India Yamaha Motor has started work on expanding two-wheeler output by 50 per cent with the project to be completed by March 2018.

The Japanese two-wheeler manufacturer’s factory at Vallam-Vadagal now rolls out 2,100 scooters and motorcycles daily or about six lakh units a year.

Work on an additional line is on which will be completed by March 2018 at an investment of about ₹200 crore.

In 2019, its output may be about 9 lakh units annually. Total investment into the factory, which was started two years back, will touch ₹1,500 crore, according to Mukesh Kumar, Vice-President, Manufacturing Group - South.

Riuji Kawashima, Deputy Managing Director, India Yamaha, said the expansion will generate additional jobs. A total of 4,000 workers will be employed due to the expansion against the present number of over 3,400.

The facility started in March 2015 with a production capacity of 4.5 lakh units a year is now being doubled.

The company officials were addressing media persons at the two-wheeler factory, about 25 km to the west of Chennai, after the roll out of one millionth vehicle from the assembling unit.

The factory complex, includes a cluster of nine vendors and one service provider which makes for an efficient supply chain. The vendors have invested over ₹760 crore and employ about 2,000 workers. An additional investment in line with the expansion will come in.

The vendor park makes the unit one cost-efficient as the components can be delivered to the assembling unit just in time without need for inventory build-up, he said.

Of the 10 lakh units produced so far about 8.5 lakh units have been for the domestic market and 1.5 lakh for exports.

Fascino scooters have been their most successful product with 3.7 lakh units produced.

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