Bajaj Auto Thursday said it plans to expand its 3-wheeler and quadricycle capacity to one million per year following the government's decision to exempt EVs and automobiles run on alternative fuel from permit requirements.
The Pune-based auto major is the market leader with 86 per cent market share in the alternate fuel 3-wheelers.
"Bajaj will shortly enhance its production capacities of 3-wheelers and quadricycles to one million per year," Bajaj Auto said in a statement.
According to them, the demand for 3-wheelers in the country has seen a surge in the past 12 months owing mainly to permits released in Maharashtra, Karnataka, AP and Delhi, Bajaj Auto Ltd (BAL).
Earlier in the day, addressing the SIAM (Society of Indian Automobile Manufacturers) convention in New Delhi, union transport minister Nitin Gadkari announced that electric vehicles (EVs) and all vehicles including auto rickshaws, buses, taxis run on alternative fuel will no longer require permits.
The decision will further give a fillip to Bajaj's quadricycle Qute, which comes with CNG/LPG fuel options, as more and more state governments approve it for taxi applications, the company said.
Between September 2017 and August this year, Bajaj Auto had sold 4.35 lakh 3-wheelers, registering a growth of 88 per cent over the year-ago period, the release said.