“We are looking at setting up an assembly plant at a place called Manaus in Brazil during the next year (fiscal 2010-11) and it will be a is a Free Trade Zone,” said Madhur Bajaj, Vice Chairman of Bajaj Auto while interacting with media persons at a function here on Monday.
Currently, it is in the process of studying the site and working out financial nittie-gritties, said he but specify if the auto major was seeking a partner for this venture or going solo.
Further he said the company has been contemplating an assembly plant for two wheelers in Brazil for over six-years now. “One of our distributors has already set up a plant in Egypt and they are also looking to set up plants in Nigeria, Iran and Colombia.” Currently, Bajaj Auto exports to over 30 countries in Latin America, Africa, the Middle-East, South and South-East Asia, accounting for one-third of the company’s total production.
Further, he hinted that it may also take up expansion of its facility at Waluj near Aurangabad, where it produces the Kawasaki range of motorcycles and three-wheelers.
“We have a lot of land in Aurangabad and as such have scope for very major expansion. It is a possibility that production of CV would be taken up there,” said he. However, he said, expansion and up-gradation depended on how demand shapes up. “It (demand) has been going up but a lot also depends on government policies and whether banks ease the norms for two-wheeler financing,” Bajaj said.
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