Bajaj Auto to increase its production capacity to 6.3 million units

According to news reported by Business Standard, country’s second largest two wheeler manufacturer Bajaj Auto is planning to increase its production capacity by more than 25%. The company has currently installed capacity of 5 million units (4.5 million two wheelers and 0.5 million three wheelers) which is not sufficient for next financial year 2013-14. The company aims to increase its production capacity to 6.3 million units (5.7 million two wheelers and 0.6 million three wheelers) to cope up with the increasing demand of its motorcycles worldwide. The company has set target of selling 5 million units worldwide during the financial year 2012-13.

Rajiv Bajaj, MD Bajaj Auto ltd. said, “For the current year, we have the capacity to produce and sell five million units. Investments have already been made at our plants. We are looking at increasing productivity to manufacture 6.3 million which will come on-stream next year. Our goal is only one. We have to become a bigger, better and stronger motorcycle manufacturer on a global basis. Our every move is aimed at going up the value chain. We want to increase our global market share while maintaining good profitability.”

The capacity expansion will take place across the company’s three plants, Waluj, Chakan and Pantnagar. The company will utilize its additional capacity for new global markets and new variants of Discover and Pulsar. Last year the company exported 1.27 million units of motorcycle across the world which is more than 33% of its total motorcycle sales.  The company aims to increase its export to 50% of its total production in the next few years. It is to be noted that the company’s export is increasing at 25-30% rate and it is adding new geography every year. Bajaj Auto has appointed new distributor in Mexico and it will start exporting to Argentina in the next six months.

-Mahavir Kothari