Japanese two-wheeler manufacturer Yamaha
will invest more than Rs 200 crore for its expansion plans that would take the total investment in the Chennai
factory to Rs 1,500 crore, a top official said here on Friday.
"Investments will be about Rs 200 crore.. This will be for new Assembly line in the factory.. That will take the production
to nine lakh units..," India Yamaha
Motor, Deputy Managing Director - Business Expansion Group, Riuji Kawashima, said.
He was talking to PTI after the rolling out of the company's one millionth vehicle from the production
line at the factory in Oragadam near Chennai.
The company has three state-of-the-art manufacturing facilities in India one each at Faridabad
(Uttar Pradesh) and Chennai.
With the setting up of new assembly line, the production
will go up to nine lakh units by March 2018 from the current six lakh, he said.
At the Chennai
plant, the company manufactures scooterettes — Fascino, Ray Z, Ray ZR, Alpha and motorcycle Saluto.
Fascino drives the sales volume and the company expects to sell more than one million units this year compared to 9.48 lakh units sold last year.
To a query, he said, with the expansion of Chennai
plant, the number of employees would increase to 4,000 from the current 3,400 people.
However, he declined to reveal the newer models that would be produced from the new assembly line once it becomes operational.
In terms of volume, India is the second largest market for Yamaha
after Indonesia, he said.
Exports contribute about 20 percent of the total production
with products being shipped to Sri Lanka, Nepal, Bangladesh and North of Pakistan, he said.
The FZ range of motorcycles, scooterettes Ray ZR and Fascino contributes the majority of export volume.
unit is of strategic importance to the company's local and global business.
Apart from serving the domestic market, the Chennai
plant is aimed at functioning as a manufacturing base for the predominantly African market, ASEAN and Latin American countries.
According to India Yamaha
Motor, Vice-President, Mukesh Kumar, the Chennai
facility produced 2.29 lakh units in 2015, and in 2016 it went up to 4.17 lakh units.
Out of the one million produced from the Chennai
factory, 8.5 lakh units would serve the domestic market while 1.5 lakh units would be shipped overseas.
plant spread across 180 acres, is the first in the Yamaha
group to have a vendor park near the facility.
The vendor park has nine vendors who have invested Rs 760 crore till date, employing more than 1,900 people.
According to a company official, one vehicle is produced every 24 seconds while 2,100 units produced on a single day with the plant operating in two shifts.
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