Yamaha mulls third plant in India

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GMI

BLOOMBERG - July 07, 2005 - financialexpress.com

JULY 7: Yamaha Motor Co., the world's second-biggest motorcycle maker, plans to set up a third plant in India and increase the capacity of existing factories in the country to half a million units annually.

"India is a key market for Yamaha globally," H. Yanagi, Chief Executive Officer and Managing Director of Yamaha's India unit, said in New Delhi today, after the company unveiled its 106-CC G5 motorcycle model. "Our situation now in this market has begun to improve and we are therefore investing more."

Yamaha Motor plans to invest four billion rupees on expanding its capacity in India, which is currently at 350,000 units. The company expects to double its share of the Indian market to 10 percent by 2008.

The company plans to make India a hub for exports to Europe. It plans to introduce scooters in the country.

Local sales of Yamaha, India's fourth-biggest motorcycle maker, fell 8.1 per cent to 212,985 in the year ended March 31.

Its exports grew 19 per cent to 39,211. The company had 5.6 per cent of India's market, which is led by Hero Honda Motors Ltd.