With an Eye Set on Growth, Yamaha Inaugurates Third Plant, in Chennai

Yamaha India kick-started its expansion plans in the country with the launch of the new fuel injected version 2.0 FZ siblings followed by the launch of the Fascino and Saluto. With increased sales volumes it was only a matter of time they announced a new production facility, their third in India. With two plants currently operational at Surajpur (Greater Noida) and Faridabad the new plant gets a southern location.

Located at Vallam Vadagal in Kanchipuram district near Chennai, this new plant will initially have a capacity of 4.5 lakh units which can be expanded in the future based on the demand. The plant was inaugurated during the opening ceremony of the Global Investors Meet 2015 in the presence of the Chief Minister of Tamil Nadu, Ms J Jayalalithaa and Mr Hiroaki Fujita, Chairman, India Yamaha Motor Pvt Ltd.

Yamaha Chennai Plant-1

Here are some quick pointers about Yamaha’s new Chennai factory.

  • Yamaha will be investing Rs 1,500 crores in phases till 2018 which will help in ramping up the total capacity to 1.8 million units per annum. The combined capacity of all the three plant by 2018 would be 2.5 million units.
  • The Chennai plant will be manufacturing the Saluto and their entire range of scooters which includes the Fascino, Alpha, Ray & Ray Z.


  • The plant currently employees more than 2,000 people. By 2018 this would be increased to 3,900 employees of which 40 per cent will be women.
  • This would be the first plant in the Yamaha Motor group to have a vendor park in its vicinity. The complete plant is spread over an area of 177 acres of which the manufacturing facility covers 109 acres while the remaining 68 acres is for vendor partners. The Vendor Park has 9 vendors who plan to invest Rs 1,000 crores by 2018.

CHENNAI, APRIL 18: Yamaha Motor holds factory opening ceremony of the company's third Indian factory site at Chennai. (Photo by Ayush Ranka via Getty Images for Yamaha Motor Co., Lyd.)

  • Designed as an energy recycling factory it incorporates state of the art infrastructure and advanced technologies for Zero-water discharge and recycle/reuse of waste water and maximum use of sunlight. The building is compatible to solar power system installation. All common utilities are located in the centre to minimize distribution loss & centralized management.