Yamaha India is going to start its third manufacturing facility, located in Chennai, next month in the country. From the third unit, the production capacity will be 4,50,000 units. The plant, which has come up with an investment of Rs 1,500 crore in Chennai, has already started trial production, a senior executive said.
The Japanese firm is aiming to expand the plant's capacity to 1.8 million units by 2018, Yamaha Motor India vice-president for sales and marketing Roy Kurian said. The two existing units of the company has a capacity to manufacture one million two-wheelers a year and the new plant, which will employ 1,800 people, is part of its long-term growth plans, both in terms of local sales and exports.
It is looking to add 1,00,000 units to exports, taking the number to 2,50,000 lakh this year. Domestic sales are expected to reach 6,30,000 units in 2015 from 5,60,000 last year.
The company has an annual sales target of 1 million units by 2017 and is hopeful of achieving the long-desired 10 per cent market share in 2018. India is the third-largest market for Yamaha based on volume, behind Indonesia and Vietnam. Next year, it expects India to become the No. 2 market for the company, Kurian said.