Escorts Yamaha To Raise Capacity

As part of its expansion plans, Escorts Yamaha Motor (EYML) has decided to enhance the total manufacturing capacity to four lakh vehicles per annum by 2000 as against the present capacity of 2.75 lakh units. The total investment earmarked for the expansion is Rs 525 crore.

The company has planned to launch a four-stroke motorcycle to be manufactured at its Surajpur plant in the second quarter of 1998.

It is also in the process of implementing the expansion of its Faridabad plant for the manufacture of four-stroke motorcycles which are expected to hit the roads in 1999, an Escorts Yamaha Motor release stated.

 

The company is the largest exporters of motorcycles and currently has a retail market share of 24.5 per cent.

After the introduction of the new models, the company expects a market share of around 28 per cent in 1998-99, the release stated.

Talking about the expansion plans, Escorts Yamaha Motor chairman Anil Nanda said: This joint venture is a partnership for leadership and the company plans to bring out two to three models every year to attain a higher market share.

A part of the investment earmarked for the expansion will go into upgrading the emission system of its present vehicles apart from the four-stroke technology which will meet the year 2000 emission norms, he said.

Escorts Yamaha Motor is also working towards reducing the overall cost of the motorcycles and the company has spent Rs 10 crore in the last two years on R&D to keep pace with the modernisation plan.