Bajaj Auto to invest Rs 84 crore to fund expansion in Brazil

In the September quarter results, Bajaj Auto has noted a steady recovery in exports, and a record quarter of sales in South America.

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26 Aug, 2025 12:21

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Bajaj Auto has approved an investment of up to $10 million or Rs 84 crore in its subsidiary in Brazil in a staggered manner to fund expansion and cater to the growing demand for motorcycles.

"Additional capital infusion by Bajaj Auto Limited in Bajaj Brazil is to fund for business expansion and the needs of the growing business," the company said in an exchange filing on October 16.

The proposed investment being a related party transaction will be done on an arm's length basis at an assumed exchange rate of Rs 84 per US Dollar, the company said. There will be no change in the holding structure, and Bajaj Brazil will continue to remain a wholly owned subsidiary of Bajaj Auto.

In the September quarter results, Bajaj Auto has noted a steady recovery in exports, and a record quarter of sales in South America.

Read More: Bajaj Auto Q2 net profit rises 9% to Rs 2,005 crore

Bajaj Brazil was incorporated in 2022 to address the 'attractive opportunity in the growing motorcycle market in Brazil,' and a manufacturing facility was commissioned in Manaus Free
Trade Zone - – first such facility outside India - with an annual capacity of 20,000 units on a single shift basis.

Bajaj Brazil sells motorcycles under the ‘Dominar’ brand name, with 9,000 units sold in the last four quarters ending September 30. Within South America, Bajaj Auto said it had seen volume growth in Argentina, Mexico, Peru and Guatemala during FY24.

The Latin American markets have achieved its highest sales in FY24, despite company facing challenges in exports due to geopolitical uncertainties, hyper-inflation and shortage of dollar in some export markets. Exports contributed to 33.2% of Bajaj Auto's sales in FY24.

For CY23, Bajaj Brazil clocked sales of over 4,300 units, During CY23, recording an annual turnover of Rs 129 crore.

Bajaj Auto has subsidiaries in Spain, the Netherlands and Thailand, aside of Brazil.