Bajaj Auto plans three-wheeler plant in Indonesia

Bajaj Auto Ltd plans to set up a three-wheeler plant in Indonesia this year as part of strategies to expand its overseas business, a top company official has said.

Bajaj Auto Ltd plans to set up a three-wheeler plant in Indonesia this year as part of strategies to expand its overseas business, a top company official said.

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The factory would initially produce three-wheelers and later, also make two-wheelers in the Southeast Asian country, Bajaj Auto's Vice President (Finance) Sanjiv Bajaj said.

"We are exploring whether to go in for a joint venture with an Indonesian partner or to set up our own plant," Bajaj said.

Bajaj Auto Ltd. (BAL) is the second-biggest two-wheeler and the biggest three-wheeler maker in the country.

The proposed Indonesian venture would be BAL's second overseas plant. It now assembles and sells three-wheelers in Brazil for sale in the South American nation and neighbouring countries through a distributor.

"After Indonesia, we will expand the Brazil venture by tying up with a new distributor," Bajaj said, but did not give details.

BAL would also start exports of two-wheeler models -- 'Byk', 'Caliber 115' and 'Wind 125' -- to Philippines through its technical partner, Japan's Kawasaki Heavy Industries.

The new overseas initiatives are expected to help the Pune-based automaker increase its exports by over 50 per cent to about 1.6 lakh units during 2003-04 and to over two lakh units in the year after, BAL Joint Managing Director Rajiv Bajaj had said recently.