Japanese two-wheeler manufacturer Yamaha Motor India is strengthening its manufacturing presence in Chennai by transforming its Vallam Vadagal facility into a major global production and export hub for both internal combustion engine (ICE) motorcycles and future electric vehicles (EVs).
The company has proposed an additional investment of Rs 58 crore at the Chennai plant, following the completion of a Rs 180-crore expansion programme last year. The facility, inaugurated during the Tamil Nadu Global Investors Meet in September 2015, is Yamaha’s largest manufacturing plant in India.
With an annual production capacity of 900,000 units, the Chennai factory accounts for nearly 60% of Yamaha India’s total manufacturing capacity of 1.5 million units. The plant employs around 7,000 people, produces more than 350,000 motorcycles annually for the domestic market, and exports over 250,000 units every year. In June 2025, the facility achieved a major milestone by rolling out its five-millionth vehicle.
Yamaha is targeting total sales of more than 1.1 million units, including exports, in 2026, reflecting its growing focus on India as a global manufacturing base.
Speaking on the company’s long-term strategy, Hajime Aota, Chairman of Yamaha Motor India Group, said exports have always been part of the vision for the Chennai facility but will now play an even more significant role.
“When the Chennai plant was established, exports were already part of the long-term vision. More than a decade later, I believe we need to place even greater emphasis on export growth,” Aota said.
He noted that Chennai’s strategic location offers direct access to ports and international shipping routes, providing a significant logistical advantage for serving overseas markets.
“Southern India provides easier access to ports and sea routes, which is a significant advantage when serving overseas markets,” he added.
As domestic market growth gradually moderates and the industry transitions towards electrification, Yamaha expects export-oriented manufacturing from Chennai to become a key pillar of its long-term business strategy.
“My ambition is not just to export larger volumes from India, but to make Indian-made Yamaha products globally recognised for quality, competitiveness and reliability,” Aota said.
The company is also evaluating the allocation of production between its two Indian manufacturing facilities, with the possibility of increasing motorcycle production at the Chennai plant.
Alongside capacity expansion, Yamaha plans to increase localisation of components and further strengthen its domestic supplier ecosystem to improve cost competitiveness for global markets. The strategy aims to position India not only as a major consumer market but also as a competitive manufacturing base for international demand.
Although Yamaha currently holds just over 5% of India’s two-wheeler market, the company sees significant growth opportunities, particularly in southern India, which accounts for nearly 30% of the country’s two-wheeler demand while contributing almost half of Yamaha India’s sales.
The Chennai region has also emerged as one of India’s leading automotive and electric vehicle manufacturing clusters, supported by a strong supplier ecosystem. Yamaha believes this ecosystem will play a vital role in supporting both its export expansion and future electric mobility initiatives.
