Yamaha India's New Chennai Plant Delayed Due to Economic Slowdown

The Japanese two-wheeler maker Yamaha was planning to start a new production facility in Chennai with an investment of Rs 1,500 crore by early 2014. But due to the economic slowdown, the company has decided to postponed it till the end of 2014 or early 2015.

Yamaha India Motor, CEO and managing director, Hiroyuki Suzuki said, "We have decided to postpone the Chennai plant operalisation by almost a year as the economy is not doing that well. We have to follow the Indian market conditions and have our schedule accordingly."

The work at the Chennai facility were started recently and now because of the slowdown it will take more time then the earlier. However, the 10 models that is being manufactured at the moment will be roll out of the two Yamaha state-of-the-art Plants at - Faridabad (Haryana) and Surajpur (Uttar Pradesh). However, reports suggest that the company is also developing a new scooter and a commuter bike on the local market in India, which are expected to come in the market by 2016.

Source: The Economic Times