Yamaha to open a new plant in Chennai

Yamaha, the Japanese two wheeler manufacturer, has recently opened a top-notch research and development center in India, and now the company is all set to open a two wheeler plant in Chennai, which will be effective from 2014.Yamaha is working hard to widen its horizons. The company has signed a MOU (memorandum of understanding) with Tamil Nadu government. Now, the company is on the verge of opening a 1,500 crore plant. This plant is expected to produce 1.8 million units of Yamaha vehicles.

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As per reports, this Chennai plant may produce cost friendly bikes for Indian markets. With Yamaha presently owning a plant in Surajpur(U.P) that has a production capacity of one million units per year, this new plant will increase the company’s production capacity by a major extent. The company is presently operating from the Surajpur facility and fulfilling the demands of domestic and international markets for these bikes. The company also owns a facility that produces spare parts in Faridabad (U.P).

Yamaha’s much awaited scooter ‘Ray’ has helped the company garner the attention that was required. Yamaha is the 5th largest manufacturer of two wheelers. The company that used to focus on 110-150cc bike category is slowly shifting its focus from these bikes to other products, for example it introduced Ray, which helped them increase the sales, and presently the company sells 3.5 lakh units yearly, which includes 30,000 units of scooters. Still, with all these developments, the company enjoys a market share of only 3 percent, which is quite low. And to buck up the sales and to gather more attention, the company has announced the launch of 100-110cc bike and a 125cc powerful scooter presently for the Indian market, which the company later intends to export. To make the sales better, the company relies upon ‘Yamaha Motor India Sales’, a wing formed this year. Yamaha is targeting five lakh units of both bikes and scooters by FY 2013-14. Now it is for us to watch if the new sales and marketing department will do the needful.

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