Explorer

Bajaj Auto To Set Up Assembly Unit In Indonesia This Year

The Pune-based bike manufacturer is waiting for clearances to start assembling KTM models up to 400cc in ASEAN’s largest two-wheeler market to save tax and reduce costs

Bajaj Auto To Set Up Assembly Unit In Indonesia This Year

Last year, Bajaj Auto began offering motorcycles from its Austrian partner KTM in Indonesia via the CBU (completely built unit) route through its wholly-owned subsidiary PT. Bajaj Auto Indonesia. Now, the homegrown bike manufacturer has announced that it will be setting up an assembly plant there so that it can export CKD (completely knocked down) kits of KTM motorcycles that are already on sale in the country. These include models such as the 200 Duke, 250 Duke, 390 Duke, RC 200, RC 250 and the RC 390. The move will help the bike manufacturer price the bikes more competitively, while also helping it save a substantial amount in the form of reduced import duties for CKD kits (CKD).

PT Bajaj Auto Indonesia has been tasked with the responsibility of setting up the operation. It is currently under the process of seeking the necessary approvals, said the company in its annual report. Bajaj also said it plans to kick-off its operations this year.

The annual report reads, “The plan for PT. Bajaj Auto Indonesia is to spearhead the development of KTM and Bajaj partnership and bring the jointly developed products into Indonesia. To take this further, all the required manufacturing, import and business licences have been renewed. Further, studies on the product acceptability have been conducted, which look favourable. In addition, CKD configurations have been created and the process of seeking clearances for these configurations has started. The company plans to kick off the business operations for PT. Bajaj Auto Indonesia in the current year with the CKD production in Indonesia.”

Bajaj Auto To Set Up Assembly Unit In Indonesia This Year

Bajaj Auto’s Indonesian subsidiary, which started life by offering the Pulsar range of motorcycles back in 2005, will also help the Pune-based bike manufacturer to coordinate with local distributors to build brand network and develop a supply chain for a more efficient distribution of its CKD products. Although the sales of sports bikes took a hit in Indonesia last year, the company is hopeful that the latest move will help revive the segment. Moreover, Indonesia’s current account deficit of 1.8 per cent when compared to 2 per cent last year should help offer a more stable currency regime, which is good news for international businesses to operate successfully in the country.


This Story has not been edited by ABP News. It has been published through bikedekho.com feed directly.

Top Headlines

'From Dhurandhar To UCC, Congress Only Spreading Lies': PM Modi Attacks Oppn At Kerala Election Rally
'From Dhurandhar To UCC, Congress Only Spreading Lies': PM Modi Attacks Oppn At Kerala Election Rally
Iran FM Aragchi Denies Refusing Mediation Talks In Pakistan, Thanks Islamabad As Ceasefire Efforts Stall
Iran FM Aragchi Denies Refusing Mediation Talks In Pakistan, Thanks Islamabad
Jharkhand Air Ambulance Crash: Probe Report Flags Bad Weather, No Black Box On Board
Jharkhand Air Ambulance Crash: Probe Report Flags Bad Weather, No Black Box On Board
‘Scripted Campaign Against Me’: Raghav Chadha Hits Back At AAP Allegations
‘Scripted Campaign Against Me’: Raghav Chadha Hits Back At AAP Allegations

Videos

Strategic Fallout: Iran Claims Major Air Defense Success, US Faces Rising Pressure in Iraq and Beyond
Strait of Hormuz: Indian LPG Tanker Crosses Hormuz Safely Amid Tensions, Supplies Head to India
Missile & Drone Attacks: Iran’s Missile-Drone Barrage Escalates War, Strikes Hit Cities and US Bases
War Alert: US Aircraft Incidents and Iran’s Counterattack Narrative
Strike Alert: Basra Oil Hub Ablaze as Iran Claims US Jet Hits

Photo Gallery

25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Embed widget