Auto Monitor I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S
Vol. 13 No. 18
w w w. a m o n li n e. i n
27 May 2013
WEST INDIA SPECIAL
Pg 14-25
INTERVIEW
Pg 10
40 Pages
INNOVATION
`50
Pg 08
“We have problems with suppliers”
Unperturbed Minda
Dinesh Tyagi, Director, iCAT
Minda’s strategies and plans
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Govt nod for quadricycles Nabeel A Khan New Delhi
D
espite strong opposition from certain leading vehicle manufacturers in India, the Ministry of Road Transport and Highway have approved the use of quadricycles on Indian roads. The four-wheeled vehicle can be used for commercial purposes, as an upgrade from three-wheelers, but not as a personal vehicle. Describing the vehicle as being safer than three-wheelers, the government gave its nod to the new vehicle segment. Tata Motors had strongly opposed the plan, terming it a “backwards” step, while others described it as highly polluting. However, leading three-wheeler manufacturer Bajaj Auto, who showcased their RE60 quadricycle concept at the last Auto Expo in Delhi, is delighted with the announcement and hopes to be the first to bring out a product in the segment. Bajaj Auto is said to have invested `550 crore in developing the platform and created the capacity to produce 5,000 RE60 units a month. The new segment
will eat into the three-wheeler segment. The small four-wheeler segment (less than one tonne) has already taken away a chunk of the three-wheeler business. In 201112, three-wheelers constituted 2.9 percent of the total automobile market. The matter has created a rift in the the vehicle manufacturer community. “We tried to reach a consensus on the subject but could not reach it, so we would not like to make any comment on this,” said K.K. Gandhi, Executive Director (Technical), Society of Indian Automobile Manufacturers (SIAM). Apart from Bajaj Auto, Mahindra & Mahindra and Eicher Motor have also been supporting the move. Dinesh Tyagi, Director, Internationa l Centre for Automotive Technology (iCAT), who framed the regulations for the quadricycle vehicle category, told Auto Monitor, “It’s a concept which exists in Europe. These vehicles are mainly used by those whose vehicles are impounded or have broken down. But in India the purpose of introducing quadricycles is to provide better transportation for the masses.”
Bajaj RE60 quadricycle
Under iCAT guidelines, the ministry has cleared the proposed 450 kg weight for quadricycles, much lighter than the earlier proposed 700 kg, and stipulated that the new vehicle class will have to meet European Union safety norms. “Innovation is important for the auto industry and the key factor is how the customer sees the product. The market is there and it is rapidly growing, so there will be an opportunity for this product also. It may hamper the three-wheeler
Dinesh Tyagi, Director, iCAT
market or it may create its own space in the market place. It will all depend on the kind of product that comes to the market,” said Abdul Majeed, Automotive Practice, PwC. To address concerns about safety and emissions, the ministry has suggested that quadricycles be registered under the commercial transport category for intra-city movement. Also, to distinguish them from cars, the ‘Q’ symbol must be displayed on the body of these vehicles.
Dinesh Tyagi interview, pg. 10 “A separate category has been proposed for notification to include quadricycles, with specifications adopting present norms notified in the three-wheeler category of the Central Motor Vehicles Rules (CMVR), or the European Union quadricycle, whichever is more stringent,” the ministry said in a press statement.
Atul Auto to launch Gemini-Dz in June Anand Mohan Mumbai
A
tul Auto is launching its first 0.35 tonne threewheel passenger carrier, the Gemini-Dz, on June 5 at Kollam in Kerala. It is priced at `1.35 lakh, ex-showroom Kerala. The loca-
t ion of the launch, says Paul Za karia, VP Marketing at Atul Auto, was strategically chosen since Kerala is one of their largest markets outside Gujarat. The Rajkot-based three-wheeler manufacturer has had a pres-
ence in the state for the past three years, and has 14 dealerships there. (Gujarat accounts for 45 percent of Atul Auto sales.) The Gemini-Dz, like other Atul Auto models, is powered by Greaves Cotton diesel engines. The unit used here is a 395cc BS3 motor. Greaves will be supplying engines for the next seven years. In addition to the diesel model, the company is planning to launch a CNG variant in October this year. The launch of the Gemini-Dz was scheduled for March, but was postponed due to a delay in procuring approvals and installation of the new assembly line. Atul Auto has 148 dealerships across India. With the launch of
the Dz, the company expects a sizable increase in market share, and is planning to increase dealership count to around 200 by the end of this financial year. “The size of the small three-wheeler segment is approximately 9,000 units per month. We plan to capture 10-15 percent of this market by next year,” says Zakaria. The strongest regions for Atul Auto have been Rajasthan and Gujarat. The company is present in 18 states right now, and is seeking to increase its footprint. They plan to enter Tamil Nadu soon, in the process covering the whole of South India. Another region where the company plans to make big inroads is Maharashtra. The
state is a stronghold of Bajaj and Piaggio, and the company sees it as a challenge. But they want to step in nevertheless in order to be a national player. The 0.35-tonne segment is the biggest three-wheeler number churner, accounting for about 50 percent of the entire 3-wheeled segment. At present, Bajaj RE is the largest player here, dominating the segment. For the 2012-13 fiscal year, the company has posted a standalone net profit of `25.92 crore, compared with `15.60 crore a year ago, an increase of 66 percent. During the year, the company sold 32,040 vehicles, compared to 27,000 units last year, a growth of 18.67 percent.