Yamaha India eyes capacity expansion as plants near full utilisation

Yamaha Motor India has begun evaluating additional manufacturing capacity as it expects its existing annual output limit to be fully utilised within the next two to three years. The Japanese two-wheeler maker operates plants in Surajpur, Uttar Pradesh, and Kanchipuram, Tamil Nadu, with a combined annual capacity of 1.5 million (15 lakh) units, and is weighing whether to expand within its current footprint or invest in a new location.

1. Yamaha India’s 1.5 million unit annual capacity expected to be fully utilised within 2-3 years
2. Domestic sales up 41 percent to 4.1 lakh units in H1 2026
3. Annual sales target of 50,000 units set for the newly launched YZF-R2

Yamaha India capacity expansion: Key details

New plant requires 3-4 years of lead time; expansion within existing sites also being considered

Hajime Aota, chairman of the Yamaha Motor India Group, said the company still has space to expand at its existing facilities, reducing the immediate pressure to acquire new land. The decision on expansion – whether at Surajpur, Kanchipuram or elsewhere – will depend on manufacturing processes, supplier allocation and longer-term domestic and export requirements. “At this moment, we have capability, and we have space,” Aota said, while noting that planning for a new greenfield facility typically requires a lead time of three to four years.

Yamaha expects its total volumes (including exports) to exceed 1.1 million units in 2026, with domestic sales up 41 percent to 4.1 lakh units in the first half of the year. The company expects volumes in the second half to be higher, supported by festive demand and new product launches. On the YZF-R2, which debuted yesterday at Rs 2.30 lakh, Yamaha has set an annual domestic sales target of 50,000 units.

Aota described India and Indonesia as Yamaha’s two biggest global growth engines, with India offering the stronger long-term growth opportunity. However, he noted that India must continue improving manufacturing productivity and technical capabilities to narrow the gap with Indonesia and expand its role in Yamaha’s global production network. The company employs approximately 10,000 people across its Indian operations and has invested over Rs 2,000 crore in research, development and manufacturing in India over the past eight to ten years. The quantum of investment required for the next phase of expansion has not been disclosed.