Yamaha’s Chennai plant hits million unit production milestone

Today is a red-letter day for India Yamaha Motor (IYM). The Japanese two-wheeler manufacturer’s Chennai plant has rolled out its one-millionth unit – a Fascino scooter. The other scooter and motorcycle models, which contributed to the production landmark include the Ray Z, Ray ZR and Alfa scooters, and the Saluto and Saluto RX motorcycles.

Of the one million units made in Chennai, 850,000 units have been manufactured for the domestic market and the rest for exports. The Fascino, with 370,000 units, is the most produced made-in-Chennai product for Yamaha. According to IYM, the production percentage ratio of scooter and motorcycle production is 7:3 at present. The models with the highest export numbers were the FZ series, Ray ZR and Fascino.  

Yamaha began operations at the Chennai plant in March 2015 with an initial capacity of 450,000 units per annum. Two years later, it expanded capacity to 600,000 units and by 2019 it is targeting 900,000 units per annum, mainly to cater to demand for its products in India. By 2019, IYM’s cumulative production capacity across both its Chennai and Surajpur plants will reach 1.6 million units per annum.

Speaking in Chennai today, Riuji Kawashima, deputy managing director, India Yamaha Motor, said:  “This is a remarkable achievement by Yamaha. The production of one million units in two years showcases the increasing popularity of our brand among Indian customers. The milestone will serve as a major boost for business development as well as future expansion plans in India. We will continue to enhance the production facilities and contribute to the requirements of the Indian two-wheeler market.”

Mukesh Kumar, VP, India Yamaha Motor, added, “This major milestone would have not been possible without the hard work and diligent efforts of our entire team from production, manufacturing, purchase, R&D and all other departments as well as the suppliers. In the first year ( 2015), we produced 229,000 units, in 2016 we produced 417,000 units and this year till date we have produced 354,000 units. We are proud to contribute in the world’s No. 1 two-wheeler market. I am confident with this passion we will continue to reach new heights in future as well.”

Thus far, Yamaha has invested Rs 1,300 crore in the Chennai factory and plans to invest more than Rs 200 crore by 2018. The Chennai plant is the first vendor park in the Yamaha Motor Group which has invested Rs 760 crore till date, employing more than 1,900 people. The facility has helped bring together the production operations of main external parts suppliers, thus enabling complete synchronisation of external supplier parts production as well. This system helps reduce losses in the areas of production management and distribution to extremely low levels in the overall engineering and manufacturing process, and thus making the production base a highly efficient and profitable plant.