PTI reported that Bajaj Auto is planning to set up an assembly plant in a free trade zone at Manaus in Brazil next financial year.

The report quoted Mr Madhur Bajaj vice chairman of Bajaj Auto Ltd as saying that “We are looking at setting up an assembly plant at a place called Manaus in Brazil in FY11. It is a Free Trade Zone.”

He added that we are in the process of studying the site and working out financial details. But he did not specify if the auto major was seeking a partner.

Mr Madhur said that Bajaj has been mulling setting up of its plant in Brazil for over six years now. He said “One of our distributors has already set up a plant in Egypt. They are also looking to set up plants in Nigeria, Iran and Colombia.”

The company may also take up expansion of its facility at Waluj near Aurangabad, where it manufactures the Kawasaki range of motorcycles and three wheelers.

Mr Bajaj said that “We have a lot of land in Aurangabad which has scope for very major expansion. It is likely that production of commercial vehicles would go there.” He added that expansion and upgradation however depended on how demand shaped up.

(Sourced from Press Trust Of India)