Yamaha zeroes in on Tamil Nadu for third plant

Japanese two-wheeler giant Yamaha has finalised a location in Tamil Nadu to set up its third facility in India to expand its operations. Yamaha will be the third two-wheeler maker in the

According to sources in the know of the development, the company has shortlisted Tamil Nadu out of three states, including Karnataka and Maharashtra, and will sign the Memorandum of Understanding (MoU) by May this year.

“Yamaha will soon sign the MoU with the state government. It may happen in April or May,” a senior government official said on the condition of anonymity. When contacted, a spokesperson of Yamaha declined to comment on the development.

In January this year, India Yamaha Motor said it was scouting for land in Karnataka and Tamil Nadu for its proposed third plant in India.

The company, which plans to invest Rs 800 crore in the next two years on capacity enhancement, had said it planned to start operations of the new plant by 2014 when the company’s sales in India are expected to go up to 10 lakh units annually from 3.3 lakh unit in 2011.

India Yamaha had produced 5.2 lakh units in 2011, out of which 1.9 lakh units were exported.

The Indian subsidiary of Yamaha Motor Co currently has two manufacturing units at Surajpur in Uttar Pradesh and Faridabad in Haryana and produces motorcycles for both domestic and export markets.

In the current year, the company hopes to clock sales of 4.5 lakh units and 6.5 lakh units next year in India. The company is also planning to enter into the Indian scooter segment by the second half of this year. Through scooters, it plans to target college going girls.

Tamil Nadu is currently home for various auto makers like Nissan, BMW, Hyundai, Ford, Daimler, TVS and Enfield.