Bajaj Auto to make commercial vehicles

Two-wheeler firm Bajaj Auto is entering the commercial vehicle segment. The company is setting up brand new plants in Pantnagar and Chakan to manufacture the new range of three/four-wheelers which is expected to commence operations in 2008.

In a notice to the stock exchange, Bajaj Auto said its board has cleared investments in new plants and expansion of facilities in Akurdi, Pune. 8216;8216;Considering the robust domestic demand for Bajaj vehicles and plans for a major foray in markets outside India, the board has approved plans to build capacity of two, three and four-wheelers to 5.1 million vehicles per annum by 2009,8221; the company said.

Analysts said Bajaj Auto could be targetting light commercial vehicles. 8216;8216;I won8217;t be surprised if they compete directly with Force Motors,8217;8217; said an analyst.

The company will have a capacity to make 46 lakh two-wheelers and 5 lakh three and four-wheelers. In the first phase it is proposed to expand motorcycle capacity to 3.6 million per annum by 2007.

The total capacity expansion will be implemented in phases over the next three years through a combination of expansion of capacities at its existing plants in Akurdi and Chakan.