Yamaha India to touch 3 million local production this year
Completely owned subsidiary of Japan’s Yamaha Motors, Yamaha Motor India is all set to cross 3 million local production units later this year. With demand for two wheelers continuously on the rise, Yamaha sees India as their second largest market in the world, while Indonesia continues to be in the lead.
Yamaha Motors plans to double their two wheeler market share in India by 2017-18 while production is steadily rising. Currently, Indonesia is the largest market for Yamaha Motors with Q2 2014 sales at 715,000 units, up from 655,000 units sold in the same period last year.
At the second spot this year, India and Vietnam are tied with 140,000 units sold in April-June 2014, while Thailand has slipped to the fourth spot with just 55,000 units sold. In 2013, for the same period Vietnam posted sales of 167,000 units, while Thailand and India had sold 106,000 units. This shows the growth in India is higher than in Vietnam and Thailand.
To ensure its emergence as the company’s second largest market after Indonesia, Yamaha India is in the process of setting up a new plant in Chennai which could come into effect by the end of 2014. This new plant has attracted investments of around INR 2,550 crores from the company and vendors and will have an initial capacity of 4.5 lakh units per annum to be extended to 1.8 million units by 2018.
This new Yamaha Motorsâ€™ facility in Chennai along with their other facility in Surajpur will have a total capacity of 3 million bikes and scooters per annum.The upcoming Chennai plant will also act as an export hub for companyâ€™s two wheelers to South American and South Asian markets.
Following their keen interest in ensuring that India emerges as the companyâ€™s second largest market, Yamaha Motors has initiated Project Indra (Innovation and New Development based on Responsible Analysis). Under this venture, the company expects to bring in the worldâ€™s most affordable motorcycle at INR 30,000 ($500). Export of spares out of India will be increased from INR 60 crores to INR 360 crores while Indian suppliers will be implored to concentrate on quality while keeping costs to the minimum.