Bajaj Motors is planning to hike its production capacity of its entry level bikes in India. It has recently witnessed buoyant sales in 100 cc segment and now intends to re-enter the segment with full force. It had earlier stated that it will move from 100 cc segment and lure customers from upper segment.

However, it launched 100cc Discover DTS-Si bike in July 2009 priced at Rs. 40,000 (ex-showroom, Delhi). The 100 cc segment grew by 38.60 percent during July-September 2009. "Production per month (in the entry-level segment) is geared up for 85,000 units. Further increase in capacity will be in place by January," said Bajaj Auto Ltd (BAL) Chief Executive Officer (Two-Wheeler) Sridhar Bajaj.

Bajaj did not divulge any further details about the production capacity hike as the current capacity is sufficient for the upcoming lean months of November and December. Bajaj currently has three manufacturing plans at Waluj, Chakan and Pantnagar and has manufacturing capacity of 2.6 lakh units per month.

Bajaj also intends to enter the four-wheeler market with its ultra cheap car that will be pitted against Tata Nano. The ULC project has not made any significant progress so far where Bajaj has joint venture with Renault and Nissan to produce the car.