Bajaj Auto Ltd. EXPLORES SIXTH MANUFACTURING PLANT

BAJAJ-AUTO Bajaj Auto is in discussions with state governments to establish its sixth manufacturing plant as rising demand for premium motorcycles and electric two-wheelers puts pressure on its existing production capacity. Rakesh Sharma, joint managing director of the Pune-based automaker, shared the development in an interview with Moneycontrol. The company is evaluating potential locations across India for the proposed facility. Demand for motorcycles under its Pulsar, KTM and Triumph brands, along with Chetak electric scooters, has been increasing across domestic and export markets. Bajaj Auto is witnessing contrasting trends across its product portfolio. While demand for premium motorcycles and electric scooters is stretching its manufacturing capacity, the company is losing ground in the entry-level motorcycle segment. The automaker has recorded strong growth in higher-capacity motorcycle categories, supported by rising demand for premium products in India and overseas markets. In the 150cc-200cc motorcycle segment, where Bajaj Auto is the second-largest player, the company registered the highest year-on-year volume growth of 33% during the six months ended September 2026. Bajaj Auto has faced challenges in the below-150cc motorcycle segment. According to data from the Society of Indian Automobile Manufacturers, the company's motorcycle sales in this category fell 24% during April-September 2026, even as the overall segment expanded by 6%. Within the category, sales volumes in the 100cc economy segment declined 26%. The proposed sixth manufacturing plant could help Bajaj Auto address capacity constraints in its faster-growing premium motorcycle and electric two-wheeler businesses as demand continues to expand across domestic and international markets.