Yamaha to start its third plant in Chennai from next month

Japanese manufacturer, Yamaha Motor Company Ltd, is going to commission its third unit in Chennai with a capacity to produce 4,50,000 two-wheelers. The new unit will employ 1,800 people.

The Japanese company has invested around Rs 1,500 crore to build the manufacturing unit in Tamil Nadu, reported the Economic Times.

The trial production has already started.

Yamaha Motor India vice-president for sales and marketing Roy Kurian said that the company would expand the plant's capacity to 1.8 million units by 2018.

The two existing units of the company has a capacity to produce one million two-wheelers a year and the new plant is part of its long-term growth plans, both in terms of local sales and exports.

The company 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% 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.

(Image: Indiatimes)