Japanese two-wheeler maker, Yamaha, has been delaying for a year, the setting up of a new plant in Chennai, Tamil Nadu, due to various issues.

The project, estimated to cost Rs 1,500 crore, faces delay due to economic slowdown. The company, which had originally planned to start production at the unit by January 2014, has now decided to commission the plant by December 2014 or January 2015.

Recently, Yamaha commenced work at the facility, which will have a production capacity of 18 lakh units per annum, by 2018.

Yamaha's research and development arm, Yamaha Motor R&D India (YMRI), has been working on a scooter and commuter motorcycle for the Indian market, which can also be exported to other similar markets like Africa and Latin America. The company expects to launch these two products by 2016. These will be rolled out from the Chennai plant.

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