Yamaha Invests Rs 58 Crore to Turn Vallam Vadagal Plant Into Global EV and Export Hub

Yamaha is repositioning its manufacturing facility in Vallam Vadagal, near Chennai, into a global production and export hub for both internal combustion engine and electric vehicles. The company has proposed an additional investment of Rs 58 crore to support this transition, coming just one year after completing a Rs 180-crore expansion programme at the site.

The Vallam Vadagal factory, which was inaugurated in September 2015 by the late former Tamil Nadu Chief Minister J Jayalalithaa, has become the backbone of Yamaha’s Indian operations. In June 2025, the facility celebrated a major milestone by rolling out its five-millionth vehicle.

Currently, the plant employs approximately 7,000 people and has an annual production capacity of 900,000 units, which accounts for about 60 percent of Yamaha India's total capacity. The facility builds more than 350,000 motorcycles annually for the domestic market and exports over 250,000 units each year. With this new alignment, Yamaha is targeting total sales of more than 1.1 million units, including exports, by 2026.

According to Hajime Aota, chairman of Yamaha Motor India Group, the geographic location of the plant offers a natural logistical advantage. Southern India provides easier access to ports and sea routes, making it highly suitable for serving overseas markets.

Aota indicated that as domestic market growth moderates and electrification changes industry dynamics, export-oriented manufacturing from Chennai will become a key pillar of Yamaha India's long-term growth. The company is also reviewing its production distribution, with the possibility of further increasing motorcycle production at the Chennai facility.

While Yamaha currently holds a domestic market share of just over 5 percent, southern India is a critical region for the brand. The area accounts for nearly 30 percent of the country’s overall two-wheeler demand and contributes roughly half of Yamaha India's total sales.