Bajaj to invest Rs 1,500 cr, expand capacity

Besides Bajaj will also undertake capacity expansions in its existing units in Akurdi and Chakan.

The four-wheeler is pegged at the goods carrier segment while the three-wheelers is expected to be a combination of both the goods carrier and the passenger segment.

The total capacity expansion will be implemented in three phases by 2009 which will see Bajaj8217;s production capacity go up to 5.1 million units from the current 3.5 million units. In the first phase a greenfield unit for motorcycles will be set up in Pantnagar in Uttaranchal which will increase Bajaj8217;s motorcycle production to 3.6 million units by 2007.

8216;8216;Considering the robust domestic demand for our vehicles and our plans for major forays in markets abroad, our Board has decided to ramp up production of two wheelers to 4.6 million and 3/4 wheelers to 0.5 million by 2009,8217;8217; said Bajaj Auto Executive Director Sanjiv Bajaj.

For FY 2007, the company is targeting sales of 2.55 million two wheelers and 3,00,000 three wheelers which includes exports of about 3,65,000 vehicles.