Japanese two-wheeler maker Yamaha Motor India is scaling up its Chennai manufacturing base, converting the Vallam Vadagal facility into a key global production and export hub for both ICE motorcycles and upcoming electric vehicles.
The company has proposed a fresh investment of Rs 58 crore at the plant, building on last year’s Rs 180-crore expansion. Established in 2015 during the Tamil Nadu Global Investors Meet, the facility remains Yamaha’s largest manufacturing unit in India.
With annual capacity of 900,000 units, Chennai contributes nearly 60% of Yamaha India’s total 1.5-million-unit capacity. The plant employs about 7,000 people, manufactures over 350,000 motorcycles yearly for domestic sales, and exports more than 250,000 units annually. It marked a key milestone in June 2025 by producing its five-millionth vehicle. Yamaha aims to cross 1.1 million total units, including exports, in 2026.
Hajime Aota, Chairman of Yamaha Motor India Group, said exports were always central to Chennai’s mission but will now take on greater importance, citing the region’s strong port connectivity and access to shipping routes as key advantages for overseas trade.
As India’s domestic two-wheeler growth slows and the industry shifts toward electrification, Yamaha is positioning Chennai-based export manufacturing as a long-term strategic priority. Aota emphasized building global recognition for Indian-made Yamaha products around quality and reliability, not just volume.
The company is also reviewing production allocation between its two Indian plants and plans to boost component localisation to strengthen cost competitiveness. Despite holding just over 5% of India’s two-wheeler market, Yamaha sees strong potential in southern India, which drives nearly half its domestic sales.
