India Yamaha Motor (IYM) has proposed to expand production capacity of two-wheelers at its plant near Chennai, and will invest Rs 180 crore in this capacity expansion phase. It is expected to generate employment opportunities for over 400 individuals. The automotive major has submitted a pre-feasibility report and seeks environmental clearance.

IYM operates manufacturing facilities at Surajpur in Uttar Pradesh and Vallam Vadagal near Chennai in Tamil Nadu, with a capacity to manufacture 1.5 million motorcycles annually. IYM has planned to enhance the capacity of the Vallam Vadagal operations, which covers a 111-acre site which commenced operations in 2015.

The expansion will involve constructing additional facilities to produce 35,000 motorcycles and 45,000 scooters per month. The company has already invested Rs 1,789 crore in the Vallam Vadal operations, and the total investment is expected to rise to Rs 1,969 crore with this plan. Besides, the existing manufacturing operations have created  work opportunities for about 4,743 individuals.

The southern region accounts for about 30 percent of the total two-wheeler demand and around 50 percent of the company’s total sales. Chennai, is strategi owing to its proximity to the seaport.