Yamaha’s two-wheeler plant in Chennai is likely to start operations in the middle of the next (calendar) year.
Last year, the Japanese automobile company signed a memorandum of understanding with the Tamil Nadu Government to set up a Rs 1,500-crore plant.
The plant, with a total production capacity of 1.8 million units, will produce both scooters and motorcycles, said Asano Masaki, Managing Director, Yamaha Motor India Sales, an entity formed early this year to handle sales and marketing.
The Chennai plant may also be considered for exports.
Other plants
Currently, Yamaha has a manufacturing plant in Surajpur (Greater Noida) with a production capacity of one million units a year. This plant also exports motorcycles to South America and Asean countries.
Small market share
The company also has a factory in Faridabad for spare parts.
Yamaha, which has been in India since 2008, sells motorcycles in the 110-150cc range. A 100-110cc bike is reportedly on the anvil.
Last year, Yamaha sold 3.5 lakh units, including 30,000 scooters. The company entered the scooter segment with the launch of Ray in September.
In a market dominated by Hero and Honda, Yamaha has a very small share of three per cent.
Masaki is betting on Ray to help improve the company’s market share and visibility.
Bollywood actor Deepika Padukone endorses Ray. This year, the company is targeting five lakh units, of which 50 per cent will come from scooters, said Masaki, at a press briefing in the city.
Last year, Yamaha exported 1.4 lakh motorcycles. The target this year is 2.1 lakh units.