Bajaj Auto Ltd. has announced plans to enhance the production capacity of three-wheelers and quadricycles to capitalise on positive developments happening in the sector, a top executive said.
“Bajaj will shortly enhance its production capacities of three-wheelers and quadricycles to 1 million per year,” Rakesh Sharma, chief commercial officer, Bajaj Auto, said in a statement.
The automaker’s decision is influenced by the Union Government’s announcement to release permits and end permit system for three-wheelers run on alternative fuel.
“Over the last 12 months, there has been an up-surge in three wheeler demand in India, owing mainly to permits released in Maharashtra, Karnataka, Andhra Pradesh and Delhi. Consequently, between September 17 and August 18, Bajaj Auto has sold 4,35,000 three-wheelers representing a growth of 88%,” Mr. Sharma said.
“At the SIAM convention, Minister for Transport Nitin Gadkari made a historic announcement moving to a “no-permit” regime for auto rickshaws powered by alternative Fuels. Bajaj is the market leader with 86% market share in the alternative fuel three-wheelers and is therefore delighted with this development,” he said
“This announcement is a further fillip for the Bajaj Qute, which comes with CNG / LPG fuel options, as more and more state governments approve the Qute for taxi applications. Alongside, our three-wheeler and Qute volumes in international markets continue to grow at 65% year to date,” the company said.