it.
Most of the population would like to have such kind of product. The reason are it can protect them from pollution, safety, better comfort compare to Auto-rickshaws. They are ready to pay even 10% more for this comfort. It can be good mode of daily city transportation.
Product Position:
It is expected that this product will priced at around 1.5 lakhs which is slightly higher than auto rickshaw price with better feature and specifications.
Bajaj RE60 Key Specifications
Bajaj RE 60 Debate
One of the hot issue in Indian Auto Industry. Last week Auto corporate houses divided into two category, one are favouring and other who are opposing it. Regardless there are two major issue still need to be clarified:
- Product position
- Government rules and frames
ARAI is yet to define which category the quadricycles should fall into. A new intermediate segment can be defined based on weight, size and seating capacity and accurate safety norms for urban environment must be defined. Furthermore the biggest debate is set to be about the vehicle weight at the moment.
Conclusion:
According to Nicolas Fronteau, founder and COO of Barcelona based APEEC Solutions, who had worked with many Indian OEMs in Embedded Electronic Systems; with RE60, Bajaj is taking on an ambitious challenge of addressing a new vehicle segment. Further challenges may come in the form of marketing the product, prudent technical innovation and after-sales. It is also interesting to see the response and impact on those who are used to personal 4-wheelers. Then the challenge is left to Bajaj oh how to integrate into this approach in future with the next vehicle variants.
Ultimately a new vehicle concept is good, but the Govt. should make clear policy about transportation system and what they want to achieve and how they achieve it. Once framework will be ready we would see many up gradations and variants in this segment. Ultimately customers/Passenger will get benefit.
Data Sources – ACG Databank
Very insightful article.
The vehicle is still seeking permission to get on to the road from government as other OEM’s like TATA and TVS has opposed the vehicle for failing to complete the safety norms and traffic problems it may create .
But certainly a good replacement for Auto considering the safety, pollution and noise issues of autos.
To the best of my information TVS was the first to came up with such idea of vehicle, but that time the idea was opposed by all other OEM’s including Bajaj. Correct me if I am wrong? And now Bajaj manufactured the same kind of vehicle.
Is the vehicle limited for commercial and city use only?
Today every Indian to think of the current usage pattern of 3w auto in urban space is for personal short distance travel not for long trips, however the comfort in auto is to reach fast in urban bumper to bumper traffic. Even this 4w auto comes it wouldn’t help in kind of traffic congestion in major cities due to bad / small / narrow roads within city limits.
My suggestion would be ideally this 4w auto is to replace with existing cars on the roads and making this as official transportation for people who travel in cars to offices daily, ideally there should be a scheme by all state governments to give permits to only organizations who support employee transportation and save national ex checker by stopping the usage of own cars where traffic and fuel spending is higher as they use for single person transportation.
In most of the cites still there is scope for replacing old 2 stroke auto’s which polluting the country with usage of re cycled 2T oil, government instead of arresting this problem going to create one problem to people.
Example: in HYDERABAD there are 1 lack 2 stroke auto’s out of this there only 80k allowed to travel in city roads these are run by either cng or lpg however these auto’s drink about 8ok litters of 2T oil (Most of them use Re cycled oil these oil cans sold on HYDERABAD streets for auto’s.
Government first should look at controlling these auto’s usage than allowing new innovative autos’ are call 4th wheel attached auto’s. this may be same across country as with using this only a auto owner / rented auto can earn his daily meal.
If People safety is needed they should work on removing all city bigger size busses and introduce small size busses which can be a last mile transportation to with safety not the one which supposed to a CAR to fight with NANO suddenly becomes 4w auto. Also they should remove all old auto’s asking manufactures to replace them with new 4 stroke auto’s.
All the People/ Passengers travelling in current auto’s should check getting in to auto if this auto is 4 stroke if not do they use genuine fresh oil or road side oil, this awareness would help auto drivers to change their mind set to replace those auto’s with 4 stroke auto’s. Same excise should be done all the NGO’s who work for GREEN India promotion / campaigns.
A very informative article. As a person who has developed automobiles for many years I feel Indians should be in a position to develop cars in the class of Nano. I do not know if quadricycles would be safe on Indian roads. Nano, however, is a different story–it is a very safe vehicle.
Quite informative & good product but I do not see the need creating one new segment to please one manufacturer. if it is replacement of three wheeler, we already have good replacement offered by manufacturers like Tata, Mahindra.
What are those products of Tata and Mahindra ? If you mean Nano , then not even rickshaw drivers will buy it
Very informative and interesting article on changing landscape of SCV in india. It is being watched closely.