No Approval Yet, But Bajaj Auto Hopeful Of 2017-End Launch Of Quadricycle Qute

After a two-year wait, Bajaj Auto Ltd. is hopeful of a policy breakthrough that will pave the way for launching its quadricycle ‘Qute’ by the end of 2017, RC Maheshwari, president of the company’s commercial vehicle division, told BloombergQuint.

First seen in 2012 Auto Expo in New Delhi and formally unveiled in September 2015, the quadricycle, initially named RE60, has seen its launch delayed multiple times in the absence of permits from the Indian government.

The government has so far not taken a call on permitting the quadricycle, a senior official in the Ministry of Heavy Industries and Public Enterprises told BloombergQuint requesting anonymity. The aspects of its safety and fuel emissions are being looked into by the Automotive Research Association of India, he said without offering any timeline for the approval.

The Qute, powered by a 217cc, single-cylinder petrol motor, comes without most of the standard safety equipment on board. Norms for four-wheeler passenger cars in the country mandate safety checks, including frontal and side impact crash tests, which Qute failed.

Bajaj Auto argues that its quadricycle is not a car, but a safer upgrade from autorickshaws. The automaker had earlier said that it would be wrong to test the quadricycle based on standards that are expected of cars.

The vehicle was launched in 16 countries across Europe, Africa, South America, and the rest of Asia in September 2015. The company believes it’s been delayed for five years in India since it was first displayed in 2012. Its Managing Director Rajiv Bajaj has publicly expressed his dismay.

“If your innovation in the country depends on government approval or judicial process, it will not be a case of ‘Made in India’, but ‘Mad in India’,” Bajaj had said earlier this year. “After five years, we are still waiting for permission to sell our four-wheeler in the country.”

Also Read: Why Bajaj Auto’s Quadricycle Experience Has Made Rajiv Bajaj ‘Mad In India’

In terms of sales volumes, the Qute has had limited success in the 16 countries it was launched in. Bajaj Auto, which invested over Rs 500 crore for developing the product, exports less than 100 units a month.

Maheshwari said those markets took time to warm up to a new segment of vehicles. Autorickshaws were launched in the 1960s but the market had then too taken a long time to accept the new mode of transport, he said.

Will Bajaj Auto consider shutting down the platform if approvals stay pending beyond December 2017? No, said Maheshwari. The automaker is also working on developing an electric variant for the Qute, he said.

The company doesn’t have any timeline to unveil the electric Qute. Research and development for it has started, Maheshwari said. Qute is available with a petrol engine and can house a compressed natural gas add-on kit, if required.