Yamaha is considering setting up its third plant in India. The company eyes the western region of the country as the ideal location for this plant.
It has a unit in Surajpur, Uttar Pradesh, with a capacity of one million two wheelers annually. The second plant in Chennai will be inaugurated in a couple of months. In this plant, the capacity will be increased in phases to 1.8 million units by 2018.
With the third plant, the total capacity will be over four million units by 2020. Gujarat might be the preferred location for Yamaha’s new third plant. The state is getting ready to play host to top brands such as Ford, Suzuki, Hero MotoCorp and Honda (two-wheelers and cars).
Yamaha has identified India as a crucial sourcing hub for its global operations where the business is expected to rise to Rs 360 crore from Rs 60 crore by end 2016.