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Bajaj Auto Ltd, a major player in India’s two-wheeler market, has announced it will invest up to $10 million in its subsidiary, Bajaj Brazil. This investment, which is about ₹84 crores, aims to support the company’s growth and meet rising demand in Brazil. The funds will be released in phases based on business needs.
Bajaj Brazil was established on March 31, 2022, and has made strides in the Brazilian motorcycle market. The company recently opened its manufacturing facility in the Manaus free trade zone in June 2024, with an annual production capacity of 20,000 units in a single shift.
Currently, Bajaj Brazil sells motorcycles under the ‘Dominar’ brand and generated around ₹250 crores in revenue last year from the sale of about 9,000 motorcycles. This investment will ensure Bajaj Auto maintains full ownership of its Brazilian operations.
The Manaus plant is Bajaj Auto’s first manufacturing site outside India, allowing the company to directly produce motorcycles rather than relying on distribution. The facility covers 9,600 square meters and is set up for engine assembly, vehicle assembly, and testing, with plans to potentially increase production capacity to 50,000 units per year.
Rakesh Sharma, Executive Director of Bajaj Auto, said, “With our own plant in Brazil, we have significantly enhanced our ability to meet local demand. The ‘Dominar’ brand has been well-received since its launch 18 months ago, and the new manufacturing capabilities will help us expand our distribution network and introduce new products.”
Additionally, Bajaj Auto has partnered with UK motorcycle maker Triumph to develop mid-weight motorcycles, leveraging Triumph’s existing manufacturing presence in Brazil. The Manaus location provides Bajaj Auto with valuable fiscal incentives and access to essential supply chains.
According to IMARC Group, Latin America’s two-wheeler market reached 10.6 million units in 2022 and is expected to grow to 23.7 million units by 2028, with a compound annual growth rate (CAGR) of 14.2% during that period.
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