Quadri-cycle export gains to roll in next year: Bajaj

Company had last month said exports of $2,000 Qute to be commenced from September end

Though Pune-based Bajaj Auto has started exports of the quadri-cycle Qute, any significant impact will be witnessed only next financial year, said an official of the firm.

Exports of the $2,000 (Rs 1,30,100) Qute will be initially to more than 16 countries in Latin America, Africa, Europe, and Asia. Meanwhile, the industry awaits a Supreme Court verdict on it. There is a series of public interest suits against the Qute’s launch.  

Kevin Pius Dsa, chief financial officer, Bajaj Auto, said in a analyst call, "It is not going to be significant (volumes) at all for 2015-16, given the fact that the Supreme Court order is yet to be received, and therefore I would say that it (the Qute) is more a 2016-17 story and will not have much impact on revenues and profits in the current year."

The petrol-powered commercial four-wheeler has received positive response from foreign markets, where sale of quadricycles is allowed. However, the maker of Pulsar and Discover motorcycles declined to share the actual export numbers of the Qute.  

"We have sent it across (to export market). So, naturally, the feedback will come in and then fresh orders will be placed", added Dsa.

The company looks to export 100 units of the Qute per month initially. This will be scaled up in 2016. The Qute remains the only quadri-cycle from India to meet European norms.

The company participated in the Ceylon Motor Show in Sri Lanka in June, where it showcased the Qute. Sri Lanka is one of the largest three-wheeler markets for Bajaj Auto, and the company intends to launch the vehicle in the island-nation.  

At Rs 1,30,100, the Qute is a bit less costly than Bajaj’s passenger three-wheeler vehicles sold under the RE brand.

Though the company has not disclosed operating margin targets for the Qute, analysts are confident that exports will help shore up margins. Presently, Bajaj's three-wheeler range drives one of the best margins for the company.

Bajaj had first shown the Qute (then named RE60) three years ago at the 2012 Auto Expo, pitching for a new segment for intra-city transport.

Thereafter the ministry of road transport and highways gave the green signal for creation of the new vehicle segment in late 2013. However, PILs filed in different high courts including in Andhra Pradesh, Gujarat, Delhi, Karnataka to name a few against it ultimately stymied the proposed launch.