In Short:
India Yamaha Motor plans to expand its two-wheeler production capacity near Chennai, investing ₹180 crore, which will create over 400 jobs. The expansion aims to meet rising market demand, increasing monthly output by 35,000 motorcycles and 45,000 scooters. With a total investment reaching ₹1,969 crore, this expansion is vital for IYM’s growth in the southern market, especially Chennai.
Yamaha Set to Rev Up Production in India with Exciting Expansion Plans
India Yamaha Motor (IYM) is gearing up to roll out an ambitious expansion at its factory located near the vibrant city of Chennai. This distinguished automotive powerhouse from Japan has submitted a pre-feasibility report outlining its bold plans to boost two-wheeler production capacity. What’s more, they are seeking environmental clearance to embark on this significant journey. To make this vision a reality, IYM plans to invest a whopping ₹180 crore, which is set to create over 400 new job opportunities!
Why the Expansion?
As highlighted in the report, “In response to market demands, India Yamaha Motor aims to expand its existing unit.” This strategic decision reflects their commitment to meeting the growing needs of the two-wheeler market.
Manufacturing Powerhouse
The company operates cutting-edge manufacturing facilities at two key locations: Surajpur in Uttar Pradesh and Vallam Vadagal near Chennai, Tamil Nadu. Together, these facilities produce motorcycles not only for domestic consumers but also for international markets, boasting a manufacturing capacity of 1.5 million motorcycles per year.
Detailing the Production Capacity
The expansion plans specifically target the operations at Vallam Vadagal, which sprawls over a 111-acre area and started its journey in 2015. This proposed enhancement aims to introduce facilities capable of producing an additional 35,000 motorcycles and 45,000 scooters every month. So far, IYM has already invested ₹1,789 crore in Vallam Vadagal, and with the ongoing expansion, the total investment is projected to reach ₹1,969 crore.
Riding the Waves of Demand
With an impressive surge in demand—particularly in the motorcycle and scooter sectors growing by an astonishing 25-30% in recent years—IYM is determined to strengthen its foothold in this thriving market. Currently, the company holds over 5% of the market share, but they are aiming higher!
Southern Market Focus
The southern region is essential to IYM, accounting for around 30% of the total two-wheeler demand and nearly 50% of the company’s total sales. Moreover, Chennai stands out as a strategic market, thanks to its close proximity to the seaport.
Job Creation and Community Impact
The existing manufacturing setup has already created around 4,743 jobs. With this new expansion on the horizon, IYM is on track to add approximately 431 more positions, further contributing to the local economy.
