Yamaha Sets 25% Export Growth Target as Chennai Facility Gears Up for Global Role

Yamaha Motor India Pvt Ltd is set to elevate its Chennai manufacturing facility into a pivotal global export hub, targeting advanced markets such as the United States, Europe, and Japan, while aiming for a robust 25% growth in exports for 2025. The strategic pivot underscores the company's confidence in India's manufacturing prowess amid rising global demand for premium two-wheelers.

In fiscal year 2024-25, Yamaha achieved a 33.4% surge in exports, dispatching 2,95,728 units from India compared to 2,21,736 units the previous year, reflecting strong post-pandemic recovery and supply chain resilience. This momentum positions Chennai as the cornerstone of Yamaha's international expansion, with ongoing investments to align the plant with stringent global quality benchmarks.

The Chennai plant, operational since 2016, currently produces a diverse lineup of models tailored for export, including the FZ V2, V3, and V4 (all 149 cc), Crux (106 cc), Saluto (110 cc), Aerox 155 (155 cc), Ray ZR 125 Fi Hybrid (125 cc), and Fascino 125 Fi Hybrid (125 cc). These vehicles cater to varied segments from commuter bikes to premium scooters, emphasizing fuel efficiency and hybrid technology. Yamaha supplements exports from its Surajpur facility in Uttar Pradesh, but Chennai's proximity to major ports and skilled workforce makes it ideal for scaling up shipments to discerning markets. Exports to Europe commenced last year and have yielded promising results, prompting further enhancements in production capacity and automation at the Tamil Nadu site.

Senior Executive Officer of Yamaha Motor Co Ltd and Chairman of Yamaha Motor India Group, Itaru Otani, highlighted the ambitious trajectory during a recent media interaction, stating, "We are trying to achieve a big growth, like by 25 percent this year on exports." He elaborated on the hub strategy: "The Chennai factory of Yamaha will be the export hub for the global markets, especially to advanced countries like the US, Europe, and then Japan." Otani's vision aligns with Yamaha's broader globalization efforts, leveraging India's cost advantages and engineering talent to counterbalance domestic market saturation, where two-wheeler sales have stabilized post the 2023-24 boom.

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Currently shipping to 55 countries across Asia, Africa, Latin America, and now Europe, Yamaha is scouting additional frontiers with untapped potential, as Otani noted: "We are planning, including the advanced countries," while prioritizing regions with aligned product demand. This export focus not only diversifies revenue streams—accounting for nearly 10% of Yamaha's India production—but also bolsters the 'Make in India' initiative, creating over 2,000 direct jobs at Chennai alone. As global trade dynamics evolve with stricter emission norms, Yamaha's hybrid offerings from Chennai could carve a niche, potentially driving sustained double-digit growth and reinforcing India's role in the two-wheeler value chain.

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