Yamaha to invest $418 million in India plants to expand capacity

Yamaha Motor Co. will invest 22.5 billion rupees ($418 million) in India over the next five years to raise its two-wheeler production capacity by almost fivefold to 2.8 million units.

The Shizuoka, Japan-based company plans to set up a factory near the southern Indian city of Chennai at a cost of 15 billion rupees, Roy Kurian, Yamaha’s national business head, said at press conference today. The capacity of the plant will increase to 1.8 million vehicles by 2018 from 400,000 by 2014, he said.

“Indian two-wheeler buyers are upgrading to powerful and stylish bikes,” Kurian said. “These investments will help us to meet this growing demand,” he said.

The motorcycle maker will also invest 7.5 billion rupees to expand its facilities in the northern states of Uttar Pradesh and Haryana, Kurian said. The Indian unit will start selling scooters in the second half of the year, he said.