Bajaj Auto has announced that the company will stop production of two-wheelers at its Akurdi Plant in Pune from September 1. The production facilities will be shifted to Aurangabad Plant of the company.

The reason behind the move is tax benefits that company will get in Aurangabad. As per company statement, the company will save Rs 1,000 per unit by this shift in the production facility. The company officials told that they get no tax or government benefits at their plant in Pune.

The Akurdi plant has been virtually unused in recent times compared to other production facilities of the company. The company has come up many a times with VRS plans to reduce the labour.

The Akurdi plant has a production capacity of 0.5 million vehicle per year. The Akurdi plant made 350,000 vehicles last year. This may help company to save lot of money and remain competitive in two-wheeler market.