Bajaj Auto has started assembling two-wheelers and three-wheelers in Tanzania in a bid to boost its presence in the African market.

So far, the company was supplying two- and three-wheelers in semi knocked down form. Media reports in Africa, however, said the company has now started simple assembly of some parts at its plant in Mikocheni. The plant is expected to create 500 direct jobs in the country.

Bajaj Auto plans to invest US$ 20 million in the Tanzania assembly plant, local news reports have suggested. The company, however, did not give out details. "Our operations related to selling SKD units are as per our regular export procedure. We would not like to respond beyond this at this juncture," it said in reply to email queries.

The company has been selling its vehicles in Tanzania through a local agent - Fair Deal Auto of Dar es Salaam.

Africa remains a focus area for Bajaj Auto, which aims to double exports in the next 2-3 years. It has lately increased presence in Nigeria, Uganda, Kenya and Angola.

In the last financial year, Africa and Middle East contributed 48% of Bajaj Auto's overall exports, with Africa as the largest contributor.

The company exported 1,203,718 vehicles during the year - representing a growth of 35% over the previous year. Export revenues were Rs. 45.5 billion (US$ 991million), or 28.5% of the company's total net sales.

"Bajaj has been doing well in Africa. Assembling vehicles in Tanzania will help expand operations. We need to see whether the company utilises the plant for exporting vehicles to the neighbourhood," said an analyst.