Bajaj Auto, Piaggio and M&M plans to invest on 3 wheelers segment

Bajaj Auto, Piaggio and Mahindra & Mahindra - one of the majors makers of three-wheelers also, are on the investment drive.

They all are defending their turf from the onslaught of small trucks. In fact they are stepping up investments on additional capacity, newer models of three wheelers.

Here is the information on auto industry's smallest segment by sales volumes - three-wheelers account for a meager 3.6 per cent of India's total automobile market. It has been kept afloat by robust sales of passenger carriers, where a 26 per cent volume growth between April and November this year more than compensated a 3 per cent decline in the goods carrier segment.

The managing director (MD), Piaggio Vehicles, Ravi Chopra said, "We see a lot of growth opportunity. The Italian company, which sells products such as the Ape three-wheeled light commercial vehicle in the Indian market, plans to ramp up capacity at its Baramati plant and add new products to its existing range."

"Improving road infrastructure is opening up markets for FMCG and other sectors. Three wheelers have an opportunity here for last mile connectivity in the rural and semi-urban segments even as the metros move to smaller four-wheelers for goods movement," added Chopra.

According to such comments it feels that three wheelers will continue to retain some sweet spots. Along with Chopra's company there is Bajaj Auto who is also looking to ramp up in the three wheeler segment.

Bajaj Auto ' who is the dominant player in this segment with a market share of 60 per cent, plans to boost its capacity to 35,000 units a month from 30,000 units now. "Bajaj Auto's focus in the three-wheeler business is on its area of strength, as an intra-city passenger and goods carrier," said the CEO of Bajaj Auto's three-wheeler business, RC Maheshwari.

To this the president, M&M's automotive sector, Pawan Goenka added, "We will continue to grow in the three-wheeler segment, in spite of competition from four-wheelers."

With all such developments taking place, industry experts see an impact in volume growth in the near term with three-wheeler makers planning a price hike to cover the expenses to meet emission norms.