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India Yamaha Motor (IYM) has proposed an expansion of its two-wheeler production capacity at its factory near Chennai. The Japan-based automotive leader has submitted a pre-feasibility report outlining its expansion plans and seeking environmental clearance. The company intends to invest ₹180 crore in this capacity expansion phase, which is expected to generate job opportunities for over 400 individuals.
“In response to market demands, India Yamaha Motor aims to expand its existing unit,” as noted in the report.
IYM operates state-of-the-art manufacturing facilities at Surajpur in Uttar Pradesh and Vallam Vadagal near Chennai in Tamil Nadu, producing motorcycles for both domestic and export markets. The company has the capacity to manufacture 1.5 million motorcycles annually.
Production capacity
IYM has planned to enhance the capacity of the Vallam Vadagal operations, which covers a 111-acre site that commenced operations in 2015. The proposed expansion will involve constructing additional facilities to produce 35,000 motorcycles and 45,000 scooters per month. The company has already invested ₹1,789 crore in the Vallam Vadal operations, and the total investment is expected to rise to ₹1,969 crore with the proposed expansion.
The proposed expansion will also increase the size of the plant from 1.5 lakh square metres to 1.7 lakh square metres.
With a significant rise in demand, especially given the motorcycle and scooter segments growing at 25-30 per cent over the past few years, the company is looking to enhance its presence in this sector, where it currently holds over 5 per cent market share, it said.
The southern region is a critical market for IYM, accounting for about 30 per cent of the total two-wheeler demand and around 50 per cent of the company’s total sales. Chennai, in particular, is a strategic market due to its proximity to the seaport.
The existing manufacturing operations have created job opportunities for about 4,743 individuals, and the current expansion is expected to add around 431 new jobs.
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Published on October 22, 2024
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