The new manufacturing unit is set to come up at an investment of Rs.650 crores
Bajaj Auto Limited has announced its intention to set up a new plant in Chakan industrial area of Pune in Maharashtra. The company has signed a Memorandum of Understanding with the Government of Maharashtra and production is set to commence by 2023.
KTM, Husqvarna and Triumph bikes
As per rules and regulations of the Government, Bajaj Auto will go ahead with obtaining necessary permissions and registrations, approvals and clearances from the respective departments in the state. The facility is expected to commence production by 2023 and will focus particularly on production of high end KTM, Husqvarna and Triumph bikes.
The company also plans to shift production of the Chetak electric scooter to this new plant while plans are afoot to introduce other electric vehicles into the country. A few weeks ago, Mr Bajaj had stated that he was looking to setup a new plant outside Maharashtra as the conditions in the state were not favourable.
Bajaj Auto holds a 48 percent share in KTM and in Feb 2020 also introduced Husqvarna, also a part of the KTM Group, into the country. Bajaj Auto has also entered into a partnership with Triumph earlier this year for the production of its 200 to 750 cc range of motorcycles for both Indian and global markets.
Production Boost A Must
From total sales of 2.80 lakh units clocked in 2019, KTM expects to double this count of two wheeler sales in 2022. This would mean doubling production at the Bajaj Auto Chakan plant to around 4 lakh units from a current 1.08 lakh units as on date. This would include joint products of the KTM and Husqvarna brands and KTM products distributed by Bajaj on license fee.
The two companies have started work on electric two wheelers, the first of which will have power range of 3-10 kW and which will roll off the Chakan production lines. KTM is also developing a 4 kW electric scooter under the Husqvarna brand and this will be followed by the launch of the Husqvarna E-Pilen fully electric motorcycle with modular battery system with launch date set for 2022.
Target for Increased Market Share
Rajiv Bajaj is targeting increased market share of 20-25 percent over the next 12 months and hints that the electric scooter or motorcycle segments would be an attractive space to be in.
Bajaj Auto is celebrating its 75th year of operations in Maharashtra this year. The company has noted outstanding demand for the new Chetak electric scooter and now plans to enter the three wheeler electric space by mid 2021. This will be followed by an electric quadricycle and a performance electric motorcycle which the company is developing along with its Austrian partner KTM.
