Bajaj Auto Goes Global: Setting up its first overseas manufacturing facility in Brazil.

Through its subsidiary, Bajaj Auto, the largest exporter of motorcycles and three-wheelers in India, plans to establish its first overseas manufacturing facility in Brazil. The company’s executive director Rakesh Sharma said that this will help Bajaj Auto understand the local market and customers better and enhance its presence in Latin America, the biggest two-wheeler market in the world.

Bajaj Auto operates in more than 90 countries with a distribution-led model, where its local partners handle the assembly and other operations. However, Brazil is a different case due to its large size, complexity and unpredictability, Sharma told ET. He said that the company decided to adopt a different business model and directly manage the business development in Brazil.

What are the details of the plant?

The company expects to start production in the next 12 months at the proposed plant, which will have an initial capacity of 20,000 units per month. The plant will be located in Manaus Special Economic Zone in northern Brazil. It will produce not only Bajaj models, but also KTM AG motorcycles, an Austrian company that Bajaj Auto owns 48% stake in.

Bajaj Auto also has a global partnership with Triumph, a UK-based motorcycle maker that already has a manufacturing presence in Brazil. The two companies are co-developing middle-weight motorcycles.

How big is the Latin American market?

According to IMARC Group, a market research firm, Latin America’s two-wheeler market reached 10.6 million units in 2022. It is projected to grow at a CAGR of 14.2% and reach 23.7 million units by 2028.