Monday, May 14, 2012

Yamaha plans foray in scooter sector, to open Rs 1,500 crore two-wheeler plant in Chennai suburbs

First Yamaha scooter to be launched in Diwali
Chennai:
In a bid to target the southern India market, India Yamaha is opening a new two-wheeler factory in Vallam Vadagal on the outskirts of the city, according to the company’s top officials.

Addressing a press conference here on Monday, chief executive officer and managing director of Yamaha Horoyuki Suzuki, deputy managing director Riuji Kawashima and national business head, sales, Roy Kurian said that a memorandum of understanding was signed with the state government on Monday approving the construction of the two-wheeler factory, which will initially manufacture scooters.

Interestingly, the company will be launching its first scooter in the festival season of Diwali and eyes to have a sizeable presence in the segement.

The construction of Rs 1,500 crore factory built on 440,000 square meteres of land in an industrial park in Vallam Vadagal is scheduled to begin in September 2012 and the factory is expected to start operations on January 2014, Suzuki said.

Initially, the new factory will employ 1,800 people and have two-wheeler production rate of 400,000 units at the start of operations. “The production capacity will then be increased in stages to a level of 1.8 million units by 2018 at which time the factory is expected to employ 6,500 people,” said Kurian.

Kurian said the plant in Chennai will manufacture scooters as it is trying to target the personalized segment for girls. “Scooters are a key driver of the industry registering a growth of 30 per cent,” he added.

“We have done a study which found out that the girls expectations from scooters is high and the existing scooters fail to cater to it,” Kurian said.

“The scooter is being manufactured in the company’s north Indian plants in Surajpur in Uttar Pradesh and Faridabad in Haryana,” said Kurian. He said the two north Indian plants is targeting to manufacture one million units by 2014 besides the Chennai plant will be producing 400,000 units in 2014. “By 2018, the Chennai unit will be producing 1.8 million units besides the one million units in the north Indian plant,” he added.

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