Bajaj to make 4-wheeler at Rs 2,000cr Chakan unit

The country's second-largest two wheeler maker Bajaj Auto will invest Rs 2,000 crore to set up a greenfield facility near Pune for manufacturing four-wheeled commercial vehicles.

The auto major today signed a pact with the Maharashtra Government for acquiring a 250-acre land at Chakan near Pune, where the project would be operational by early 2009.

"Initially we will invest around Rs 1,200 crore to begin with production of 1,50,000 vehicles, including four- and three-wheelers from the plant. We will produce around 5,00,000 vehicles a year, once the plant is completed," Rahul Bajaj chairman of Bajaj Auto, said.

The company has earmarked a capex of Rs 1,500 crore for the coming three years, of which Rs 600-700 crore will be spent in the first phase of the project.

Taking a cue from recent success of low-cost commercial vehicles, Bajaj, which shed away its tempo business few years back, will produce similar vehicles from this plant.

"We will be coming out with a low-cost four-wheeled vehicle, which will be meant for commercial use," he added.

The company will also introduce a battery-operated three wheeler by the end of next month. "The battery of the vehicle has to be replaced after three years. I appeal to the state government to provide some incentives to the customers using this non-polluting vehicle," Bajaj said.