India Yamaha Motor Pvt. Ltd signed a Memorandum of Understanding with the government of Tamil Nadu today which approved the construction and operation of a new two-wheeler manufacturing facility in the state. The new facility will join the existing network India Yamaha factories at Surajpur (UP) and Faridabad (Haryana) to meet the exploding demands of Indian two-wheeler market.
The factory will come up on a space of 44,000 sq. m at an industrial park in Vallam Vadagal on the outskirts of the Chennai city. The factory will employ almost 1800 people and will have an annual production rate of 400,000 units at the start. Production capacity of the facility will be increased in later stages to a level of 1.8 million units per year by 2018, and employment will increase to 6,500 people.
Commenting on the occasion, Mr. Hiroyuki Suzuki, CEO & Managing Director, 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. 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. We expect the industry to attain 20 million units level by 2016 when we are targeting to sell 2 million units and achieve 10% market share.”
“We would also like to thank all the concerned Tamil Nadu government departments, especially Guidance Bureau which had extended its complete support to this project by facilitating as a true single window body”, he added.
India Yamaha forecasts an investment of more than Rs. 1,5000 crores over the next five years.