Bajaj to invest Rs 650 crore in new manufacturing plant in Chakan

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Bajaj Auto sets up a 650 crore new manufacturing plant in Chakan.

Bajaj Auto is a two wheeler and three wheeler bajaj new manufacturing plant based in India. Over the last 75 years, the company has exported motorcycles to more than seventy countries in the world. Shri Kamalnayan Bajaj is the founder of Bajaj Auto and other sibling companies.

On 23rd December 2020, Bajaj Auto released an official statement about setting up Bajaj new manufacturing plant in Chakan. Chakan is a suburban and industrial area in western Pune.

The company has signed a memorandum with the Maharashtra Government regarding this new venture. The news about Bajaj Auto being the first company to cross 1 lakh crore market share value comes a week after the Chakan based 650 crore Bajaj investment plan.

Bajaj Auto is present in more than seventy countries. The company is the third largest motorcycle manufacturer and the largest three wheeler manufacturer.

About the Bajaj new manufacturing plant:

  • According to the memorandum, the company will start production at the new plant in 2023.
  • The manufacturing plant will solely focus on high-end KTM, Husqvarna and Triumph motorcycles.
  • Bajaj Auto had lately relaunched an electric scooter- Chetak will also be manufactured at the new firm.
  • The Maharashtra state Government will assist the company in getting permissions, fiscal incentives and clearances from different departments.
  • The latest venture will rejuvenate the company’s relations with the state of Maharashtra. ‘

High end KTM, Husqvarna and Chetak to be manufactured at new plant

KTM AG is an Austria based motorcycle and sports car manufacturing company. It is owned by Pierer Mobility AG and Bajaj Auto. In 2007, Bajaj Auto purchased 14.5 % stake in the company. Gradually, Bajaj Auto owned over forty five percent shares of KTM AG. KTM’s 125 cc models are the most exported ones in the market.

  • KTM 125 Duke – Rs 1.18 lakhs.
  • KTM 200 Duke – Rs 1.51 lakhs
  • KTM RC 200- Rs 1.89 lakhs
  • KTM 250 Duke – Rs 1.80 lakhs
  • KTM RC 390 – Rs 2.40 lakhs.
  • KTM 790 Duke – Rs 8.63 lakhs

Image Source : https://ktm.bajajauto.com/

Husqvarna Motorcycles

Husqvarna Motorcycles is a Swedish origin company which designed, manufactured and distributed motorcycles. 

The company began the manufacturing process in 1903 at a place called Husqvarna. In 2013, KTM acquired Husqvarna from the BMW Motorrad AG. Today KTM group includes the KTM motorcycles and Husqvarna model. As Bajaj Auto owns 48 percent shares with KTM Group, the manufacturing of Husqvarna is going to be a part of soon to be launched plant.

Image Source : https://indianautosblog.com/

Chetak

The Bajaj Chetak was a household name from 1972 – 2006. However, Bajaj Auto stopped manufacturing the scooter in 2006. Bajaj Auto relaunched an electric bike in October, 2019. The Chetak production takes place at the Chakan plant in Pune.Selected KTM dealers plan to sell Chetak from January 2020.The bike is powered by 4080 W BLDC motor. The company claims that the bike will take five hours to charge and is available in Urbane and Premium variants. The starting price of the bike will be between 1 lakh – 1.5 lakh. 

Image source: https://www.chetak.com/

Bajaj New Manufacturing Plant in India

Bajaj Auto is an India based motorcycle manufacturing plant. The company has around four manufacturing plants in India. Most Bajaj Auto manufacturing plants are present in Maharashtra. There is a plant in Uttarakhand that takes care of only two wheeler manufacturing. The headquarters and plant is located at Akurdi in Pune. There are three manufacturing facilities in Waluj(Aurangabad), Chakan(Pune) and Pantnagar( Uttarakhand). The corporate office is located in Mumbai. The new manufacturing plant will be a new addition to the existing one in Chakan.

Bajaj is the world’s most valued two wheeler company (Bajaj New Manufacturing Plant)

As per reports on 1st January 2020, Bajaj has crossed the one lakh crore mark. With this, the two wheeler and three wheeler manufacturers have emerged as the most valuable two wheeler company. The company has closed in on each share at Rs 3479 that resulted in a capitalization of Rs 100670.76 crore. No other two wheeler company has achieved this accolade before.

Rajiv Bajaj, the Managing Director of Bajaj said “The company’s sharp focus on the motorcycle category and its unwavering commitment to strategies of differentiation as well as the practice of TPM combined with global ambitions have today made Bajaj the most valuable two-wheeler company across the globe. This inspires us even more to serve and delight customers all over the world”.

History – Bajaj Auto

  • In 1945, Bajaj Auto was established as Bachraj trading Corporation Private Limited.
  • In 1958, the company applied to the Government of India for manufacturing scooters and rickshaws.
  • The company obtained two and three wheeler manufacturing licenses in 1959 and formed into a public company.
  • Bajaj Chetak scooter was introduced in 1972.Motorcycles have been manufactured in India since 1986. The company had started export to more than 50 countries by 2008.
  • In 2015,Bajaj launched India’s first Quadricycle, Qute. Bajaj has now created a separate category of vehicles called Intra-city Vehicles. These are primarily for Intra-city transport & aid in first & last mile transport requirements.
  • The Bajaj Auto company signed an alliance and teamed up with Triumph motorcycles from 2017.
  • Bajaj will be producing personalized electric scooters for a rental startup company named Yulu.
  • In 2008, the parent company demerged into Bajaj Finserv Limited (BFL), Bajaj Auto Ltd (BAL), and Bajaj Holdings and Investment Ltd.

Image Source : https://www.bajajauto.com/

Bajaj Auto Exports

Bajaj Auto has a presence in more than seventy nine countries.Despite the pandemic situation, Bajaj Auto managed to maintain the export of its two wheelers and three wheelers. The below statistics clearly indicate that the company has contributed to 53.10% motorcycle exports in 2019-20. Infact, the export percentage saw a 1.42 percent increase from previous years. Around forty percent of the company’s exports are to Africa, latin America and the Middle East.  Bajaj Auto has replaced Hero Motocorp as India’s No 1 two wheeler maker in lockdown.Bajaj auto sold 116 units more than Hero Motocorp.

Image Source : https://www.autopunditz.com/

Bajaj Auto contributes to more than eighty five percent of three wheeler exports from India. The three wheeler manufacturing takes place at Chakan and Waluj.

Recently, Bajaj auto has confirmed reports that they will be opening an assembly plant in Brazil. Along with this new venture, the company will also set up its design office in Thailand to take care of assembly in ASEAN region. A new design office will also be set up in Europe. The company managed to continue the exports of motorcycles amidst the pandemic.

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