Bajaj Auto, the country's second largest automobile maker, is likely to set up a motorcycle and three-wheeler plant in association with the Pakistan-based Saigal family.

Bajaj Auto chairman and managing director Rahul Bajaj told Business Standard that the company planned to enter Pakistan, adding that the project was being handled by Sanjiv Bajaj, executive director, Bajaj International, a part of the Bajaj group.

Sanjiv Bajaj said the company was weighing the possibility of setting up a production facility where most of the motorcycle and three-wheeler components would be made. Some minor components might be exported from India.

He also said Bajaj Auto was in talks with the Saigal family, which had expertise in the automobile business. Bajaj said the nature of investment in the project was still unclear as it would take a couple of months to be finalised.

According to him, the motorcycle and three-wheeler market in Pakistan was not as big as India's. "So an investment decision will be taken keeping all the factors in mind," he said, referring to factors like Pakistani laws that require most components to be produced there.

Bajaj Auto has a distribution network in 50 countries. It has a dominant presence in Sri Lanka, Mexico, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia.

The company has increased its market share in India in the first half of the current year from 23 per cent to 27 per cent. It recently launched the indigenously designed 125-cc Bajaj Discover bike and plans to launch two gearless bikes.

It also recently signed up Hollywood star Jackie Chan for an advertisement campaign to promote "Discover". Chan will promote the product as part of the campaign called "Master and Masterpiece".

Ride across the border

• Bajaj on song: Bajaj will have a tie-up with the Pakistan-based Saigal family. Details to be finalised in two months
• Local Yorker: Pakistani law states most components must be locally produced. Investment decision will be based on such factors
• Export gains: Some components might be sourced from India