Singapore: Automobile major Bajaj Auto plans to capture significant market share in the South East Asian region, beginning with strategic tie-ups with partners in Indonesia and Philippines for manufacture facilities.

"We plan to set up an assembly line and manufacturing facility in Indonesia shortly," Sanjay Bajaj, vice president (finance) of Bajaj Auto, who is in Singapore to attend a three-day meet of potential investors in the region, said.

The company has chosen Indonesia and Philippines for the initial phase and will subsequently make inroads into other countries of the region, he said.

The entry into the region would mean setting up of manufacturing facility and finding representatives. The company is looking for strategic tie-up for exporting its three-wheeler kits to these markets.

"We are considering to make Indonesia as our hub to cater to the South East Asia," Bajaj said, adding the company was also looking at the countries like Philippines, Malaysia and Singapore as potential market for its products.

"We have selected Indonesia, since we already have a representative in that country and our global technology partner Japan-based Kawasaki also has a plant in Indonesia," he said.

South East Asia is an attractive market for the Bajaj Auto, which has a large share of domestic market. The company is also waiting implementation of free trade regime in the region to further advance its presence.

"We are also waiting for AFTA (ASEAN Free Trade Agreement) to happen, which will give us opportunity to market products with a lower tariff," he said.

The company is collaborating with Kawasaki Heavy Industries on a new 125cc bike for the world and domestic markets.

Meanwhile, the company has also successfully embarked on strategy to reduce costs through initiatives in indigenisation, value engineering, supply chain management and review of fixed cost with special focus on motorcycle segment.

PTI