RE60 - HAMARA BAJAJ?

By Research Desk
about 10 years ago

By Ruma Dubey

Bajaj Auto had earlier called it a “small car” but now, we all know it’s a new breed of vehicle –neither an auto nor a car; it’s a quadricycle. Known as RE60, sounding more like a sci-fi machine in RaOne, the vehicle was to earlier be in direct competition with Tata’s Nano but now, Nano as such is no competition to anyone and Bajaj has created this new space for itself though this new vehicle will be one for the masses. Well, if Ratan Tata could be inspired to launch a car because he saw a family of four precariously balanced on a  two-wheeler, why not a new public transport vehicle from one of India’s largest two-wheeler makers?

This is more like a four wheeler ‘autorickshaw’. The company launched it in January 2012 but at that time, it was positioned as a small car but it was later not legally classified as a car due to its weight, top speed and other specifications, including safety standards. Thus it could not be sold to individuals. And that’s how it became a quadricycle from a small car. So if the Nano was for people to upgrade from two wheeler to small car, this RE60 will be an upgrade from 3-wheeler auto to 4-wheeler auto. Well, the company gets miffed it it’s called a ‘4-wheeler auto’ thus it actually got the Govt to come up with a new classification of vehicle – quadricycle.

What warms the heart is that there will now be two “cars” from Indian manufacturers and it is targeted at the very real people of India, not upper middle class or the ultra rich. Tata Nano is pure Indian bred and so in RE60. Bajaj had earlier formed an alliance with Nissan and Renault but that was soon called off. So now we could soon have new hatchback auto’s plying across the cities, carrying the tag of ‘Bajaj’ and that sounds good! Buland Bharat ki buland tasveer…..

This vehicle was to be launched in 2012 but its classification – neither a car nor an auto, got it into trouble. Well, the Govt made a new classification for quadricycle and this will come into effect from 1st October and that is when Bajaj plans to launch RE60.  Piaggio and Mahindra too will roll out their versions of Quadricycles, following Bajaj’s footsteps in October.

If it is for low-cost public transport, pricing will be key. Keeping this in mind, RE60 is to be priced somewhere more than an auto but less than a car – around Rs.1.5 to 2 lakh. Bajaj’s cost for developing this vehicle was Rs.550 crore and its plant at Aurangabad has the capacity to make up to 5000 vehicles per month. It will run on both petrol/diesel as well as CNG.

And in a country driven by mileage, where a prospective yacht buyer is also more bothered about the mileage, Bajaj, in a television interview, was quoted saying that the new car will give a mileage of 40kms per litre! Hope they know this is a 4-wheeler they are talking about and not a two-wheeler?

All Quadricycles will come with a label ‘Q’ on the body and help authorities in restricting them to operate in areas predefined for them. Moreover, they are barred from plying on highways and restricted to a maximum speed of 70 kmph/hour. The quadricyle does not look great, in fact post its public unveiling, it did not get too many compliments on the looks department. Most found it dowdy, looking something like the old Fiat but with a swollen lip! And the jokes have also begun – “if it does not start, just tilt it and kick it!”

The company see’s a big market – wherever there are three-wheelers, it feels it has a market.  Apart from all over India, it is also looking at exporting to other ‘auto’ countries like Sri Lanka, Kenya, Thailand; places where it already has a brand presence.

The question, which is now on everyone’s mind, is, “Will Quadricycle replace the auto rickshaws for short-distance, intercity travel?”

Initially, yes, this might happen. Gradually, as people’s curiosity will end and practicality will set in, the quadricycle, which cannot be driven on highways, might become a ‘touristy’ thing. Autos are today too wide spread a means of transport and RE60 can never match the price of an auto. Thus auto’s will continue to rule and RE60’s will be just another new mode of public transport.

Piaggio Vehicles, the wholly owned subsidiary of the Italian Piaggio Group is the world’s biggest manufacturer of quadricycles. The company believes that India has a long way to go before pegging quadricycles as ‘the’ new mode of transport. For a country like India, where pollution is one of the major concerns, the quadricycle will be a more fuel-efficient vehicle with cleaner emission compared to the passenger three-wheeler autos.  

Will the launch of RE60 mean we have to re-rate Bajaj Auto? Looks like it. We might be able to see the effect of this new vehicle percolating into the numbers of Bajaj Auto only in FY16. But this quadricycle is the much required breath of fresh air for Bajaj Auto. And kudos to Bajaj for bringing in a new classification of vehicles!

But yes, come October and our Indian roads could get just a wee bit more crowded.

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