Auto World” Allocates 45 Million AED for Establishing a Facility in JAFZA

Auto World International LLC, a prominent regional distributor for Bajaj Auto Limited of India, has announced a significant investment of AED 45 million to establish a new distribution and logistics center in the Jebel Ali Free Zone (Jafza). This facility is set to enhance Auto World International’s capacity to cater to the rapidly growing markets in Africa and the Middle East, specializing in affordable and fuel-efficient two-wheeler and three-wheeler motorcycles.

The new center will cover an area of 162,000 square feet and will include an assembly plant for Bajaj motorcycles as well as three-wheelers, alongside storage and distribution spaces for spare parts, tires, and lubricants. The center is expected to be operational by 2026 and will support the launch of new product lines through partnerships with global manufacturers, further cementing the company’s market presence.

The market for two-wheeler and three-wheeler motorcycles is experiencing rapid growth, particularly in emerging economies. This growth is fueled by shifting mobility needs driven by urban expansion, the rise of e-commerce, and an increasing demand for direct delivery solutions. Sector analysts predict that the two-wheeler motorcycle market in Africa will witness an annual growth rate of nearly 5%, spurred on by rising demand for economical and fuel-efficient vehicles.

Vishal Kumar Lakhani, a manager at Auto World, expressed that, “This facility marks a crucial step towards advancing our growth strategy. Since 2008, our extensive connectivity network, sophisticated infrastructure, and supportive business environment in Jafza have enabled us to serve the rapidly growing markets in Africa and the GCC countries. With this investment, we reaffirm our commitment to the region and the Bajaj brand.”

Abdullah Al Hashimi, CEO of operations for free zones at DP World, GCC, noted, “The expansion of Auto World underscores the strength of the integrated trade and logistics ecosystem in Jafza, which today houses 940 companies from 88 countries and contributed nearly AED 102 billion to the automotive trade sector last year alone. We take pride in supporting our long-standing partners like Auto World, who connect global manufacturers to high-potential markets through Dubai.”

The project is projected to create over 100 direct and indirect job opportunities, thus supporting the growing transport and logistics ecosystem in Dubai. It also strengthens the UAE’s role as a pivotal trade hub connecting manufacturers to global markets.

The investment agreement was officially signed in the presence of Abdullah bin Damithan, CEO and Managing Director of DP World, GCC; Abdullah Al Hashimi, CEO of operations for free zones at DP World; Kumar Moteeram Lakhani, Chairman of Auto World; Monish Lakhani, General Manager of the company; and Vishal Lakhani, Manager at Auto World.

Auto World has been operating from Jafza for over 16 years, leveraging its world-class, multimodal infrastructure to distribute Bajaj motorcycles across more than 25 countries. This initiative aligns with DP World’s broader strategy to develop the automotive trade sector in the region, which includes plans to establish the world’s largest car market in Dubai, expected to double the current annual sales of AED 6.8 billion.

Business

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