While going through NY Times, I stumbled upon the launch of India's Bajaj Auto's new 4 wheeler called RE60.  Turns out that instead of position this car to consumers, Bajaj is positioning it as the replacement to three wheel Auto Rickshaws.  However, in my opinion it is a poorly positioned product which will face some significant adoption challenges. To begin with lets quickly compare the pictures of the two vehicles.

Bajat Auto's Recently Launched RE60 (via NYTimes.com)

Auto Rickshaw via the BeigeRoom.com

Now, why do I think that it is a poorly positioned product?

1. As it is obvious that RE60 drives like a car with a steering wheel where as an auto rickshaw drives like a scooter which is balanced with 3 wheels instead of two.  In order to adopt RE60, the auto rickshaw driver will have to give up his scooter's license and learn a new way to drive a vehicle which drives like a car.

2. Most of the Auto Rickshaw drivers are daily wage earners who rent/lease their rickshaw on daily or weekly basis. They will not have the time or financial resources to retrain themselves to drive a new type of vehicle.  This is the biggest barrier to adoption.

3. An auto rickshaw is mainly designed to navigate through overcrowded streets and narrow alleys of the Indian cities. RE60 wont' be able to deliver the same navigation experience.

4.  An auto rickshaw driver has mainly two ways to charge the customer a) by meter b) by the number of heads riding the rickshaw.  In Tier-3 and Tier-4 cities most of the rickshaw drivers make money by maximizing the number of heads.  Sometimes up to 10 per ride.  With RE60 that won't be possible as it can fit only 4 or 5 including the driver.  

5. Last but not least, an auto rickshaw is a cultural icon which most of the Indians and foreigners take pride in riding.  I have done it numerous times while growing up in India and even now whenever I go for a visit. 

It is fun to ride , works great in the hot Indian weather without any airconditioning and is eco-friendly.  Do Indians really need an alternative?

Sorry Bajaj Autos, this is a great way to screw up your existing product line.