Bajaj Auto on Friday announced major expansion plans, including foray into light cargo four-wheelers and a greenfield bike plant in Uttranchal, with an investment of Rs 1,500 crore spread over three years.
The company's board approved the various proposals and said that the expansion will be funded by internal accruals, Executive Director Sanjiv Bajaj said.
As per the plans, Bajaj Auto will set up a greenfield project at Chakan in Maharashtra to manufacture the "new generation" of 3-wheelers and light cargo 4 wheelers.
The company's new bike plant will come up at Pantnagar with a capacity of one million motorcycles, Bajaj said, adding it will commence operations in 2007.
Bajaj Auto said it will enhance capacity from 3.5 million units per annum to 5.1 million vehicles by 2009.