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Yamaha India may need additional capacity in 2-3 years

Motofumi Shitara, CEO, Yamaha Motor Co Ltd, and Hajime Aota (left), Chairman, Yamaha Motor India Group, at the launch of Yamaha YZF R2, in Chennai | Photo Credit: Bijoy Ghosh Yamaha Motor India is expected to require additional manufacturing capacity in the next two to three years. The company was examining ways to optimise and […]

By deepak · August 27, 2026 · 3 min read

Motofumi Shitara, CEO, Yamaha Motor Co Ltd, and Hajime Aota (left), Chairman, Yamaha Motor India Group, at the launch of Yamaha YZF R2, in Chennai
| Photo Credit:
Bijoy Ghosh

Yamaha Motor India is expected to require additional manufacturing capacity in the next two to three years.

The company was examining ways to optimise and expand capacity at its existing facilities before committing to a new plant or location, Hajime Aota, Chairman, Yamaha Motor India Group, told newspersons on Thursday.

“Currently, we have a capability of almost 1.5 million vehicles in the two plants,” Aota said, adding that he expected the capacity to be fulfilled within two to three years. The company would then have to begin work on expanding its plants, he said. Aota was speaking on the sidelines of the launch of the YZF-R2 in India.

The Japanese auto major has plants in Surajpur (UP) and Chennai. Overall, it has made a cumulative investment of more than ₹3,800 crore in India, including ₹2,000 crore in R&D and manufacturing in Chennai, in the last 10 years.

Aota said the company completed a second engine-manufacturing line at its Chennai facility this year and has additional space that could be used to increase capacity. The company could potentially raise capacity at the existing facilities through operating expenditure, he said, without disclosing the quantum.

Yamaha’s capacity plans will also be shaped by its growing role as a global manufacturer and exporter. Aota said India currently accounts for a 70:30 mix of domestic sales and exports, with the company looking to increase the contribution of exports while retaining India as its primary market.

Indonesia and India as Yamaha’s two major “engines”, he said, adding that India is expected to be among the company’s largest and highest growth markets. Yamaha India is still catching up with Yamaha Indonesia in manufacturing quality and technical optimisation, he said.

On sales, Aota said the company is targeting more than 1.1 million units across its products during the current calendar year, including exports. That’s a 10 per cent growth over previous year.

In the first half of 2026, the company sold more than 4 lakh units, registering 41 per cent growth year-on-year, outpacing the domestic two-wheeler industry, said Ravinder Singh, Senior V-P — Sales, Yamaha India. The growth was driven by premium vehicles that saw a 49 per cent increase in sales, he added.

The launch of YZF-R2, a 200cc sports bike, strengthens the company’s R-series portfolio in the country. Priced starting at ₹2.3 lakh (ex-showroom, Delhi), the YZF-R2 is Yamaha’s first offering in the highly competitive 200cc segment.

Powered by a newly developed engine made and engineered in Japan with seamless collaboration with its Indian counterparts, the YZF-R2 combines responsive performance, confidence-inspiring handling, and Yamaha’s race-bred engineering, said a company release.

India’s premium motorcycle market continues to evolve, fuelled by rising aspirations, evolving lifestyles, and a growing preference for premium mobility solutions. The 200cc segment has emerged as one of the fastest-growing categories, attracting riders who are looking to step up to higher levels of performance and ownership experience. This shift presents a significant opportunity for Yamaha to strengthen its overall motorcycle business and further expand its presence in one of the country’s most promising market segments, the company said.

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Source: Read the original article on www.thehindubusinessline.com