Yamaha’s Chennai Factory Achieves 1 Million Production Milestone

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India Yamaha Motor (IYM) reached a major milestone of producing its one-millionth unit from the Chennai Factory. The one millionth model rolled out of the factory is the Fascino. The other scooter and motorcycle models which contributed in reaching this landmark by IYM includes Ray Z, Ray ZR, Alpha, Saluto and Saluto RX.

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Yamaha began its operations in Chennai in March 2015 with an initial capacity of 4.5 lakh units per annum. In a span of two years, it increased its capacity to 6 lakh units per annum and by 2019, it will reach at 9 lakh units per annum. The increase in production figures can largely be attributed to the increasing popularity of scooter and motorcycle brands of Yamaha in India. The total production capacity of IYM including the factories in Chennai and Surajpur by 2019 will reach 1.6 million units per annum.

Out of one million products manufactured from the Chennai Factory, 8.5 lakh units have been manufactured for the domestic market and remaining 1.5 lakh units for the export market. Fascino is the most produced product with 3.7 lakh units. The current production percentage ratio of the scooter and motorcycle production at the factory is 7:3. The models with highest export numbers were the FZ series, Ray ZR and Fascino.

Yamaha has invested 1300 crores in the Chennai Factory till date and plans to invest more than INR 200 crore by 2018. The Chennai factory is the first in the Yamaha Motor group which has a vendor park in its vicinity. The vendor park has 9 vendors which have invested INR 760 crore till date, employing more than 1900 people. The facility has supported in bringing together the production operations of main external parts suppliers, thus enabling complete synchronization 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.

IYM’s Chennai plant is an energy-recycling factory that is friendly to people and the global environment. The plant incorporates 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.

The facility is of strategic importance to Yamaha’s local and global business. Apart from catering to the domestic market, the plant is aimed at functioning as the manufacturing base for predominantly African market as well as ASEAN and Latin American markets.

Speaking on the occasion, Riuji Kawashima, Deputy Managing Director, IYM, said that this is a remarkable achievement by Yamaha. The production of one million-unit in two years showcases the increasing popularity of their brand among the Indian customers. The important milestone will serve as a major boost for business development as well as future expansion plans in India. They will continue to enhance the production facilities and contribute to the requirements of the Indian two wheeler market.

Mukesh Kumar, Vice President, IYM, said, “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 i.e. 2015, we produced 2.29 lakh units, the very next year in 2016 we produced 4.17 lakh units and this year till date we have produced 3.54 lakh units. We are proud to contribute in the world’s number 1 two wheeler market. I am confident with this passion we will continue to reach new heights in future as well.”

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