Yamaha Motor Co. is joining its Japanese rivals in boosting its motorcycle capacity in India, betting demand from Indians seeking personal transportation will continue.
Yamaha's local unit will invest 8 billion rupees (¥11.7 billion) to triple its capacity by March 2013, the company said in a statement Thursday. Suzuki Motor Corp. will spend 1 billion rupees (¥1.5 billion) to produce more motorcyles, Atul Gupta, vice president for sales and marketing at the local unit, said in New Delhi.
Honda Motor Co., which reiterated a plan to almost double its two-wheeler capacity in India by 2013, and other Japanese motorcycle makers have unveiled new models at the New Delhi auto show, counting on economic growth to generate demand in the country. Prime Minister Manmohan Singh said last month India will return to 8.5 to 9 percent growth after the global economy stabilizes.