Bajaj Auto to expand 3 wheeler and quadricycle capacities to 1 million a year as government announces no-permit regime

MUMBAI: India's largest three wheeler maker Bajaj Auto will be expanding its production capacities of 3 wheelers and quadricycles to 1 million per year as union minister for road transport and highways,. Nitin Gadkari on Thursday announced a "no-permit" regime for auto rickshaws run on alternate vehicles.

At the Society of Automobile Manufacturers (SIAM) convention held in Delhi, Gadkari on Thursday said that electric vehicles and alternate fuel vehicles used for commercial purposes will not require permit to ply on roads.

"We are also taking Bio-CNG into consideration," he added.


The announcement will especially give a fillip to Bajaj Qute, a quadricycle which comes with CNG/LPG fuel option.

Over the last twelve months, the auto industry has witnessed an increase in three wheeler demand in India, attributed mainly to permits released in Maharashtra, Karnataka, Andhra Pradesh and Delhi.

As a result, the automaker has sold 435,000 three wheelers, charting a growth of 88% and strengthening its leadership in the segment.

Bajaj's decision to expand stems from its market leader position in the alternate fuels 3 wheeler space with a 86% market share.