Bajaj Auto Limited (BAL), the country’s second largest maker of two and three –wheelers, is planning to expand capacity in two of its factories.
The company, which has recently launched a revamped line of 100 cc motorcycles, sees an improvement in demand even after the festival season is over. “We are planning to expand our capacities in the two factories, our ability to supply depends on the number of moulds we have there,” said Milind Bade, GM, marketing, two wheelers, BAL. Moulds are used to form parts of the motorcycles.
Bade, however, did not disclose the quantum of investment. Bajaj Auto reported a 6 per cent rise in total vehicle sales to 2.13 lakh units in August 2009 over August 2008.
The company will increase capacity in its Pantnagar and Waluj plants, which are close to full capacity of 75,000 units per month. The decision to increase capacity is significant, since BAL has been cutting down production since 2008, when its market share began shrinking.
The expansion in capacity will be used to cater to demand for the 100 cc motorcycles that the company has relaunched earlier this year. It is also planning variants of the 100 cc motorcycles, but is keeping ‘its cards close to its chest,’ Bade added.