Three wheeler market:
Indian Three wheeler market, for financial year 2012-13 had registered a growth of 5% in comparison to last financial year. This has been mainly helped by those states granting new permits added with the good performance in the passenger segment which has shown 9% growth. Bajaj Auto, Atul Auto and TVS has shown positive growth rate in FY 2012-13 compare to last FY.
In Passenger vehicle segment, Bajaj Auto, has sold 223,287 units in FY 2012-13 taking their sales figures up by 26,146 units compared to last FY. Bajaj Auto is the market leader with 51% market share. Mahindra & Mahindra is at number 3 with 10% market share, M&M need to revive its products offering and marketing strategy.
In Goods vehicle segment, Piaggio Motors sales fall to 51,107 units from 58,043 units during last financial year. Meanwhile M&M and Atul Auto had slightly improved their sales performance.
Piaggio continues to be the market leader in this segment with 52% market share. In this segment Piaggio is the market leader from couple of years. Even though a considerable market share is lost to the Tata Ace four wheeler.
Export Market : Passenger Segment
The overall export in passenger segment has taken a considerable downfall with major player Bajaj Auto suffering a de-growth. Their export figures stay at 253,926 for this financial year 2012-13 as against 312,176 units last year. Notable TVS improves slightly as well as gaining market share.
Export Market : Goods Segment
Every year a few vehicles are exported in the three wheeler goods segment and there has been no notable variations in terms of sales figures or market share percentage.
In an attempt to raise stiff competition to the market dominance of Bajaj Auto in Passenger three wheeler segment Piaggio has launched Ape City. Ape City is available in CNG, LPG and Petrol variants.
Piaggio has launched its Porter product in two variant, first is 600 cc which is in the category of Tata Ace and other is 1000cc which is in the category of Ashok Leyland Dost. These arrivals will continuously encourage a considerable market share shift in the three wheeler goods segment.
The curious case of Bajaj RE60
Bajaj's new quadricycle, the RE60 is poised at taking over three wheeler intra city transport segment in India. The manufacturers claims it to be low cost and it has low Co2 emission. Bajaj RE60 weighs 450 kg and is 2.75m in length and now they are at the centre of the a heated debate.
Karl Slym, the managing director of Tata Motors tweeted “Why? The government and industry have been accelerating efforts in traffic safety & environment, now we consider Quadricycle. Why go backwards? The number of wheels do not automatically make us better. It is adherence to tried and tested emission norms.” Shinzo Nakanishi, MD, Maruti Suzuki says, “Regulations should comply with the existing norms of the four wheelers, that is our stance. There should be safety and emission as they are for all four wheelers.”
One may wonder if its an attempt to put the model off the Indian market. However RE60 is getting all the attention even if its for right or wrong reasons. Many Asian and African countries had expressed their interests in the vehicle and will be soon at Bajaj's plant to inspect the product. Anyways the government is set to come up with the final rules on quadricycles. Have it meet the standards we believe RE60 has every potential to take substantial market share from the three wheeler market.
Thanks “ACG Analysis Team and SIAM” for the stats and figures.