Home-grown two and three-wheeler major Bajaj Auto will be investing Rs 750 crore in capital to set up capacities of its electric vehicle (EV) facilities for two and three-wheelers and ramping up its premium motorcycle volumes. The CapEx for FY23 was amongst the highest annual investment made by the company in adoption of new technologies and capacity creation in recent times. The company has been periodically investing in CapEx even during the tough pandemic years. The Pune-based auto major had spent Rs 620 crore and Rs 183 crore as CapEx in FY22 and FY21 respectively. The cumulative CapEx of the company from FY16 to FY18 stood at around Rs 640 crore and it invested Rs 195 crore in FY20.
According to Dinesh Thapar, Chief Financial Officer (CFO), Bajaj Auto the current investment is a step-up over the past. "Capex for the first half is closer to about Rs 335340 crore. The CapEx is going on clearly to establish the EV facility that we have for two-wheelers and also an EV plant for three-wheelers in Waluj. A part of it will also be spent on the expansion of a new site at our Chakan facility for premium motorcycles and then, of course, routine CapEx.
This story is from the 15th November 2022 edition of Autocar Professional.
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This story is from the 15th November 2022 edition of Autocar Professional.
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