Bajaj Auto to hike vehicle production capacity to 50 lakh

NEW DELHI: Bajaj Auto Ltd today said it will increase its overall vehicle production capacity to 50 lakh units a year by the end of this fiscal.

The company has three manufacturing plants at Waluj and Chakan in Maharashtra and Pantnagar in Uttarakhand and produces a total of 46 lakh units of two and three- wheelers annually.

"Earlier this month, we have commissioned Plant II at our Pantnagar facility taking the capacity to 15 lakh units of motorcycles per year from 12 lakhs. By March 31 next year, total capacity at the plant will reach 18 lakh units per annum," Bajaj Auto Chief Financial Officer Kevin Dsa said.

Besides, the company will be increasing production capacity of three-wheeler at its Waluj plant to 5 lakh units annually from the current 4.2 lakh units, he added.

The plant also produces bikes with a capacity of 15 lakh units per year.

"Motorcycle capacity at Waluj will remain the same," Dsa said, adding there will not be any capacity hike at the Chakan plant, which has can produce 12 lakh units a year.

Asked about the investments, he said it is part of Rs 150 crore to Rs 200 capex slated for the ongoing fiscal.

"This year we had earmarked between Rs 150 crore and Rs 200 crore for capex, including capacity expansion, research and development, modernisation, replacement and support systems," he said.

On the sales prospect of the company for the ongoing fiscal, Dsa said: "In the beginning of the year we had stated that we will be selling a total of four million two and three wheelers. We still maintain that."

The company today posted a net profit of Rs 682.08 crore, up 69.3 per cent from the same period a year ago on the back of its best ever quarterly sales.

"We have been breaking sales record. The previous best was achieved in the preceding quarter of this fiscal," he said, adding the high profit were also mainly due to the company's good sales performance in high-end segment bikes, where the margins are high.

"Of our total bike sales, 86 per cent is from high end Pulsar and Discover motorcycles and that helps in profitability," he said.

Source:Bajaj Auto to hike vehicle production capacity to 50 lakh - The Economic Times

News approved and similar topics merged.

With Hero going down because of Honda, they are just preparing for the good times.

As of now, HH is scaling new heights with each passing month.....

For almost all the bygone months, Hero Honda has surpassed their previous months already-heavenly figures...

In 2010 every single manufacturer is selling more than their last year's highs.

But see the whole story in terms if % of growth. The growth % of Hero Honda is in single digits where else every other maker is in double digits.

It means that while everybody is growing, the others are growing at Hero Honda's expense.

Currently I really dont think so....

After sitting at a 4 lakh+ base its very obvious that the growth percentage in visible 'points' would be less compared to anyone else....

Even a '5' percent growth in their case means an increment of 20k+ bikes...which aint a consolidated figure for a few companies here in India...


Talking about MoM growth...
They have been consistent in achieving and maintaining the 4lakh plus sales for the past 5 consecutive months.....


For Bajaj it was a different story. They were showing big gains in the range of 50% + till August 2010 as they had a dismal show during all the corresponding months....

True.. true.

But makes me wonder how long can the dream run last.



Which was Hero Honda's gain.

As far as my notion of Hero (Munjals) goes.....it would last.........


Might be under a different name but it would last......

I really don't think Hero would/should go solo in the motorcycle market.....


They have immense money, widespread (and settled) to the moon service/dealer base and big opportunities to rope in eager big names.....here in India...

just one thing i know,
HH is sucking big time as % rule,
Bajaj is just going high and high,
Yamaha is cruising,
and TVS can u have any other bike than Apache.