In an effort to improve its automotive supply chain throughout the Middle East and Africa, Autoworld International, a regional distributor for Bajaj Auto of India, announced a Dhs45 million investment to build a new logistics and distribution center in Dubai's Jebel Ali Free Zone (Jafza).
The 162,000-square-foot facility will house spare parts, tires, and lubricants in addition to an assembly factory for Bajaj bikes and three-wheelers. The project, which is anticipated to be finished by 2026, is positioned to satisfy growing demand in the region's cost-sensitive, high-growth markets.
In terms of our growth strategy, this facility represents a significant advancement. Since 2008, Jafza's infrastructure, connectivity, and business-friendly atmosphere have enabled us to service high-growth markets in the GCC and Africa, according to Vishal Kumar Lakhani, director of Autoworld.
In order to strengthen the company's regional presence, the facility will also facilitate the launch of new product lines through alliances with international manufacturers. More than 100 direct and indirect employment are expected to be created by the investment.
Almost 48% of Dubai's entire automotive commerce by value in 2024 will come from Jafza, which remains a major player in the industry.
940 automotive companies from 88 countries are based in the free zone, which last year enabled commerce in automobiles worth around Dhs102 billion.
"Autoworld's growth demonstrates the robustness of Jafza's integrated trade and logistics network," stated Abdulla Al Hashmi, COO, DP World GCC's Parks and Zones. "We are honored to assist enduring partners like Autoworld, who are utilizing Dubai to link top-tier manufacturing with highly promising markets."
Autoworld, which has been headquartered in Jafza for over 16 years, sells Bajaj cars to over 25 countries, with Dubai serving as its primary hub.
The investment is in line with DP World's larger goals to grow the automotive industry, which include plans to construct Dubai's largest vehicle market, which is expected to treble the current yearly sales of Dhs6.6 billion.