Quadricycles get nod after 6-year battle within automobile industry to stop Bajaj’s product
Shares of Bajaj Auto were up by 3% at Rs 2,875 per share on the BSE in an otherwise weak market after the company announced its plan to expand 3 wheelers & quadricycle capacity to 1 million per year as Government announced an end to permits.
At the Society of Indian Automobile Manufacturers (SIAM) convention on Thursday, the Minister for Transport, Nitin Gadkari made a historic announcement moving to a "no-permit" regime for auto rickshaws powered by alternative fuels.
Over the last 12 months, there has been an upsurge in three-wheeler demands in India, owing mainly to permits released in Maharashtra, Karnataka, AP, and Delhi. Consequently, during the period September 2017 to August 2018 Bajaj Auto has sold 435,000 three wheelers representing a growth of 88% and has strengthened its leadership in this segment.
“Bajaj is the market leader with 86% market share in the alternate fuel 3 wheelers. This announcement is a further fillip for the Bajaj Qute, which comes with CNG / LPG fuel options, as more and more state governments approve the Qute for taxi applications,” Bajaj Auto said in a press release.
At 09:26 am; Bajaj Auto was trading 2.8% higher at Rs 2,861 on the BSE, as compared to 0.29% decline in the S&P BSE Sensex. A combined 226,452 equity shares changed hands on the counter on the BSE and NSE so far.