The Hindu Business Line : Bajaj Auto's Indonesian unit may go on stream next year

TWO-wheeler maker Bajaj Auto's foray into the Indonesian market is set to take shape soon with production at its proposedunit expected to commence by early next year.

"The unit is expected to commence production sometime in the first half of 2006," Mr Rahul Bajaj, Chairman, Bajaj Auto, said.

The unit is being set up through a joint venture in which Bajaj will hold a 95 per cent stake.

"We are also planning to set up dealerships in Indonesia to sell our products, consisting mainly of the motorcycles Pulsar and Discover as well as three-wheelers," Mr Bajaj said.

Bajaj Auto had last year opened a representative office in Indonesia and put in place a team to spearhead the South East Asia operations. According to industry analysts, Bajaj's operations in Indonesia will not only help it to tap the sizeable local market but also allow to competitively market its vehicles in other ASEAN countries.

Bajaj is already selling its two-wheelers in the Philippines through a tie-up with its technical collaborator Kawasaki. The company had appointed Kawasaki Motor Philippines Corporation as its exclusive distributors for its products. However, Bajaj would be setting up its own dealerships in Indonesia.

Meanwhile, TVS Motor Company too has drawn out a strategy for an entry into the Indonesian market. The company expects to commence trial production of its motorcycles in Indonesia by July next year. TVS' Indonesian plant would have an installed capacity of a quarter million and would sell bikes to the ASEAN countries.

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