MAXIS – Bajaj RE60— Is It A car?

SPECIAL REPORT/AUTO EXPO 2012| Jan 3, 2012 | 907 views

Bajaj RE60 Is It A car?

byAshish K Mishra|

An anti-car guy makes a four wheeler. You can buy it if you want one. But then you are not Bajajs core customer

+Comment now

mg_63244_bajaj_re_280x210.jpg
Image: Amit Verma

No. Its not. Rajiv Bajaj, managing director of Bajaj Auto would like you to believe that the RE 60 is a four-wheeler but not a car. RE stands for Rear Engine, a term used commonly for Bajajs three wheelers. It, of course, has a steering wheel, four doors, four wheels, headlights, tail lights, seat belts and seating capacity for four. An additional feature though is the three-wheeler (auto rickshaw) meter. In the words of Bajaj, This is a vehicle for all the people who use a three-wheeler almost everyday. It is a four-wheeler which is a dramatic improvement on the three wheeler.

His core market then is the auto rickshaw segment. Bajaj hopes that state after state will gradually replace the 5 million auto rickshaws plying in the country. We are the worlds largest three-wheeler manufacturer. [Management
guru] Jack Trout told us something; the leader should do more. It is only right. He urged us to do something dramatic with the three-wheeler, like we did with the Bajaj Chetak to [come up with] the Pulsar.

The RE 60 will go on sale later this year which is when the price will be announced. Lets not talk about looks right now, because thats subjective. But it looked a lot like the Reva.

The RE 60 is Bajajs answer to the green brigade. The companys corporate presentation to explain the vehicle concept showed an unhappy bird pained by pollution looking for answers. It found faults with the electric car and thought that a hybrid was too expensive. It finally found joy in the RE 60. Based on Bajaj Autos claims, this vehicle comes across as clean and efficient. It has the lowest CO2 emissions in the world and a mileage of 35 kmpl. It will also have a CNG variant.

It is interesting to see the kind of cost savings Bajaj has been able to achieve. The RE 60 will be manufactured at Bajajs three-wheeler plant in Aurangabad, Maharashtra. Bajaj now manufactures about 45,000 three wheelers per month. The RE 60 will share the line with the three-wheeler, and production capacity will be expanded. That alone is savings of about Rs. 350 crore, says Bajaj. While he declined to share the total cost of investment, he believes the RE 60 will maintain the groups mantra of returning a 20 percent margin.

The RE 60 will be exported to almost all markets where Bajaj currently sells its three wheelers. So that would be Asia, Africa and Latin America. Exports begin with Sri Lanka where Bajaj sells 10, 000 three-wheelers a month.

How about Bajajs partners? Renault and Nissan. Bajaj said that about a month back, Renault and Nissan saw the vehicle in a web presentation. This is a platform which has been totally designed and developed by Bajaj in Pune. I have always said that it is a four-wheel platform and not a car. At no point was Bajaj being a contract manufacturer of someone. With small or big modifications, we are ready to supply the platform to Renault-Nissan if they so wish, added Mr. Bajaj.

What about competition from the Tata Nano? Bajaj couldnt resist a dig at Tata Motors. I am not sure if the Nano is the cheapest car or gods gift to two wheelers but thankfully the RE 60 has a clear position.

Will the RE 60 become a goods carrier? In the sense, lets say a light commercial vehicle? Nope. Mr. Bajaj said the company doesnt want to get into moving goods because it is not what they do. Bajaj is happy moving people around. This was backed by an interesting logic shared by the man that is worth mentioning. He said Tata Motors is a truck company. So when a big truck company makes a little truck, people are happy to buy it. I am not sure if people want a want a small car from a truck company. I dont know if that will go down too well!

mg_63246_bajaj_re_in_280x210.jpg

RE 60 at a glance:
Engine:200cc water cooled, 4 valve DTS-i
Weight:400 kgs (almost half that of A segment small cars)
Power:About 20 hp (power to weight ratio is good so it should be peppy)
CO2 Emissions:60gms/km (one of the most efficient in the world)
Mileage:35 km/liter (claimed by Bajaj in normal riding condition)
Maximum speed:70 kmph
Turning circle radius:3.5 meters
Looks:Very similar to the Reva
Seating capacity:2+2

Read more:http://forbesindia.com/article/auto-expo-2012/bajaj-re60-is-it-a-car/31900/1#ixzz1iTfUGJG1

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s