Yamaha to Set up New Two-Wheeler Factory Near Chennai

India Yamaha Motor Pvt. Ltd. signed a Memorandum of Understanding with the government of Tamil Nadu on May 14, 2012 approving the construction and operation of a new two-wheeler factory in the state. The new facility will join the currently operating factories of India Yamaha Motor Pvt. Ltd. (IYM) at Surajpur (UP) and Faridabad (Haryana) to meet the rising demand for two-wheelers in India.

The new factory is to be constructed on a lot of approx. 440,000 m2 in an industrial park in Vallam Vadagal on the outskirts of the city of Chennai, Tamil Nadu. Plans call for the construction of a factory facility with a total floor space of approx. 114,000 m2 and is scheduled to begin in September 2012, with completion and start of operations scheduled for January 2014.

According to plans, the new factory will employ 1,800 people and have an annual two-wheeler production rate of 400,000 units at the start of operations. Production capacity will then be increased in stages to a level of 1.8 million units annually by 2018, at which time employment is expected to reach 6,500 people.

The forecast for the total investment in the new factory and facilities is approx. Rs 1,500 crores over the next five years.

India Yamaha Motor “Chennai Factory” Overview:

Location: Vallam-Vadagal Industrial Park, Tamil Nadu, India

Investment Value: Approx. Rupees 1,500 Crores

Site Area: 440,000 m2

Factory Floor Space: 114,000 m2

Start of Operations: January 2014

Business: Manufacture of Two-Wheelers

Production Capability: 400,000 units (at start of operations in Jan. 2014)/ 1.8 Million units (2018 Plan)

Employees: Approx. 1,800 (at start of operations in Jan. 2014) / Approx. 6,500 (2018 Plan)