Yamaha to Invest ₹180 Crore to Expand Two-Wheeler Production Capacity at Tamil Nadu Factory

India Yamaha Motor (IYM) has announced plans to expand its two-wheeler production capacity at its factory near Chennai, Tamil Nadu. The company, a subsidiary of the Japan-based Yamaha Motor Company, has submitted a pre-feasibility report seeking environmental clearance for the project, which involves an investment of ₹180 crore. This expansion is expected to create over 400 new jobs.

The Vallam Vadagal plant, which began operations in 2015 and spans 111 acres, will see its production capacity significantly increased. Yamaha plans to add facilities that will enable the production of an additional 35,000 motorcycles and 45,000 scooters each month. This will boost the total plant size from 1.5 lakh square meters to 1.7 lakh square meters. Yamaha has already invested ₹1,789 crore in this facility, and the total investment will rise to ₹1,969 crore with the expansion.

Yamaha’s decision comes in response to rising demand in India's two-wheeler market, which has seen growth of 25-30% in recent years. The southern region, where Yamaha holds over 5% market share, accounts for 30% of the country’s two-wheeler demand and 50% of Yamaha's total sales. Chennai's proximity to a major seaport further solidifies its strategic importance for the company.

Currently, IYM operates two advanced manufacturing plants, one in Surajpur, Uttar Pradesh, and the other in Vallam Vadagal, Tamil Nadu, with a total annual production capacity of 1.5 million motorcycles. The existing operations at the Chennai plant provide employment to 4,743 people, and the upcoming expansion is expected to generate 431 additional jobs.

HBL