Tamil Nadu is fast emerging as an attractive location for vehicle manufacturers. There are already several companies such as Nissan, BMW, Hyundai, Ford, Daimler, TVS and Enfield who have set up their plants in this south Indian state. Now it is the turn of Japanese two wheeler manufacturer Yamaha to set its eyes on Tamil Nadu.
Yamaha is planning to set up its third manufacturing plant in India and had earlier said it was looking at locations in Karnataka and Tamil Nadu. Unnamed government officials have stated that Yamaha has already identified the location for its third plant in Tamil Nadu.
Reports say Yamaha might sign an MoU with the Tamil Nadu government in April or May. Yamaha has not made any official statement in this regard.
Yamaha India has plans to increase production as well as diversify its product base. It has already unveiled new scooters that will be launched in the country soon. The third plant will require huge investments. It had earlier said it would invest as much as Rs.800 crores to increase production capacity in the next two years.
Yamaha had also said it wants its third plant to be fully operational by 2014 where it expects its sales to reach 10 lakh units per year. Yamaha will depend greatly on its soon to be launched range of scooters to boost its sales. Yamaha had sold about 3.3 lakh two wheelers last year.
Yamaha's investment in Tamil Nadu has been subtly confirmed by finance minister Panneer Selvam who said the government had received investment proposals from Eicher Motors and Yamaha along with other companies. Eicher is building the second manufacturing plant for its motorcycle brand Royal Enfield.
Yamaha currently has two plants, one in Surajpur in Uttar Pradesh and the second plant is in Faridabad in Haryana. The third plant needs to be in south India to cater to local demand.