Bajaj To Set Up Assembly Unit In Indonesia This Year

Bajaj, which owns a little over 47 per cent stake in KTM, will launch its sub-400cc superports and supernakeds as compete CKD kits in Indonesia. The decision was made when Bajaj launched six KTM models in Indonesia - the 200 Duke, 250 Duke, 390 Duke, RC 200, RC 250 and the RC 390 - as CBU units, which were received very well. The overwhelming response prompted the two manufacturers to start exploring the option of having an assembly plant in the country, which would reduce taxes and costs.

Currently, all the six bikes are being manufactured and exported from the Chakan plant in Pune as completely built-up units (CBU) which turns out to be quite expensive.

“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 licenses have been renewed. Further, studies on the product acceptability have been conducted, which look favourable,” said Bajaj Auto in a note to its 2017-18 annual report.

“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,” added Bajaj.

Bajaj entered the Indonesian market back in 2005 with its Pulsar range of motorcycles. Despite years of operations in the country, the business still ran in losses. The firm has now decided to start afresh with its KTM lineup, which will be exported to Indonesia in the form of kits and then assembled in its plant.