India's two-wheeler and three-wheeler manufacturer Bajaj Auto on Tuesday said that it has signed a memorandum of understanding (MoU) with Maharashtra government for ₹650 crore to set up a manufacturing unit in Chakan.
The facility is expected to commence production in 2023, the automaker said in a regulatory filing. "This facility will be utilised for manufacturing high-end KTM, Husqvarna and Triumph motorcycles as well as for electric vehicles starting with Chetak," it added.
Under the arrangement, the Government of Maharashtra will facilitate Bajaj Auto in obtaining necessary permissions, registrations, approvals, clearances, fiscal incentives etc from the concerned departments of the State, as per the existing policies and rules and regulations of the state.
"The proposed investment further reinforces the commitment of Bajaj Auto to the State of Maharashtra where the journey began. And it is being done in the year when Bajaj Auto celebrates its 75th Anniversary," the company added.
Bajaj Auto in December reported a 5% increase in total sales to 4,22,240 units in November this year. The company had sold 4,03,223 units in the same month a year ago.
Domestic sales in November this year stood at 1,98,933 units as against 2,07,775 units, a decline of 4 per cent, Bajaj Auto said in a BSE filing.
Total motorcycle sales rose 12 per cent to 3,84,993 units, compared to 3,43,446 units sold in November last year.
Total commercial vehicle sales dropped 38 per cent to 37,247 units as against 59,777 in the same month last year, the company said.
Exports in November increased 14 per cent to 2,23,307 units over 1,95,448 units in the corresponding month last year, it added.
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