Bajaj Auto to set up its first overseas facility in Brazil; to produce KTMs too

India's largest exporter of motorcycles and three-wheelers, Bajaj Auto is all set to set up its first overseas manufacturing facility in Brazil through its wholly-owned subsidiary Bajaj Do Brasil.

Company’s Executive Director Rakesh Sharma said local presence in Brazil, Latin America's biggest two-wheeler market, will help Bajaj Auto gain insights into product development and customer behaviour and strengthen its presence in the region.

As per an ET Auto report, the initial capacity of the proposed Brazil plant, which is likely to come up in Manaus Special Economic Zone in northern Brazil, will be 20,000 units per month, Sharma said, adding that the unit is likely to commence production in the next 12 months.

In addition to Bajaj models, the proposed Brazil facility will also produce the motorcycles of Austrian company KTM AG.

Bajaj also has a tie-up with UK-based Triumph Motorcycles, which already has a manufacturing presence in Brazil.

Pune-based Bajaj Auto has a presence in more than 90 countries, where it follows a distribution-led model - the company's distribution partners manage local operations, including assembly.

Bajaj is the largest exporter of motorcycles and 3-wheelers in India. The company has a presence in over 90 countries. The distribution model adopted by Bajaj has served it well in these markets, but the company believes that Brazil is an exception due to its size, complexity, and unpredictability.