Bajaj auto production resume in aurangabad plant: Bajaj Auto to resume production at Aurangabad plant for export

MUMBAI: India’s largest exporter of two- and three-wheelers Bajaj Auto got the nod from the state authorities to start production at its Waluj plant in Aurangabad which makes vehicles for export markets.

The company has received approval for 850 workmen to attend work at Waluj, said people in the know. Production of knocked-down kits of motorcycles and commercial vehicles for export will resume at the said plant from Thursday.

The Maharashtra state government has however withdrawn its decision regarding restarting operations at the Chakan automotive cluster near Pune. The municipal commissioners of the Pune and the Pimpri-Chinchwad Municipal Corporation on Sunday ordered to seal all areas within their limits till 27 April to contain the rising number of Covid-19 cases in these cities. Only essential goods industry can resume operations as long as employees were staying within the campus.

The company has significant pending export orders which it was keen on executing at the soonest. It exports half of its production to countries in Latin America, Africa, and southeast Asia among other places.

Rakesh Sharma, executive director of Bajaj Auto said that the company wanted to begin some kind of production as there was Rs 1,000 crore worth of export orders to serve, ET reported on Wednesday. That will ensure that money started flowing, easing the ongoing cash flow challenges, he said.

For the domestic market, Bajaj Auto has enough stock of BS-VI emission norms compliant vehicles to recoup a part of lost volume of March and April in the coming months.

Multiple automakers have said that they were not in a hurry to resume production for the domestic market as there would be supply chain management issues and there was sufficient stock in their channels to serve any pent-up demand once the lockdown ended.

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