Support of Tamil Nadu government without parallel for Yamaha’s operations

Because of the strategic location, the state is strategic for logistics of operations. This merged with the unending support of Tamil Nadu government creates for best of conditions to set up industry.


Yamaha signed an MOU with Tamil Nadu Government on 14.05.2012 for setting up a new two wheeler factory in the presence of the Hon’ble Chief Minister. The total investment they have committed is Rs.1500 Cr and employment of nearly 3900 persons. Yamaha chose Chennai for setting up their third plant in India mainly because of following two reasons;

1. Locational advantage

  • Continuously expanding Two Wheeler Market in Tamil Nadu and South India and hence Yamaha can achieve quick and cost effective supply to end customers.
  • Easy Port access with good infrastructure
  • Strong vendor base in Tamil Nadu
  • Availability of Quality manpower

2. Investment friendly policy and approach of Tamil Nadu government

  • Eagerness to attract industries and excellent vision for industries especially auto industry.
  • Single window clearance through Guidance Bureau making the approval process smooth and company friendly

Right from the initial stages before signing of the MOU, Tamil Nadu Government agencies have been very supportive in explaining the benefits of setting up of the factory in Tamil Nadu. After a series of meetings an attractive package of assistance was offered to Yamaha. After signing of the MOU, they have been receiving excellent support from the various approvals for setting up the new factory. Yamaha has received tremendous support from SIPCOT right from land allotment, creation of infrastructure etc. and operations of their factory. Yamaha has praised the excellent coordination between various agencies to realize the necessary infrastructure and to accord timely approvals. Because of the proactive and investor friendly approach of Tami Nadu Government, Yamaha has successfully started trial operation from March 2015.

Further Yamaha has invited 9 critical vendors to Tamil Nadu and set up Vendor Park adjacent to Yamaha plot. The total planned investment of 9 vendors is around Rs.1000 Cr. In the entire Yamaha group, the Vendor Park concept is being implemented for the first time. Even though some of their vendor companies are Small & Medium Scale companies from Japan and are opening a factory in India for the first time, they are also receiving the same levels of support. Seven out of the nine vendor companies also signed MOUs with the Tamil Nadu Government in February 2014.

Yamaha strongly believes that Tamil Nadu state is one of the most attractive states for starting new business in India and would recommend Tamil Nadu to prospective investors from Japan and from other countries. Yamaha has been appreciative of the excellent support provided to them and their Vendor Park members to achieve their business targets.

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Sept 2015

Global Investors

Chennai Trade Centre, Chennai, Tamil Nadu, India
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