The Hindu Business Line : Bajaj Auto plans assembly operations in Jakarta

NEW scooter models, entry into the Indonesian market, bikes under 450 cc, and increase in production capacity are what Bajaj Auto Ltd has planned for the current fiscal.

Speaking to shareholders, Mr Sanjiv Bajaj, Executive Director, said that the company is looking at setting up assembly operations in Jakarta.

He added that a team with a foreigner, the first in the company, has already begun the task of putting up the business plan. "This is being undertaken as all this time we were only exporting the vehicles, but now the time has come for expanding our presence in the global market."

The operations would initially begin in Indonesia and later spread across Asean countries.

"Bajaj Auto has the right product mix, lean team, and the guts to do it."

Mr Rajiv Bajaj, Managing Director, said that the company is looking at coming out with three scooter models by December 2006.

He added that the company's new 110 cc ungeared Wave DTSi (digital twin spark ignition) has received good response; it is looking at a production of 6,000 vehicles a month.

"Currently, the gearless segment caters to only about 11 per cent of the total two-wheeler sales, but five years down the line there will be substantial increase in the market share."

Asked by a shareholder about the company plans, Mr Rajiv Bajaj said that the company was looking at expanding the production capacity of motorcycles to 2.4 million bikes a year.

"Within 2-3 years, this would be ramped up to touch three million units overall motorcycle capacity."

He added that the long-term goal was to be present globally.

He said that the Bajaj CT 100 had clocked cumulative sales of one million vehicles since its launch in May 2004.

To enhance value, CT 100 is being revamped with ExhausTec, spring-in-spring rear suspension, and 17-inch wheels.

On the three-wheeler segment, Mr Rahul Bajaj said that the company continues to be the market leader in the passenger carrier segment with a market share of 81 per cent, while the market share in the goods carrier segment has improved to 26.3 per cent.

On the attrition rate, Mr Rahul Bajaj said that it has been observing attrition in a few departments such as MIS, R&D, marketing, and finance.

To combat this, the company has decided to increase salaries across the board to all employees, other than daily workers, he added.

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