Maharashtra government removes cap on taxi / auto licenses: Angel Broking

Mr.Shrikant Akolkar (Research Analyst- Auto & Auto Ancillary, Angel Broking): “The 20-year old ban on issue of fresh licenses for autos and taxies in Mumbai and other major cities of Maharashtra is being lifted. Now the Maharashtra State Transport department will be permitted to issue fresh licenses to autos and taxis. Many old permits had not been renewed as taxis and autos in Maharashtra are facing stiff competition from operators like UBER and Ola. We believe that this is expected to see increase the demand for autorickshaws which is expected to benefit companies like Bajaj Auto which is the largest autorickshaw manufacturer in India.”