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Yamaha India plans expansion amid near full capacity plants

Yamaha Motor India is preparing to expand as its current factories approach full utilisation, while expressing cautious outlook on electric two-wheelers due to profitability and battery supply chain challenges.

Yamaha India plans expansion amid near full capacity plants
AI Generated | MinuteBrief Team

Yamaha Motor India is planning to expand its manufacturing operations as its current facilities near full capacity. The company’s plants in Kancheepuram, Tamil Nadu, and Surajpur, Uttar Pradesh, have a combined annual capacity of nearly 1.5 million vehicles and are expected to be fully utilised within the next two to three years. With rising demand, Yamaha is engaging with the government to explore options to optimise and expand production. However, it has not yet decided whether to expand existing plants or build a new facility.

India remains a key growth market for Yamaha globally, alongside Indonesia. This potential expansion aims to strengthen Yamaha’s position in the traditional two-wheeler market and ensure sufficient capacity to meet future demand. Meanwhile, Yamaha is cautious about the electric two-wheeler segment in India due to concerns over profitability and battery supply chain challenges. These factors are limiting a more aggressive push into electric mobility. Yamaha continues to monitor this market carefully and is balancing capacity growth in conventional two-wheelers with a measured approach to electrification as market conditions evolve.

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