Bajaj Auto up as govt issues draft notification on quadricycles

MUMBAI: Shares of Bajaj Auto gained momentum in trade today after the government issued a draft notification that seeks to classify the quadricycle as a commercial vehicle under the Central Motor Vehicles Rules.

The draft notification allows use of quadricycles for transporting passengers as well as goods on non-highways. It says the vehicle must have a fully-enclosed body with a steering wheel, and that an empty quadricycle must not weigh more than 450 kg if used for transporting passengers and 550 kg if it's is made for carrying cargo.

At present, Bajaj Motors is the only automobile maker in India that has developed a four-wheeled passenger carrier, the RE60, and plans to launch it by the end of this fiscal.

Analysts expect final notification on quadricycle in October. Bajaj Auto may start selling RE60 soon post approvals.

Tata Motors, TVS Motors, Maruti Suzuki and Mahindra & Mahindra have opposed the idea of quadricycles.

At 09:45 a.m.; the stock was at Rs 1,947, up 1.86 per cent, on the BSE. It touched a high of Rs 1,949 and a low of Rs 1,920 in early trade.