To produce the new motorcycle – Saluto 125 executive motorcycle, Yamaha India will start operations at its third facility in India from May. The company already has two plants in northern India, located in Faridabad, Haryana and Surajpur, Uttar Pradesh. The third plant has come-up in Chennai, Tamil Nadu with an investment of Rs 1500 crores. The trial runs have started at the new plant and will be fully operational soon. The new plant, when full-operational, will have a production capacity of 4.5lakh units per year and will produce the new motorcycle along with Ray and Alpha scooters. The company plans to increase the capacity of the same plant to 18lakh units by 2018.
The company aims to sell 60,000 units of the Saluto this year and is looking to increase total cumulative volumes to 5.5lakh units that were sold in last fiscal. Long term goal of the company is to retail 8lakh units this year and reach 1million units in 2016 and around 1.2 million two-wheelers by the year 2017.
Yamaha India has performed consistently in India in the premium motorcycle segment. To complement sales numbers, Yamaha India would also be expanding the dealer network from 400 to 550. Out of the new 150, 80% are expected to be in rural parts of India. At present, 45% of the two wheeler sales for the manufacturer are contributed by scooters, while motorcycle sales making up the rest. Yamaha would put more focus on scooters and intends to redistribute the share as 50:50.