Bajaj to expand Chakan plant in Maharashtra, aims 23% market share.

Two wheeler major Bajaj Auto is looking at expanding its Chakan plant capacity in Maharashtra as part of its plans to raise its market share to 23 per cent from the current 17 per cent.

The company wants to increase total market share in the two-wheeler segment to 23 per cent, Bajaj president (motorcycle business) Eric Vas said on the sidelines of launch of new sports bike recently.

He added, 'We are close to capacity at Chakan plant, which is about 91,000 units per month. We have to increase the capacity for pulsar.'

However, he declined to give any further details of the proposed capacity expansion.

The overall production capacity in its all three plants is 3.25 lakh units per month, out of which the company sold 1.46 lakh per month on an average for the year 2014-15.

But, the projected growth would depend a lot on the behaviour of the 100cc bike category which is shrinking for the last few months.

Bajaj remained optimistic about the sports bike category and launched first bike RS200 priced above Rs 1 lakh.

The current market of racer sports segment is about 6,000 units per month and Bajaj is vying for 2,500 bikes.

Meanwhile, sports bike accounts for just one per cent of the total bike market.

The company has launched 5 models this year and at least one more Pulsar is awaited in the next few months.

Vas also hinted that the company was considering to launch models in the 350-400 cc category.


ET