Yamaha targets 100% capacity utilisation, double volumes by CY25
Yamaha Motor India, which has an annual installed production capacity of 1.5 million units, is planning to make use of the entire capacity by CY25 from the current level of 55%, according to a senior company official. The two-wheeler manufacturer is also targeting to double its domestic volumes in the next three years.
At present, the company has manufacturing facilities at Surajpur in Greater Noida, Uttar Pradesh, and Chennai, Tamil Nadu. The annual installed production capacity is 0.6 million units for the Surajpur plant and 0.9 million units for the Chennai plant. The cumulative capacity utilisation for the two facilities currently stands at 55%.
Among the models manufactured at the Surajpur plant are the R15 series, MT-15, FZ-15 and FZ-X, which are all motorcycles. The scooters like RayZR and Fascino are produced at the Chennai plant.
“We are only utilising 55% of our total annual installed capacity at present. By CY25, our target is to use the entire capacity,” Eishin Chihana, chairman, Yamaha Motor India, told FE.
In CY21, the company had achieved overall volumes of 790,000 units. It had sold 522,000 units in the domestic market and exported 268,000 units. Its top export models include FZ-15, R15 and MT-15, and they are shipped to Bangladesh, South America and Asean countries, among others.
“If we talk about of the domestic business, we are aiming to double our volumes by CY25 compared to this year,” Chihana added.
However, the company is expecting its domestic volumes in CY22 to be close to the CY21 figures owing to headwinds in the two-wheeler segment.
Asked about Yamaha’s electrification plans, Chihana said: “I am pushing the company to develop an electric scooter as soon as possible. Discussions are also going on with Yamaha Japan.”
While he confirmed that Yamaha will launch a new electric scooter in India in the mid-term (3-5 years), the company could also introduce an electric model already available in markets like Vietnam or Taiwan, but only after making sure it is suitable for India.
“We need to be careful about safety, quality and durability in India, especially in the wake of the recent fire incidents involving India-made electric scooters. For a reliable OEM like Yamaha, introducing a top-quality product is paramount,” Chihana said.
Yamaha has launched 5-6 fresh models, including the new R15 series, MT-15, FZ-X and Aerox (maxi sports scooter), over the last two years. The company will focus on bringing the upgraded versions of these with minor changes in CY23. Besides, it will launch one more completely new model soon. Though Chihana did not share any details regarding the new model, he said that the company is “carefully watching the semiconductor situation”.
Though the semiconductor shortage started impacting Yamaha’s operations globally from May last year, the Indian operations started getting affected from the last quarter of CY21.
“Arranging the necessary quantity of semiconductors has been tough this year. Since we have a premium strategy, our two-wheelers have more digital features and electronic devices, which require a lot of semiconductors,” Chihana said.