Bajaj to make 125 cc bikes for Kawasaki

AUTO EXPO 2006

Bajaj Auto will be Kawasaki's single source of motorcycles up to 125-cc capacity. Bajaj Auto is India's second-largest motorcycle maker.

Announcing this on the sidelines of a curtain-raiser press conference for the 8th Auto Expo here today, Bajaj Auto Vice-Chairman Madhur Bajaj said, "Kawasaki, with its inherent strength in making bigger bikes, has decided to source its small motorcycles from Bajaj Auto."

Bajaj said the fresh demand from Kawasaki would be met from its Aurangabad plant. This, he said, would be yet another step for Bajaj Auto to close the gap with world's largest motorcycle-maker, Hero Honda.

Earlier this week, Chairman Rahul Bajaj had said the company was chalking out plans to set up a manufacturing base for two- and three-wheelers in Nigeria and Brazil. The company is also setting up a plant in Indonesia which is likely to start commercial production by September this year.

Export revenue for Bajaj Auto is expected to rise to 12 per cent of turnover in the current financial year from two per cent five years ago while this year's export revenue is likely to exceed Rs 1,000 crore.

Bajaj Auto's performance in 2005 was better that Hero Honda's in terms of market share. It gained a market share of 5.42 per cent in motorcycle while Hero Honda reported a loss of 3.3 per cent.

Bajaj Auto sold 23.56 lakh units in 2005 against 16.17 lakh units in 2004, a growth of 46 per cent while Hero Honda's sales, including exports_though on a staggering base of 25.29 lakh units_grew by 15 per cent in 2005 to touch 29.14 lakh units. At the end of 2005, Hero Honda's marketshare in this segment was 44.5 per cent while Bajaj closed the year with a share of 36 per cent.