Bajaj to construct new plant in Chakan for premium brands & EVs

RSR · 23rd December 2020, 04:10

Bajaj Auto has signed an MoU with the government of Maharashtra to construct a new plant in Chakan with an investment of ₹ 650 crore. This facility will be used to manufacture KTMs, Husqvarnas and Triumphs, apart from electric vehicles.

Quote:

Bajaj Auto on Tuesday said it has entered into an initial pact with the Maharashtra government for setting up a production plant at Chakan at an estimated investment of Rs 650 crore.

The proposed facility will manufacture Husqvarna Triumph and KTM brands of premium bikes besides electric vehicles, the auto maker said in a regulatory filing.

While Bajaj Auto holds 48 per cent in Austrian premium sports motorcycle brand KTM, it introduced Husqvarna brand, which is part of the KTM group, in the country in February this year.

Also, this January, the Pune-based automaker announced the formal commencement of its non-equity global partnership with British iconic motorcycle maker Triumph to manufacture a range of mid-capacity bikes in the country.

"Bajaj Auto has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to set up a manufacturing facility on a proposed investment of Rs 650 crore in Chakan, Maharashtra," the company said in the filing.

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saikarthik · 23rd December 2020, 12:10

Quote:

Originally Posted by RSR

Bajaj Auto has signed an MoU with the government of Maharashtra to construct a new plant in Chakan with an investment of ₹ 650 crore. This facility will be used to manufacture KTMs, Husqvarnas and Triumphs, apart from electric vehicles.

Much needed I would say.

The success of Bajaj's JVs/partnerships brought better products at affordable range not just for the domestic market but also for exports. If they want to continue their momentum and start looking at selling premium product like a Triumph, the quality (fit, finish, attention to detail) in manufacturing needs special care, additional and upgraded equipment. They cannot keep making premium models from the same factory (mostly mentioned for mindset, although assembly lines are different) where they churn out entry level products.