The ₹84 crore capital infusion will fund business expansion and support Bajaj Auto's growing operations in Brazil.
16 Oct 2024 | 3531 Views | By Autocar Professional Bureau
Bajaj Auto Ltd, one of India's leading two-wheeler manufacturers, has announced plans to invest up to $10 million in its wholly-owned Brazilian subsidiary, Bajaj Do Brasil Comercio De Motocicletas Ltda ("Bajaj Brazil"). The decision was approved by the company's board of directors during a meeting held today.
The additional ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Bajaj Auto Ltd, one of India's leading two-wheeler manufacturers, has announced plans to invest up to $10 million in its wholly-owned Brazilian subsidiary, Bajaj Do Brasil Comercio De Motocicletas Ltda ("Bajaj Brazil"). The decision was approved by the company's board of directors during a meeting held today.
The additional capital infusion, equivalent to approximately ₹84 crores at current exchange rates, is aimed at funding business expansion and meeting the needs of the growing operation in Brazil. The investment will be made in a phased manner, based on business requirements and plans.
Bajaj Brazil, incorporated in Mar 31, 2022, has shown promising growth in the Brazilian motorcycle market. In Jun 2024, the subsidiary commissioned its own manufacturing facility in the Manaus free trade zone, with an annual capacity of 20,000 units on a single shift basis. The company currently sells motorcycles under the 'Dominar' brand in Brazil.
The size of Bajaj Brazil's operations, based on the trailing four quarters ending September 30, 2024, was approximately ₹250 crores, arising from the sale of around 9,000 motorcycles.
This strategic investment underscores Bajaj Auto's commitment to expanding its global footprint and capitalizing on growth opportunities in the Brazilian market. The move is expected to strengthen the company's position in South America's largest economy and support its international growth strategy.
Bajaj Auto Limited will continue to hold 100% ownership of Bajaj Brazil following this investment.
Bajaj Auto has expanded its operations in several overseas markets. The company's international strategy has focused on emerging economies, with varying degrees of success across different regions.
Bajaj Auto's recent decision to invest an additional $10 million in its Brazilian operations suggests the company sees potential for growth, but also indicates that further investment is needed to establish a stronger presence.