Yamaha India eyes expansion as plants near full utilisation, sounds cautious on E2Ws
Yamaha Motor India plans to expand its manufacturing capacity as its current plants approach full utilization within the next few years. The company is considering expanding its existing Chennai facility rather than acquiring new sites, while focusing on balancing production quality with cost competitiveness.
Why it matters
Yamaha's strategic manufacturing decisions reflect broader trends in the Indian automotive sector as it positions itself as a global growth hub.
Yamaha Motor India expects its combined production capacity in India to be fully utilised within the next two to three years, prompting the Japanese two-wheeler maker to evaluate expansion of its manufacturing footprint, even as it remains undecided on whether to set up a new plant.
The company currently has annual production capacity of nearly 1.5 million vehicles across its facilities in Kancheepuram, Tamil Nadu, and Surajpur, Uttar Pradesh. The company is already in discussions with the government on optimising and expanding its manufacturing operations.
“Currently, my feeling is that within two or three years, this capacity is going to be fulfilled. In that case, we have to start something for the expansion of the plants,” Hajime Aota, Chairman, Yamaha Motor India Group, told reporters in Chennai, at the global launch of the YZF-R2, the company’s first offering in the 200cc segment.
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