India Yamaha Motors has signed an MoU with the state government of Tamil Nadu for setting up a 1.8 million units manufacturing facility at Vallam Vadkal near Sriperumpudur in Chennai. The project will entail an investment of Rs. 15000 million and will go operational by 2015. The Chennai facility will also have a vendor park in its nearby vicinity, thus enabling complete synchronization of external supplier parts production as well to reduce losses in the areas of production management and distribution. The company expects to achieve a market share of 10% by 2016.
Yamaha Motors India is planning to set up a greenfield manufacturing facility in South India, preferably Karnataka or Tamil Nadu. The entailed investment is slated around Rs. 8000 million over a period of three years. It will expand its current manufacturing capacity from 0.65 million vehicles to 1.0 million vehicles by 2014. The company aims to strengthen 150 cc, FZ and SZ series and the scooter segment.
Triumph Motorcycles to set up a manufacturing facility in Narsapur in Karnataka. The company had acquired around 40 acres of land. It will manufacture Bonneville, Street Triple and Daytona besides 4 other models. Initially, the company will import CKD (Complete knocked down) kits to launch brands by 2012. The new facility will go operational by early 2013. The company is also appointing 12 outlets for sales and service.