Bajaj Auto to fund up to $10 million in its overseas manufacturing plant

Bajaj Auto Ltd, a major player in India's motorcycle market, revealed a plan to invest a maximum of $10 million in its wholly-owned subsidiary, Bajaj Do Brasil Comercio De Motocicletas Ltda, also known as Bajaj Brazil. The investment of around ₹84 crores at current exchange rates is aimed at backing business expansion and addressing the growing needs of Bajaj's operations in Brazil. The money will be distributed gradually based on the requirements and strategies of the business.

Bajaj Brazil, founded on March 31, 2022, has shown advancements in the motorcycle industry in Brazil. In June 2024, Bajaj Auto opened a new factory in the Manaus free trade zone with the ability to produce 20,000 units per year on one shift. At present, Bajaj Brazil sells motorcycles branded as 'Dominar'.

In the past year, Bajaj Brazil's sales of about 9,000 motorcycles resulted in around ₹250 crores in revenue. After the recent investment, Bajaj Auto will still have complete ownership of its subsidiary in Brazil.

Significantly, the Manaus factory is the initial production site for Bajaj Auto that is located outside of India. In contrast to how it operates in other nations using a distribution-led approach, this plant focuses on manufacturing directly. The factory covers 9,600 square meters and has facilities for engine assembly, vehicle assembly, and testing, with the possibility of increasing production capacity to 50,000 units per year later on.