Bajaj Auto to begin exports of RE60

Mumbai: Bajaj Auto Ltd is set to begin exports of the RE60, India’s first quadricycle, after it got all requisite approvals from a European certification agency. The RE60’s launch in India has been delayed due to public interest litigations filed against its launch which are still being heard in the Supreme Court.

Against that backdrop, the go-ahead to begin exports to Europe comes as a significant relief for Bajaj Auto.

Earlier this week, the RE60 got a certification under the European Whole Vehicle Type Approval (EU WVTA) regulations. The certification was done by Bengaluru-based TUV Rheinland India, a subsidiary of the Germany-based TUV Rheinland group and a leader in testing, inspection, certification and training.

The certification allows Bajaj to export the model to all the countries that follow the European regulations, said Rakesh Sharma, president of the international business at Bajaj Auto, in a phone interview.

“Its a significant milestone for us,” said Sharma.

At home, Bajaj Auto is plugging the quadricycle as an alternative to the auto rickshaw that comes with four wheels instead of three.

Bajaj has already started production of the model and will commence shipments soon, he added, while declining to comment on expected volumes or destination for exports.

The company will elaborate on the plans at a press conference in Delhi on 25 September, said Sharma.

In December 2013, the ministry of road transport and highways created a new category of vehicles called quadricycles. It was followed by a law ministry notification that cleared a plan that allowed the use of quadricycles on Indian roads, paving the way for Bajaj’s ambitious project.

But it didn’t work out that way.

Last year, a series of public interest litigations filed in the high courts of Delhi, Andhra Pradesh, Tamil Nadu, Karnataka and Gujarat stalled the launch of the model in India. Petitioners against the quadricycle include autorickshaw drivers and unions, and in some cases, even lawyers, Mint reported on 6 January. The respondent in the case is the road transport ministry.

With the consolidated PILs having moved to country’s apex court, the fate of launch in India hinges on the Supreme court’s ruling. The next hearing is in mid-October.

Bajaj has invested Rs.550 crore to develop the quadricycle. It has created capacity to produce 5,000 vehicles a month at its Aurangabad plant in Maharashtra. The RE60, which can seat four passengers, can run 35km on a litre of fuel and reach a top speed of 70km per hour, according to the company.

To be sure, the quadricycle is not new to controversies and has been facing hurdles from the time Bajaj announced its plans. The company had positioned the quadricycle to lure buyers away from three-wheelers and offer safer and affordable transport options to city commuters.

Rival auto makers including Tata Motors Ltd, Maruti Suzuki India Ltd and TVS Motor Co. Ltd opposed the vehicle, citing safety concerns. There were also questions over its specifications.

Equity analysts tracking the company said one cannot make much out of this approval as it would be tough for Bajaj to make inroads into Europe, a mature market, with this kind of offering.

“Getting an approval is one thing and appealing to buyers is another,” one analyst said on condition of anonymity.

Bajaj Auto’s shares closed at Rs.2240.24, down 0.79%, on Wednesday. The benchmark BSE Sensex closed at 25,822.99 points, up 0.67%.