Two-wheeler manufacturer, India Yamaha Motor, reached a major milestone of producing its one-millionth unit from the Chennai Factory recently. The one millionth model that rolled out is the stylish Fascino. The other models which contributed in reaching this landmark include the Ray Z, Ray ZR, Alpha, Saluto and Saluto RX.
Yamaha began its operation in Chennai in March 2015 with an initial capacity of 4.5 lacs unit per annum. In a short span of two years it increased its capacity to 6 lacs unit per annum and by 2019 it will reach at 9 lacs unit per annum. According to the company, the increase in production figures can largely be attributed to the increasing popularity of Yamaha brands in India. The total production capacity the factories in Chennai and Surajpur by 2019 will reach at 1.6 million units per annum.
Speaking on the occasion, Riuji Kawashima, deputy managing director, IYM, said, “This is a remarkable achievement. The production of one million-unit in two years showcases the increasing popularity of our 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. We will continue to enhance the production facilities and contribute to the requirements of the Indian two wheeler market.”
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 production percentage ratio of the scooter and motorcycle production at the factory is 7:3 right now. The models with highest export numbers were the FZ series, Ray ZR and Fascino.
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 lacs unit, the very next year in 2016 we produced 4.17 lacs unit and this year till date we have produced 3.54 lakh units. We are proud to contribute in the world’s number one two wheeler market. I am confident with this passion we will continue to reach new heights in future as well.”
Yamaha has so far invested Rs 1300 crores in the Chennai Factory and plans to invest more than Rs. 200 crores by 2018. Chennai Factory is the first in the group which has a “Vendor Park” in its nearby vicinity. The vendor park has nine vendors who have invested Rs 760 crores 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.
The Chennai plant is an energy-recycling factory that is friendly to people and the global environment. The plant incorporates state-of-the-art infrastructure and advanced technologies for zero-water discharge and recycle 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 & centralized management.
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.
Yamaha made its initial foray into India in 1985 as a joint-venture. In August 2001, it became a 100 per cent subsidiary of Yamaha Motor, Japan. In 2008, Mitsui and company entered into an agreement to become a joint-investor in India Yamaha Motor Private Limited (IYM). IYM’s manufacturing facilities comprises three state-of-the-art plants at Faridabad (Haryana), Surajpur (Uttar Pradesh) and Chennai (Tamil Nadu). The infrastructure at these plants supports production of motorcycles and parts for the domestic as well as overseas markets.