“Instigated, I think...I won’t like to say by whom,” Kevin D’Sa, its president (finance) told analysts.
Bajaj is the only company in India to have developed a quadricycle. Suits have been filed by entities or individuals claiming the lightweight vehicle offers no more safety than a three-wheeler.
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Targeted at passengers of three-wheelers, Bajaj Auto had planned to commercially launch its quadricycle, named the RE60, in October last year. The central government had given a go-ahead for creation of this new class of vehicles, targeted at intra-city transport.
Slightly more expensive than a three-wheeler but substantially less than regular city taxis, such as the Maruti Omni or Hyundai Santro, the quadricycle was positioned as an effective replacement of the three-wheeler. Bajaj Auto also happens to be the largest producer of passenger three-wheelers in the country.
The four-door and hard-bodied quadricycle, with speed restrictions, would not be allowed on highways and will be discouraged from sale for private use. The delay in commercial launch is costing Bajaj Auto dear, as it is losing the first-mover advantage. It has already invested Rs 550 crore on developing the RE60 and had created an annual production capacity of 60,000 units at its Aurangabad factory.
Mahindra & Mahindra and Piaggio, both of which have experience selling in three-wheeler and four-wheeler cargo and passenger applications, have also expressed interest in building quadricycles. Tata Motors is also believed to be working on one.
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