Kawasaki to Expand Chakan Facility with an Eye on Export from India | CORPORATE ETHOS

Kawasaki to Expand Chakan Facility with an Eye on Export from India

By: | August 4, 2018

Aug 4: Kawasaki has set big expansion plans for its manufacturing unit in India, according to various reports. The Japanese motorcycle manufacturer is now said to be having plans for transforming its manufacturing unit in Chakan to a manufacturing hub that would serve both domestic and foreign markets.

Once executed, the Chakan facility will manufacture motorcycles for domestic sales as well as for export to markets like African and Latin America. The plan will also make way for price reduction in models like Z250 and Ninja ZX-10R due to localized production.

The Chakan facility is expected to receive an increase in production capacity for the transformation. Reports suggest that the production capacity of the unit could be increased to 10,000 units annually to meet the demand for exports. Kawasaki made an investment for a 10,000 sq. Metre production facility in Chakan, Pune during last year. The company had been assembling most of its products at a plant leased from Bajaj.

Kawasaki has already employed engineers from Japan to work in its Chakan facility. The move is expected to benefit the company by bringing down the cost of producing components, especially for models that are aimed at the emerging markets. Recently, Kawasaki had confirmed that the company was mulling over producing a 200 cc motorcycle.

Kazuo Ota, the chief of Motorcycles and Engine Division, Kawasaki, has also emphasized on the production of models with the Indian market in mind, keeping in mind the demand for its models in the country.

Currently, Indian market accounts to around 30% of the company’s global sales. Kawasaki is now aiming to raise its sales to 5000 motorcycles by 2020. The company had already started the spadework for the same, and is now working upon doubling the count of Kawasaki-exclusive dealership in India. The company has around 30 exclusive dealers in India.