Bajaj Auto Signs Pact With Maharashtra Government For Rs 650 Crore Plant
The proposed facility will manufacture Husqvarna, Triumph and KTM brands of premium bikes besides electric vehicles.
Bajaj Auto on Tuesday said it has entered into an initial pact with the Maharashtra government for setting up a production plant at Chakan at an estimated investment of Rs 650 crore.
The proposed facility will manufacture Husqvarna, Triumph and KTM brands of premium bikes besides electric vehicles, the automaker said in a regulatory filing.
While Bajaj Auto holds 48% in Austrian premium sports motorcycle brand KTM, it introduced Husqvarna brand, which is part of the KTM group, in the country in February this year.
Also, this January, the Pune-based automaker announced the formal commencement of its non-equity global partnership with British iconic motorcycle maker Triumph to manufacture a range of mid-capacity bikes in the country.
"Bajaj Auto has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to set up a manufacturing facility on a proposed investment of Rs 650 crore in Chakan, Maharashtra," the company said in the filing.
The facility is expected to commence production in 2023 and will be utilised for manufacturing high-end KTM, Husqvarna and Triumph motorcycles as well as for electric vehicles starting with Chetak, it said.
Under the arrangement, Maharashtra Government will facilitate Bajaj Auto in obtaining necessary permissions/ registrations/ approvals/ clearances/ fiscal incentives, among others, from the concerned departments of the state as per the existing policies/ rules and regulations of the state government, it said.
The proposed investment further reinforces the commitment of Bajaj Auto to Maharashtra, the company added.