Bajaj Auto plans another increase in motorcycle production

Bajaj Auto is planning to increase its motorcycle production from 200,000 units per month to 250,000 units by March, according to

The expansion would cater to the increased demand from domestic and export markets alike, said S Sridhar, vice-president, marketing and sales, two wheelers, Bajaj Auto.

The company is planning to launch a new executive segment motorcycle in a few weeks from now. Only two months back Bajaj expanded its motorcycle capacity from 150,0000 units per month to 200,000.

The expansion would be across the company's facilities in Chakan, Akurdi and Pune. The increased demand is coming out of a phenomenal growth in sales. For the nine months of the fiscal ended December 2005, Bajaj's motorcycle sales was up by 30 percent, surpassing the industry growth of 18.8 percent during the same period.

Of the 50,000 units increase in production, 25,000 would be that of Bajaj Discover motorcycle. The company recently launched a 110 cc variant of Discover. The export growth of 56% in the quarter ended December 2005, was due to growth in demand in traditional markets like Sri Lanka and Columbia.

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