Bajaj Auto to set up ₹300 crore electric vehicle plant in Akurdi

Bajaj Auto, India’s third largest two-wheeler manufacturer, will set up a dedicated electric vehicle manufacturing plant at Akurdi, Pune with an investment of ₹300 crore. Bajaj Auto hopes to roll out the first vehicle from this unit by June 2022, 15 years after the plant last produced a vehicle.

This new factory will have a production capacity of 5,00,000 units per annum. Akurdi is also the site of the original Chetak scooter factory that made Bajaj Auto a household name in India. Auto parts suppliers of Bajaj Auto will invest ₹250 crore to support manufacturing operations.

Rajiv Bajaj, Managing Director, Bajaj Auto said, “Going forward, for the Bajaj portfolio, except for implementing one internal combustion engine platform that is currently under development, all our R&D drivetrain resources are now laser-focused on creating EV solutions for the future.”

The electric Chetak is currently being built at the Chakan factory in Pune, which also produces motorcycles of LKTM, Husqvarna and Pulsar. Bajaj believes the future focus on EVs will help it put the company on path to achieve its ambition of being the market leader in this segment.

“This alignment reflects our belief that light electric vehicles for sustainable urban mobility is an idea whose time may finally have come. Thus, this investment at Akurdi completes the virtuous cycle of hi-tech R&D competencies, high-efficiency engineering capabilities, world class supply chain synergies, and global distribution network which should leapfrog us into a market leading position in EVs in India and overseas,” Bajaj added.

Spread over 500,000 sq feet, the new plant in Akurdi will have robotic and automated manufacturing systems for logistics and material handling, fabrication and painting, assembly and quality assurance. The plant will employ around 800 personnel.

These systems have been designed for flexible product mix, while keeping in mind the best worker ergonomics and maximum process efficiency.

Akurdi plant

Akurdi, which housed Bajaj Auto’s first-ever manufacturing plant, last saw a product roll out in 2007. Spread over 160 acres, the Akurdi plant currently houses Bajaj Auto’s research and development (R&D), corporate centre, and purchase and sales operations.

Krystal was the last scooter made by Bajaj Auto from the Akurdi plant before a voluntary retirement scheme (VRS) was offered to workers affected by the shutdown.

Bajaj Auto currently has only one electric vehicle, the Chetak, in its line-up. The company is working on an electric model under the Husqvarna brand as well as further additions under its own brand. The long-delayed electric three-wheeler, which will mark Bajaj Auto’s entry into the space, will likely debut in 2022.

In July 2021, Bajaj Auto decided to set up a wholly-owned subsidiary to tap growth opportunities in the electric and hybrid two-wheeler, three-wheeler and light four-wheeler categories.

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