India Yamaha Motors Pvt. Ltd., a unit of the Japanese auto giant Yamaha, is all set to invest Rs 1,500 crore to set-up a new plant for manufacturing two-wheelers over the period of coming five years. The new plant of the company is a part of their plans of reaching a total sales figure of 2 million vehicles by year 2016.
With an initial capacity of 4,00,000 unitsand manpower of 1,800 people, the new Yamaha plant in Chennai will commence production by the starting of year 2014. Later on, the firm plans to take this capacity to 1.8 million units gradually by year 2018.
While speaking on the company’s future expansion plans, Mr. Hiroyuki Suzuki, CEO & MD at India Yamaha Motor, said, "We are very pleased with this development as this is in line with YMC's medium-term management plans of enhancing local production levels to meet the demand growth in emerging markets such as India and their export markets.”
He added that the Indian two-wheeler industry has witnessed much growth in the last few years, attributable to increased disposable income levels among a rapidly expanding middle class. The company expects the industry to attain 20 million units level by 2016 when they are targeting to sell 2 million units and achieve 10% market share.
