Brazil will be the first foreign country where Bajaj Auto opens a production factory

31 Jul 2023 , 11:15 AM

Through its wholly-owned subsidiary, Bajaj Do Brasil, Bajaj Auto, the leading exporter of motorbikes and three-wheelers from India, is opening its first manufacturing facility outside of the country in Brazil. 

Rakesh Sharma, the executive director, stated to ET that having a local presence in Brazil, the largest two-wheeler market in Latin America, will enable Bajaj Auto better understand consumer behavior and product development.

Bajaj Auto is present in more than 90 countries and has a distribution-led business model there. Local activities, including assembly, are managed by the company’s distribution partners.

According to Sharma, the first capacity of the proposed Brazil facility, which is most likely to be built in northern Brazil’s Manaus Special Economic Zone, will be 20,000 units per month. Sharma also stated that the unit is most likely to start producing within the next 12 months.

The proposed factory in Brazil will manufacture not only Bajaj models but also KTM AG motorcycles, in which Bajaj Auto holds a 48% share.

Additionally, Bajaj Auto and UK-based motorcycle manufacturer Triumph have a global partnership for the joint development of middle-weight motorcycles. The latter is already present in Brazil in terms of manufacturing.

It has worked successfully for Bajaj by enabling it to attain a leadership position, according to Sharma. The distributor model has allowed Bajaj Auto to combine its skills in product, manufacturing, and brand development with the local partner’s entrepreneurial enthusiasm and understanding.

According to the market research company IMARC Group, the Latin American two-wheeler industry will reach 10.6 million units in 2022. According to the forecast, the market will reach 23.7 million units by 2028, growing at a CAGR of 14.2% from 2023 to 2028.

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