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Bajaj Auto may look beyond Chakan for Small Car Project

By Motortrend India Staff   |   13 April,2010

Bajaj Auto Ltd may look at other locations apart from Chakan for its projected three and four-wheeler plant. Bajaj Auto may look at moving out of Chakan due to unavailability of sufficient land for the new plant.

There is a problem with acquisition of land at Chakan and the company has not got the adequate area of land that it would need for the new project. Bajaj Auto has until now received about 250 acres from the Maharashtra Industrial Development Corporation (MIDC) and is looking at an additional 100 acres to begin work on the new plant.

With a proposed investment of around Rs 2,000 Crore, the plant would be a dedicated site for manufacture of three-wheelers, and the small car under Bajaj’s JV with Renault and Nissan. Bajaj already has a plant at Chakan which manufactures motorcycles.

Apart from Chakan, Bajaj Auto has enough land at Aurangabad. Besides, at Pantnagar also the incentives offered are better. The company may look at a fourth location in case it is needed. It plans to wait for another year before arriving at a conclusion and set up the plant next year if need be.

When contacted, K Shivaji, CEO, MIDC, said, “I am unaware of any such move by Bajaj Auto, however we want to retain investments in Maharashtra therefore we will speak with them to solve the matter.” Senior MIDC officials said they were not aware whether Bajaj Auto has applied for extra land at Chakan for the new plant.

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