Bajaj to foray into truck mart

Bajaj Auto Ltd (BAL) is foraying into commercial four-wheelers segment by launching small trucks in the next three-year period. The company is also planning to set up an assembly line for two-wheelers in Indonesia in a joint venture with a local company.

"We are mulling of entering into the four-wheeler segment in the country and intends to launch small trucks. R&D initiatives in this front have already begun and we are preparing ourselves to enter the commercial four-wheeler segment in a big way," Rajiv Bajaj, managing director and chief executive officer, told reporters on the sidelines of the company's launch of 'Probiking Showrooms'.

He, however, did not reveal the proposed amount to be invested nor the specifications of the small truck the company was intending to manufacture.

The company is also planning to set up an assembly line for two-wheelers in Jakarta, Indonesia. The venture would be in partnership with a local company and BAL would hold a 95 per cent stake in the venture.

Further details of the investments, like the amount earmarked for the venture, nor details of the local company was disclosed.

Rajiv Bajaj said the company was bullish on exports from India, particularly to South East Asian nations such as Indonesia and Malaysia. It also sees a huge export potential to nations like Pakistan, Nigeria in Africa and Iraq, and was looking at exporting two-wheelers to these countries.

The company already exports its automobiles to Sri Lanka, Bangladesh, Egypt and Columbia in Latin America, with exports touching 90,000 units in last financial year. The company's is expecting to more than double its exports to 2.40 lakh during this year, he said.

BAL is also restructuring its entire network of 480 dealers spread across the country, with bringing in a division in its sales channels.

The four channels would be probiking, two-wheelers and scooters, rural markets and three-wheelers, and these would help in increasing the company's visibility and sales in the country. The company also intends to increase its total number of showrooms to 510 by March 2006.

The Probiking Showrooms offer buyers a chance to test-ride the company's performance bikes on indoor dynamometres. The showrooms will showcase bikes in the range of 150 cc to 200 cc and above, and bikers would be able to test the vehicles acceleration time, top speed, braking facilities, which are not possible on a road test. The company is also planning to open 10 such showrooms in the city by the end of this fiscal, he said.