New York: Bajaj Auto Ltd's recently announced plans to build a four-wheel vehicle to transport goods within a city are based on the changing nature of transportation in India and present a huge opportunity, a senior company executive said.
The niche for small four-wheeled goods carriers is new and Bajaj rival Tata Motors Ltd has an advantage because it was first in the market, said Sanjiv Bajaj, executive director at the family-controlled company.
But he said Bajaj's vehicle will be significantly different.
"It's going to be a multiple application product which will cut across price points," Bajaj said in an interview after a presentation at the third Annual India Investment Forum sponsored by Merrill Lynch and Institutional Investor in New York.
"We believe it's a huge opportunity." Bajaj declined to discuss the engine size or the planned price of the new vehicle, which will be the company's first vehicle with four wheels.
Bajaj, India's second-largest motorcycle maker, in August announced plans to invest Rs 20 billion in a new plant near an existing facility close to Pune.
The plant will initially turn out 100,000 units and will be able to ramp up to 500,000, Bajaj said.
With trucks getting bigger in India and city congestion tightening in cities, a niche for a small goods carrier was launched by Tata, Bajaj said.
But that early advantage does not faze the company, he said. As for the company's motorcycle line, its main manufactured product, Bajaj said overall market penetration is low at 5 per cent and the company needs to find a way to finance vehicle sales in rural areas.
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