The Hindu Business Line : ‘Nano may impact petrol-driven auto-rickshaw sales’

Experts are divided over whether the Tata Nano would affect the market for auto-rickshaws (3-wheeler passenger vehicles) or not. However, the predominant view appears to be that the ‘people’s car’ might dent the market for petrol-driven three-wheelers, though the diesel version could hold its market, due to better fuel economy.

Many feel that it is reasonable to assume that commuters might prefer a closed vehicle to travel to an open one like the auto-rickshaw, in conditions where the speed is not an issue.

While the Nano costs Rs 1.3 lakh ex-showroom, the average price of auto rickshaw, both petrol and diesel, is around Rs 1.2 lakh. While the Managing Director of Bajaj Auto Ltd, Mr Rajiv Bajaj, declined a comment, Mr Ashutosh Khosla, the Director-Sales of Piaggio Vehicles Pvt Ltd, told Business Line, “It may affect the petrol auto rickshaws and not diesel vehicles since the fuel efficiency of diesel auto rickshaws were far better. The diesel three-wheeler could give around 34 kmpl, he added.

The DGM (Finance) of Gujarat based Atul Auto Ltd, Mr Hiren Doshi, felt that it was too early to comment on this. However, it might affect petrol and not diesel three-wheelers as the latter offered better fuel economy, he added.

However, Mr V.G. Ramakrishnan, Director – Automotive & Transportation, South Asia and Middle East, Frost & Sullivan, a consultancy firm, said Nano could affect both petrol as well as diesel passenger auto rickshaws.

“Except for the incremental cost on using petrol as fuel and the lesser mileage that Nano gives, compared to three-wheeler, I think it (Nano) can threaten the auto rickshaw segment,” he said.

A source from Kerala Automobiles Ltd said Nano would certainly affect the prospects of three-wheelers. “Auto rickshaw per se is a means of transportation for common man and if he (common man) could get a cost effective option like Nano, at an affordable cost, he might own it and not prefer auto rickshaw anymore. This will eventually hamper the demand,” the source added.

Would the Nano be a preferred vehicle for taxi drivers? “It depends upon the manufacturer’s philosophy,” Mr Ramakrishnan said. “More than 90 per cent taxi usage is for commuting with light luggage. I believe that Nano can enter the taxi segment,” he said.

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