Bajaj Auto on Tuesday said it will invest Rs 650 crore to set up a manufacturing plant in Maharashtra. The country's leading two-wheeler and three-wheeler manufacturer 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 a regulatory filing.
The facility is expected to start 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.
"Under the arrangement, the government of Maharashtra will facilitate Bajaj Auto in obtaining necessary permissions, registrations, approvals, clearances, fiscal incentives, etc. from the concerned departments of the state, as per the existing policies, rules and regulations of the Government of Maharashtra," Bajaj Auto said in the regulatory filing.
The Pune-based company further stated that the proposed investment further reinforces its commitment to the state where the journey began. And it is being done in the year when Bajaj Auto celebrates its 75th anniversary, it added.
The company already has plants in Chakan (Pune) and Waluj (near Aurangabad) in Maharashtra. The oldest plant at Akurdi (Pune) now houses the R&D centre 'Ahead'.
Ahead of the announcement, shares of Bajaj Auto ended day's trade at Rs 3,269.30, up 1.14 per cent, against the previous closing price of Rs 3,232.45 on the BSE.
By Chitranjan Kumar