New Delhi: Motorcycle maker India Yamaha Motor plans to set up its third plant in the country, for which it has started scouting for land in Karnataka and Tamil Nadu.
The company, which plans to invest Rs 800 crore in the next two years, on capacity enhancement, said it expects to sell around 10 lakh units by 2014.
"Setting up a third plant is under consideration. We are already looking for land in Karnataka and Tamil Nadu," India Yamaha Motor Hiroyuki Suzuki said on the sidelines of the 11th Auto Expo.
He said the investment for the new plant is yet to finalise and would depend on the capacity of the facility. The firm plans to start operation of the new plant by 2014 when the company's sales in India are expected to go up to 10 lakh units from 3.3 lakh unit in 2011. At present, Yamaha has two plants each in Uttar Pradesh and Haryana.
The company had produced 5.2 lakh units in 2011 out of which 1.9 lakh units are exported. In the current year, the company hopes to clock 4.5 lakh
unit sales and 6.5 lakh units next year in India.
Showcasing a new scooter prototype model here, the company also announced its plan to enter into the Indian scooter segment by the second half of this year.
Through scooters, the company plans to target college going girls.
"With the launch of our scooter model in the second half of this year, we would be present across all growing two-wheeler segment," Suzuki said.
He said scooters are expected to contribute 30 per cent of the domestic sales by 2014.