Bajaj Auto Inaugurates First Overseas Plant In Brazil Amid Exports Slump
Bajaj Auto says the Brazil-based manufacturing plant has a production capacity of 20,000 units/year on a single shift. The company’s global presence has also expanded to 100 countries now.
Bajaj Auto Ltd. has started production at its first overseas manufacturing plant in Brazil, even as exports slumped despite bumper two-wheeler sales in Latin America.
Spread over 9,600 square metres in the northeastern city of Manaus, the facility has a production capacity of 20,000 units per year on a single shift, according to a company statement on Wednesday. The production capacity can be expanded to 50,000 units per year. Local suppliers are on board to source key motorcycle parts and components.
The automaker can set up additional product lines at will but is initially focused on sourcing, assembly and testing of Dominar models.
The Pulsar range of motorcycles is sold as ‘Dominar’ in the Latin American markets. Bajaj Auto began constructing the manufacturing plant in Brazil exactly a year ago.
“With the establishment of our own plant in Brazil, we have achieved a quantum shift in our local capability to fulfil demand…,” Rakesh Sharma, executive director at Bajaj Auto, said in the statement. “The new manufacturing plant will enable us to build a wider distribution network, introduce new products and meet growing expectations of our customers.”
Bajaj Auto is taking production overseas at a time when two-wheeler sales are booming in Brazil as well as other Latin American countries.
Motorcycle sales in Brazil surged more than 20% in the first five months of this year. The South American motorcycle market is estimated at $15.42 billion from unit sales of 3.65 million in 2024, according to Statista. Growth is seen at a healthy compounded annual growth rate 6.02% by the end of this decade. To put things into perspective, India’s motorcycle market—the biggest globally—is seen at $32.1 billion.
Bajaj Auto is the biggest exporter of two-wheelers from India with presence in more than 100 countries. While overseas dispatches have slumped of late—the company sold 16.36 lakh units in the financial year-ended March 2024, down 10% year-on-year, data sourced from the Society of Indian Automobile Manufacturers showed.
