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Bajaj Auto to build new factory to produce KTM, Husqvarna motorcycles, & Chetak Electric scooters

Indian two-wheeler manufacturer Bajaj Auto is famous among young buyers for their Pulsar motorcycles. Bajaj is now the third largest two-wheeler manufacturer in the country and they have number motorcycles in their portfolio. The brand has now announced that they will be signing a memorandum of understanding with government of Maharashtra to build a new factory for producing KTM and Husqvarna motorcycles. The upcoming plant will be set up right next to the existing Bajaj Auto plant at Chakan near Pune. The proposed investment for this new plant is Rs 650 crore and is expected to start production in 2023.

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Bajaj Auto said in a statement, “Under the arrangement, the Government of Maharashtra will facilitate Bajaj Auto in obtaining necessary permissions/ registrations/ approvals/ clearances/ fiscal incentives etc. from the concerned departments of the state, as per the existing policies/ rules and regulations”

The upcoming plant is not dedicated for KTM and Husqvarna alone. Bajaj Chetak Electric scooter and Triumph motorcycles are also expected to be manufactured here. Bajaj Auto and Triumph motorcycles had announced a global partnership in the past. As part of this partnership, Both brands are currently working on developing a mid-capacity range of motorcycles. The Bajaj-Triumph partnership will explore 200-700 cc motorcycle segment. The first product from this partnership is expected to be launched in 2022 at a very competitive price.

Bajaj’s existing plant is well equipped for manufacturing Bajaj, KTM and Husqvarna motorcycles but, not the upcoming Triumph motorcycle. Bajaj Auto and entered KTM over decade ago and Bajaj Auto now holds around 48 percent of the stake. Over the last 13 years, this partnership has helped KTM emerge as world’s biggest premium motorcycle manufacturer. KTM has left American motorcycle giant Harley Davidson behind in 2018 and 2019.

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The new plant is also meant to increase the production of KTM motorcycles. The Austrian brand is expected to sell aronf 4,00,000 units of two-wheelers in 2022. In order to achieve that, Bajaj will be doubling their production from 1,08,000 units to 2 lakh (includes both KTM and Husqvarna). Bajaj will also be using this plant for the production of their only electric scooter Chetak. Bajaj launched the electric scooter with an iconic name earlier this year. It is an electric scooter that competes with TVS iQube and Ather 450 electric scooters in the segment.

Bajaj Auto and KTM are also working on several other products. The duo is working on an electric two-wheeler and the platform of the upcoming electric bike or electric scooter will be shared by both the brands. KTM is also working on an e-scooter for Husqvarna brand. The Husqvarna electric scooter is expected to be launched in the market in 2021. After the launch of the electric scooter, Husqvarna will also be launching an electric motorcycle which will be known as E-Pilen. It is expected to hit the production line some time in 2022.

Bajaj has made announcement regarding new factory at a time when other competitors like Suzuki and Honda Motorcycles and Scooters India have decided to go slow on investments due to current market situations. World’s largest two wheeler manufacturer had also announced a Rs 10,000 crore investment plan for next 5-7 years for new products and manufacturing facilities.