Yamaha's Chennai Plant to get Operationalized by 2014

Yamaha recently opened a world class R&D center in India and now Japanese two-wheeler manufacturer is expecting its new two-wheeler plant in Chennai to get operationalized by mid-2014. Yamaha signed a memorandum of understanding (MOU) with the Tamil Nadu Government to set up a Rs 1,500-crore plant, last year. The new plant will have a total production capacity of 1.8 million units including both scooters and motorcycles, said Asano Masaki, Managing Director, Yamaha Motor India Sales, an entity formed early this year to handle sales and marketing.

Yamaha India may also use the Chennai plant for exports as the company is developing a low cost bike for south eastern markets. Currently, Yamaha is operating a manufacturing plant in Surajpur (Greater Noida) with a production capacity of one million units a year. Yamaha uses this plant to fulfill domestic demands as well as export motorcycles to South America and Asian countries. The company also owns a spare parts factory in Faridabad.

Yamaha sells motorcycles in the 110-150cc range and also its maiden scooter Ray. Yamaha is 5th largest motorcycle manufacturer with a 3.5 lakh units annually, including 30,000 scooters and bikes. Yamaha's market share in India is limited to only 3 per cent and to increase its market share, Yamaha announced to develop a new 100-110cc bike for India, which will also be exported to other developing countries. The company entered in the scooter segment last year with the Ray, the company is betting high on the Ray. Yamaha is also gearing up to launch a new 125cc scooter in India. The company is targeting five lakh units in fiscal 2013-14, of which 50 per cent will come from scooters, said Masaki.  

Source: Hindu Business Line