Yamaha has received approval from the government of India to build a new factory in Chennai in the southern state of Tamil Nadu. Joining an existing factory near New Delhi, the new Chennai plant is expected to increase Yamaha‘s production capabilities in India to 2.8 million units a year by 2018.
The new factory will be built on a 109-acre lot in Vallam Vadagal on the outskirts of Chennai. Set to open in 2014, the Chennai plant will have a production capacity of 1.8 million units by 2018.
The Chennai plant will primarily be used for manufacturing parts and assembling scooters. Yamaha’s facility in Surajpur, outside New Delhi, will focus on producing motorcycles such as the YZF-R15 and the FZ-16. The Surajpur plant currently builds 600,000 units a year but production is expected to increase to a million units a year by 2018.
Yamaha estimates India’s demand for motorcycle to continue growing to 25 million units in 2018.