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Indian two-wheeler makers are probably keen about having interest in investing global markets as per a latest update from the sources. The Two-wheeler king Hero MotoCorp has launched its brand name just few days back in London. If now sources are to be confirmed then it is said that India’s second largest two-wheeler maker Bajaj Auto may set up an assembly plant in Indonesia. To increase or mark its presence in Southeast Asia and make profit from the lower duty structure, Bajaj probably may execute this plan in the world’s third largest market.

The report states that, Pune-based firm is about to invest $150 million (Counted is Indian currency, then, Rs 675 crore) for the project. The report also stated Tomotaka Ishikawa, President and Director of PT Bajaj Auto Indonesia (PT BAI) saying that the plant which will be the company’s first ever major facility outside India would be ready by late 2013. The proposal will be approved only on the grounds if the Indonesian unit keeps a monthly sale above 3.000 units. The Indonesian press quoted Ishikawa saying, “My target is that by the end of the year we will be convinced to have a complete knock-down operation in Indonesia.”

It was also mentioned that the factory is about to have a production of 100,000 units a year. Though, it is yet to be cleared that whether Bajaj Auto would upgrade its existing facility, where it assembles semi- knocked down (SKD) parts, or go for a new one. The report also states that PT BAI, 98.94 % owned by Bajaj Auto, assembles and markets Bajaj Pulsar 135, 180 and 220. The loss-making subsidiary has localized some of its assembly functions to lower the custom duties. It may continue to follow the localization of subordinate assemblies further to this economical year. PT BAI has increased the loss of Rs 92.17 crore when it began to operate in 2006-07. The previous year, it posted a loss of Rs 9.35 crore. It was stated that for some point of time, the Rajiv Bajaj-led company has been looking forward to expand its operations even outside India with the products which have been a huge success in the home market.

The Indonesian two-wheeler market has numerous similarities with the Indian market. In the previous year, it sold 81% more bikes in Indonesia at 21,586 units as compared to 11,954 units in the corresponding previous time period.