Bajaj Auto plans CKD assembling at Indonesian plant

Bajaj Auto (BAL) is likely to switch to assembling completely knocked-down (CKD) parts of its motorcycles in its Indonesia plant in the second half of 2010-11. the company's Indonesia based subsidiary, PT Bajaj Auto Indonesia, assembles and markets Pulsars.

BAL's subsidiary has localised some of the assembly operations to bring down the customs duties. It is likely to continue to pursue the localisation of sub-assemblies in 2010-11.

Also, the product portfolio in Indonesia is expected to be expanded under the Pulsar brand with the Pulsar 135 LS. With the addition of Pulsar 135 LS to the model line up and with increased local sub-assembly operations, BAL is hoping that the Indonesia subsidiary will be able to reduce its losses this financial year.