Setting up a new two-wheeler factory in Tamil Nadu

India Yamaha Motor (IYM) Pvt. Ltd. has signed a Memorandum of Understanding with the government of Tamil Nadu approving the construction and operation of a new two-wheeler factory in the state. The new facility will join the company’s Surajpur (UP) and Faridabad (Haryana) factories to meet the rising demand for two-wheelers in India, where the new factory could also produce scooters, like the Ray which was displayed during the 2012 Auto Expo.

The new factory is to be constructed on a lot of approx. 440,000 sq.m. in an industrial park in Vallam Vadagal on the outskirts of the city of Chennai, Tamil Nadu. Plans call for the construction of a factory facility with a total floor space of approx. 114,000 m2 and is scheduled to begin in September 2012, with completion and start of operations scheduled for January 2014. The company aim to employ 1,800 people and have an annual two-wheeler production rate of 400,000 units at the start of operations. Production capacity will then be increased in stages to a level of 1.8 million units annually by 2018, at which time employment is expected to reach 6,500 people. The forecast for the total investment in the new factory and facilities is approx. Rs 1,500 crores over the next five years.