Bajaj Auto plans assembly unit at Brazil free-trade zone

Bajaj Auto Ltd, India's second-largest two-wheeler manufacturer, is planning to set up an assembly plant in the Manaus free-trade zone in Brazil, in the next financial year (2010-11).

"We are looking at setting up an assembly plant at a place called Manaus, in Brazil, in FY11. It is a free-trade zone," Bajaj Auto vice chairman Madhur Bajaj said.

He said the company is in the process of studying the site and working out financial details. In fact, the company has been in the lookout for a suitable site in the South American nation for the past few years.

The company operates an assembly plant in Indonesia and Bajaj said, "One of our distributors has already set up a plant in Egypt. They are also looking to set up plants in Nigeria, Iran and Colombia."

Bajaj Auto is also likely to expand its domestic operations and may take up expansion of its facility at Waluj near Aurangabad, where it manufactures the Kawasaki range of motorcycles and three-wheelers.

Bajaj said the Aurangabad facility has enough land for expansion and that the company is looking at shifting production of commercial vehicles there.