At the launch of the first CNG-operated three-wheeler here on Monday, Bajaj Auto executive director Madhur Bajaj said, ``The company is stepping up production of CNG-operated three-wheelers from 500 units in June to cross 1000 units in July."

Bajaj Auto is also phasing out all two-stroke three-wheelers over the next two to three years, company chairman Rahul Bajaj said. "The only two-stroke three-wheelers now being produced are fit with catalytic convertors, and these will also be phased out in one year,'' Bajaj added.

The company is currently producing rear-engine petrol autorickshaws at its Aurangabad plant, which has a capacity to produce 450-500 units a day. The vehicle is priced at Rs 81,916 in Delhi. Powered by a 175cc 4-stroke single OHC engine, the CNG auto delivers excellent fuel efficiency of more than 50 km per kg of CNG under actual running conditions.

The company, he said, is expecting great demand for its CNG three-wheelers in view of the Delhi government's decision to replace all pre-1990 autorickshaws with cleaner vehicles.

The company will supply to the market in the Capital as there is no rule in Mumbai yet. The vehicle delivers excellent fuel-efficiency of more than 50 kms per kg of CNG under actual running condition, he added.

The running cost would be about 25 paise per km which is one-fourth of the cost of the petrol-run three-wheelers, Bajaj said.